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.

2. Check your credit report for any errors. If you notice any wrong information, first contact the credit reporting agency in writing to contest it. The agency will then work to either verify the information or delete it from your report. If the information is deleted, a corrected report can be sent to anyone who received a copy during the past 2 years for employment purposes. If the investigation does not end in your favor, you can have a statement of dispute added to your report.

3. Work with a credit counselor to improve poor credit. Credit counseling services can guide you through the process and offer valuable information to help you improve your situation. Some counselors charge for their services, while other nonprofit counselors offer their services for free.

4. Use a credit monitoring service. These services monitor your credit profile on a daily basis and alert you to any changes reported by each of the 3 reporting agencies.

© Cole for Credit Score Consultant, 2009. | With Employer Credit Checks, Poor Credit Can Hinder Your Job Hunt | http://www.creditscoreconsultant.com/103/employer-credit-checks/

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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.

Don’t open more credit cards than you need to – If you’re registering new credit cards every month or even week – stop! Only keep the ones you absolutely need, such as major credit card and a gas card. All those store-specific credit cards can act to ruin your credit score if you forget to pay them.

Resolve past-due accounts and collection activities – Your previous debt follows you, and doing things like resolving old debts can be a quick boost to your credit score.

© admin for Credit Score Consultant, 2009. | Easy Ways To Raise Your Credit Score | http://www.creditscoreconsultant.com/13/raise-credit-score/

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