subject: Credit Repair Tips - A Bad Credit Report Could Cost You A Job [print this page] A Bad Credit Report Could Cost You A Job.
Recently, I was at a 7-Eleven to pick up a cup of coffee. I noticed a local newspaper cover page with the headline "A Bad Credit Report Could Cost You a Job".
I bought the newspaper and read the article.. The articles was really catchy as it talked about how today so many employers are using credit reports and credit scores to make their decisions on hiring an employee.
This is a very dire situation. Millions and Millions have a bad credit not because they want to, because some had job losses, medical emergencies & some have so much mental stress that they can't even think straight. This is like "the chicken or the egg which came first" situation.. The statistics that were shown in the newspaper referenced a survey that was done by the Society for Human Resources. They found that in 2009, 60 percent of the employers ran credit checks which are up from 42 percent in comparison to 2006. It shows that 50% more employers pulled credit reports within 3 years.
Can you even Imagine the kind of thoughts that might be running through a person's head who is already suffering because of bad credit?
Personally, employers who are using credit to decide whether or not to hire an employee should be sued.
A candidate's qualifications for the job is what an employee should look for and on top of that it what is going to help the candidate's financial situation as well. A great way to help everyone including the employer to have a great employees could be to offer Financial Education Services to its employees.
As with everything negative there is some positive as well. This practice has banned in WA & HI. Congress is looking at a pending bill to ban credit reports from being used for selecting a candidate for the job. However, there is an exception for people in the financial services industry and certain government jobs in the bill.
Being in the financial Industry as a Certified Credit Counselor I would like to suggest certain tips that can help people with bad credit and how they can establish a good credit rating.
Tip #1: Using Your Credit Cards Effectively: First thing to remember is that Credit Cards are money that is lend to you based on your past credibility. The credit card companies have allowed you to use their money to be able to buy the things you want and need. There is a great way to maximize the use of the credit cards and even take advantage of the credit cards. Most Credit Cards offer reward programs when you use the card. To get the most rewards, the key is to pay off your credit card balance every month.
Tip #2: Use only 27 percent of the available credit limit: This is important. The best way to increase your credit score is to keep your used balance on your credit card to less than 27% of the available limit. A simple way to remember is that if you have a credit card with a limit of $1,000.00 then only $270.00 and pay it off at the end of the month.
Tip #3: Do Not Ever Close Your Credit Card Accounts: Doing so can very terrible. Your length of credit history and the total available credit limit is a big factor in the calculation of the credit score. If you close a credit card account that you have had for so many years not only are you going to lose the history along with that credit card account you are also going to reduce your available credit limit and this will hurt your credit score drastically.
Tip #4: Always Pay your bills before the due date: 35% of the weight in the credit score calculation is based on when you pay your bills. Paying your bills on time establishes your credit worthiness and based on which everyone do business with you. Personal life can be reflected based on the way you pay your bills. One of the reasons more employers have started looking at credit report before they hire an employee is this, to see how the employee manages things in their life. Employers understand that when a person can manage their personal finances well they can manage their job well as well.
Tip #5: Create A Plan: Let me share a very effective plan to help you start establishing a great credit report and credit score. If you do not have a credit card, get one. A good number of credit cards to have is 2, in addition to a home mortgage and a car loan. Understand that there two ways to get credit cards if you need one, secured credit and unsecured credit card. Banks will issue you a secured credit because you either do not have a credit history or have bad credit. It is issued based on the amount of the deposit you are willing to secure against the credit card. Many banks issues credit limit less than the amount your secure and I would shop around the bank that gives your same limit as the amount your deposited.
There is another way where you do not have a deposit a security to get a secured credit card, but it based on the direct deposit from your employer and it can commission based salary as well. The way that works is when you have your salary directly deposited to the institution they will issue a credit card, instead of a debit card. The way this credit card works is when you use the credit card to either withdraw money to make a purchase, it takes the money from your checking account but reports to the credit bureaus and which in turn is reflected on your credit report. It is a good way to get started. If you are looking for a credit card that can help you establish credit easily and cheaply visit my website.
One important thing to remember, which is unfortunate, is that a lot of businesses make money from people who are not able to manage their finances well. Think about it, who pays the most and at the same time earns or keeps the least. Having an excellent credit will allow you not only to save money by paying lower interest rates but also boost your personal confidence. When you are suffering with bad credit you may have to use the services of a company that can help you establish your credit, you may have to file a bankruptcy, do a loan modifications, pay higher interest rate on car loans, insurance rates, mortgage interests etc. Do You understand where having a bad credit can lead you to? You can stop this now.
I hope all this information was helpful and useful to you at the same time.
Credit Repair Tips - A Bad Credit Report Could Cost You A Job
