1 Surprising Factor That Can Cost You A Job Offer!

1 Surprising factor that can cost you a job offer!
by Joy Mali

The job market is extremely tough these days. Employers are looking for the best candidates to fill job openings. The number of applicants is massive, and the task of sorting through them is intense. Once an employer has the candidate pool whittled down to just a handful, they begin the process of identifying the best candidate. Each applicant's credentials are scrutinized, former employers are contacted, and personal references are called. But there's one more item that employers are reviewing that they didn't look at a decade ago--your credit report.

Bad Credit Limits Employment

It is getting to the point where you can’t get a job with bad credit. In recent years, employers have added background checks and credit checks to their list of tools for selecting job candidates. For those who have less than perfect credit, getting the best job possible is extremely difficult.

Employers have begun equating bad credit with irresponsibility. If you aren't able to take care of your own personal issues, why would they want you to work for them? Other employers consider people with bad credit as a theft risk. People who are behind on their bills might be more tempted to steal from the company. When you have bad credit, job offers are few and far between. Even though the worker may have an otherwise spotless employment record, the bad credit report can keep them searching for jobs.

Understanding Credit Reports

Credit reports may seem complicated and a little overwhelming for some people. They contain a lot of information regarding your past credit behavior, including payment history, credit limits, amounts borrowed, and judgments against you. Your credit score is based on several factors.

• Payments- How consistently you pay your loans and credit cards accounts for 31 percent of your credit score. Things like late payments, missed payments, and judgments for non-payment affect this portion of your credit score.

• Credit usage- How you use credit can account for up to 30 percent of your total credit score. This is known as your credit utilization ratio.

• Account types- The credit bureaus examine how many different types of accounts you have. If you have too many of any one type of credit, the bureau may lower your credit score.

• Account history- Accounts which you have had for a long time are usually considered better for your credit score. The longer you have had a credit card or revolving account, the more of a track record you have to offer.

• Hard credit checks- Every time you apply for a loan, your credit report notes the credit check. The more you have, the lower your credit score.

Checking Your Credit Report

Before you go in for your interview, preview your credit score. Understanding what it says and knowing how it affects your credit score are important. By being knowledgeable about your score, you can show your future employer that you are being proactive. When you do a credit score check, you will see the same things employers see.

You can get a copy of your credit report from any of the three credit bureaus. If you find any information that is inaccurate, you can report it to the credit bureau and ask them to investigate. Although the credit bureaus try to do as accurate a job as possible, mistakes still happen. Sometimes those errors are the result of inaccuracies in the reports sent by creditors. The bureaus have no way of knowing if that information is correct or not. It is up to you to review your credit report and identify any errors.

The job market is extremely competitive these days, and you need to present yourself in the best possible light. Having a bad credit report can certainly complicate your job search efforts. However, having a bad credit score doesn't always mean you won't land a good job. Still, you should do everything you can to keep your credit report looking good.

More Information:

Joy Mali is an active finance blogger who is fond of sharing interesting finance management tips to encourage people to manage their personal finances. More specifically, she advocates that people should check credit reports and scores regularly.

Source: http://www.PopularArticles.com/article455436.html