Your Credit Score Will Decide Your Fate

Looking for a job but not getting any? Maybe your credit score isn’t good enough.

Many employers, these days, are checking the applicant’s credit score to filter the pool, and shortlist the selected few. So if you miss payments on your mortgage, car loan, or electricity bill, you could just lose an opportunity of getting a job.

A recent survey conducted by Society of Human Resource Management says 60% of employers have started checking applicant’s credit score before inviting them for an interview. In 2003, the percent was only 35% and a mere 13% in 1996.

However, the time they have chosen in pathetic. This is the time when people are trying to emerge out of the recession and fighting the after-effects. This is the time when most of the population has a low credit score because they don’t have a proper job. So, they are stuck in a catch-22 situation. They can’t pay bills because they don’t get a job. And they aren’t able to get a job because they aren’t paying their bills.

However, more than a job, some people seem to be concerned about their privacy and leak of financial information. Many states, Hawaii, Washington, and Oregon, have passed a law that doesn’t allow employers to access an individual’s credit score until they can prove it’s needed for employment purpose.

Similar bills have been presented in 16 other states, and also in the District of Colombia, and decisions on these bills are yet to be made.

Is it really helpful for employers to have a credit check before offering a job? Of course, it is, says CEO of Consumer Data Industry Association, Stuart Pratt. Why would companies spend money on something that’s of no use to them?

Credit score gives a precise idea of how well a person can manage his credit. This information would help them decide whether or not he would be able to handle responsibilities. This is the only reason why they check the score as well as the report that talks about debt levels, payment habits, imminent bankruptcy, and so on.

However, many consumers and consumers’ lawyers argue that job applicants shouldn’t be judged on how they behave in their personal or private lives. Besides, the companies wouldn’t be able to know why the applicant’s score is low.

Improve Your Credit Score

If you intend to get a good job, improving your credit score is important. Most employers are following the trend. According to the numbers mentioned above, within a few years. More than 90% of the employers would check applicant’s credit score before offering a job.

How can you improve your credit score?

There are several factors that affect your credit score. This includes making payments on time, not closing old credit accounts, not missing out on payments, not applying for credit, and so on. However, you don’t have to worry about these factors. You can improve you by simply being more responsible. Remember, your creditworthiness is at stake.

Also, make sure you check your credit score once in every few months. This will help you to assess your progress and notify about any identity theft or fraud if any.


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