Bad credit could cost you a job
Filed under: Credit, Debt, Career, Recession
Some people are being turned down for jobs because they have bad credit. Nearly half of all employers check credit reports to screen folks during the application screening process, according to the Herald of Monterey County.
That means that many unemployed folks who are struggling because of the recession may be viewed negatively by job recruiters.
"Companies ... want an insight into how an individual conducts their own life, because that's typically how they're going to conduct business inside your business," Mary M. Massad of personnel management company Administaff told the Herald.
But although checking credit reports gives a snapshot of a person's finances, it doesn't always give the whole story. For instance, how much are recruiters taking into account the fact that many people were paying their bills on time until they got laid off?
Also, how would they regard a situation where a person is going through a divorce and being held responsible for debt incurred by their ex? Are they more lenient in a situation where a job applicant has been the victim of identity therft?
Furthermore, what happens if a company rejects a job applicant based upon a credit report that contains errors? Will they be willing to take a second look at the person if they can explain their situation?
While many people knowingly give employers permission to run credit checks during their job hunt, others may miss that credit reports will be pulled because they don't read job applications closely. To avoid problems, job hunters should always read through all paperwork before signing.
If you're job hunting and haven't looked at your credit report in the past year, request a free copy from annualcreditreport.com to make sure there's nothing in it that will derail your chances of getting hired.
But running credit checks is legal most of the time as long as job applicants have received notification they will occur, so job hunters may have no choice but to go along with them if they want to be considered for certain jobs.
Reader Comments (Page 1 of 1)
6-25-2009 @ 8:36AM
Megharaja SH said...
These are series of article on Bad credit and Credit cards in the blog www.badcreditrepairs.info.
In this www.badcreditrepairs.info blog you can also find lot of youtube videos on Bad Credit and credit repair.
Reply
6-29-2009 @ 11:12AM
Bugie said...
Refinance with Bad Credit.
http://thecredit.blogspot.com
Bad Credit Mortgage Refinancing Loans are Used to Solve Two Different Problems.
Problem Number One: The homeowner has bad credit, significant high interest credit card debt and a home with substantial equity. In order to pay off the high interest bills, the person refinances his/her home and cashes out all or part of the equity. The cash from the equity is used to pay off the high interest obligations. Although the interest rate on the bad credit mortgage refinancing loan may be higher than that of a conventional loan, the house payment should still be less than the total of the high interest consumer debt.
Refinance with Bad Credit, where the owner intents to use the cash from the home’s equity to pay off bills is called a debt consolidation loan. The value of the home being refinanced must have grown so that the home's appraised worth will justify a larger loan. The new loan amount must be high enough that the owner can cover the loan’s closing costs and still have enough left over to pay off the credit card debt.
A bad credit mortgage refinancing such as this can have several advantages. The term of the loan will be longer. Since even a high interest sub-prime loan carries a lower interest rate than do high interest credit cards the new house payment will be smaller than the total of the old house payment and the consumer debt payments. However, choosing to refinance in this manner carries risks. If the homeowner does not change the behavior that led to the high debt, even more high interest credit card bills may be accumulated. Since the homeowner’s equity has already been “cashed out” of his/her house the only alternative in a money crunch may be bankruptcy or foreclosure.
If a homeowner chooses a debt consolidation loan as the method of bad credit mortgage financing, it is imperative to use the cash received to pay off the accumulated debts. Credit counseling to keep from returning to poor credit practices should also be considered.
Problem Number Two: The homeowner had bad credit when the home was originally purchased and had to take out a high interest subprime mortgage loan at that time. Two or more years have passed since the loan was made during which time the homeowner has made all of the loan payments on time and has incurred no other bad credit. Now the time has arrived to refinance the loan and receive a better interest rate.
Even with two years of excellent credit history, a homeowner trying to refinance a bad credit mortgage may not be able to obtain a conventional low interest loan. The type of loan that can be attained will depend on a variety of factors such as current income and how much debt the homeowner has.
Refinancing a bad credit mortgage under these circumstances may be a good idea if the following two statements are true.
1. The new loan will carry an interest rate two or more percentage points lower than the current loan.
2. The homeowner plans to stay in the house for three or more years.
More recommend Here
http://thecredit.blogspot.com
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6-30-2009 @ 11:29AM
BL said...
What a bunch of bogus nonsense with this credit score and credit card companies playing the bullies. Never mind helping others so they can get on their feet just keep beating them down. Wake up America this bogus information system is dragging us down. I hope those who are making these regulations get hit with the same tactics they are pulling on everyone else!!!!!!
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7-06-2009 @ 1:49AM
bad credit credit cards said...
Thanks for sharing such great post, according to me we keep the credit cards as an added facility, but sometimes it cost us too much for making payments of the credit card bills. For more details on bad credit credit card refer http://www.prime-targeting.com/bad-credit-credit-cards-credit-cards-debt-help/
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7-28-2009 @ 2:33PM
jarvis said...
this article gives some tips for job searchers with bad credit..
http://www.top-colleges.com/blog/2009/07/23/bad-credit/
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