Effects of Bad Credit Score on Your Dream Job
Searching for a job can be difficult enough, but did you know that a bad credit score can effect your dream job? Employers may see bad credit as being irresponsible. It’s time to figure out what you can do to make changes and get things back on track.
HR Checks Credit Records
Effect of a bad credit score on your dream job begins with uncertainty as HR does credit checks on certain prospects. If you are in the running for a great job, one mark against you can keep you in the unemployment line. There is some good news, as many of those credit checks are not done until after a position has been offered. They may look at your skills, education, and experience if you have done well enough throughout the hiring process.
No Credit Score “Hits”
A bad credit score can be attributed to too many hits/pulls on your record. Too many hits had a negative effect on credit reports. This is not so much the case today because many potential employers are doing full credit checks. Instead, they do a “soft pull” which doesn’t effect your credit score.
What You Must Do
If you have bad credit, the time to check your score is now. Therefore, before you start applying for new jobs (or dream job), get into the habit of checking your credit score regularly. You can go online and get free copies of your credit report. Once you have the report, you need to make sure that there are no errors that are going to affect your credit score. When the errors are fixed, contact an agency to help you get out of debt and increase your credit score.
What Employers See
Potential employers are not able to see all of the details in your credit report. There are three main topics in which they take into consideration: credit utilization, numerous credit card applications, and outstanding debts or bankruptcy.
Credit Utilization
The first thing you need to do is look at how to remove the effect of bad credit score on your dream job. Once you have identified any mistakes on your credit report, then is time to start taking action to get your credit score where it should be. This percentage ideally, should be 30% or lower. High credit utilization is seen by employers as someone who has gotten in too deep and cannot handle a budget.
Say “No” to New Credit Cards
Stop applying for new credit cards, as you could still be damaging your credit score. If you have a lot of cards and a high credit utilization percentage, it could affect your dream job. If you are applying for many credit cards, it is considered a hit on your credit score, and you will lose points. Also, potential employers can see if you have a lot of credit inquiries, and this may show them your ways of handling money and your debts.
