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Consumer Credit Consulting
You aren’t likely to see “good credit” listed as a required skill for many job postings. But thanks to a growing number of companies conducting employer credit checks, many job seekers are realizing poor credit can cost them employment.
In today’s job market, the unemployment rate is high and the pool of talented job candidates is vast. Employers have the luxury of being as choosy as they like. And with employer credit checks less expensive than they once were, companies may choose to select candidates with clean credit, The New York Times reports.
As unfair or harsh as the practice sounds, it’s by and large legal at this point. But lawmakers in several states have proposed legislation to restrict the use of employer credit checks in the job application process.
Until then, follow these 4 steps to ensure a low credit score won’t affect your job eligibility:
1. Know your credit score before the employer credit check. By law, you are allowed a free annual credit report from each of the 3 reporting agencies: Experian, TransUnion and Equifax. Before applying for a job, request your report to determine how healthy or unhealthy your credit actually is.
Have you ever been curious to check your credit report and find your credit score? Was it as high as you wanted it to be? If not, we understand.
Raising your credit score is fundamentally about demonstrating to creditors you are fiscally responsible. If you used the above tool to check your credit score and found the results less than satisfactory, consider acting on the following items to raise it:
Pay all bills on time – Something as simple as paying your bills on time, especially in cases where you previously were late can help begin to inch your score upwards. This is best practices for getting your credit score up, and a good habit to get into.
Credit Card Balances can hurt your credit score – Savvy consumers know the importance of keeping a minimal amount of balance on their credit cards. Credit cards are a privilege, not a right, and treating them with that mindset is a good idea if you’ve been having trouble being responsible. If you have trouble overspending, consider leaving credit cards at home and only bring an amount of cash you are willing to spend with you. This way, you won’t be able to overindulge.