Check your credit report to get a good job

							                        Check your credit report to get a good job

Employers are now inclined to look over credit report to screen potential job applicants
and to check their reliability or risk of theft. Indeed, your credit history reflects your job
qualification, which in turn would tell if you are a trustworthy employee. Good jobs are
hard to find and with a spotty credit history, it can become even more difficult.

Why do employers seek credit report?

Fraud is too expensive for anybody to afford which is applicable in businesses as well.
Based on study, the two most common warning signs that an employee or job applicant
may commit workplace fraud are seen in the way one handles his financial obligations
and in one’s habit of spending beyond his means. The study explained further that these
warning signs cannot be measured using traditional methods.

The Society for Human Resource Management survey found that nearly 60% of
employers run credit check during some stage of the interview process and about 13%
conducted applicants’ credit background checks. And, there are 47 % employers banking
on credit checks to turn down job candidates. Many businesses performing credit checks
do it after selecting an applicant. But before offering him or her job, the candidate is
allowed to explain his or her credit results.

According to the survey, only specific credit information impacts hiring decisions.
Pending debt lawsuits and accounts in debt collection are major factors that may prevent
you from getting a good job.

According to Fair Credit Reporting Act employers can check applicant’s report, but
consent for the same is required. The employer has to provide copy of the report and
written application of the applicant’s rights, as this should be done after denying a job to
an applicant.


Protect yourself by routine reviews of credit reports

Review your credit file for errors. An error on your report can be a great hindrance in
acquiring a good job. You can get a free credit report each year from the three credit
reporting agencies–Experian, TransUnion, and Equifax.

     If you come across any flaw, alert the credit bureaus and creditors in writing.
      Corrected errors take time to display, so it is desired to review your history more
      often before you expect employers, or lenders, to request it.

     Go through the report to understand entries in the credit report so you can explain
      about the problem zones. Your credit report integrates debt, payment history,
      number and types of accounts. Lawsuits, judgments or bankruptcy (bankruptcies
      have ten year presence on reports) can all be marked on your file.
   Do you want to boost your credit score? Then, pay all your bills on time. Along
    with this, bring down your debt to credit ratio by decreasing the balance on your
    credit card. Also, check for your new credit applications or limit them.