Saturday, June 22, 2013

5 Ways a Bad Credit Score Can Hurt Your Career Growth

Do you know how good your credit score is? According to Statistic Brain, only 35% of Americans checked their credit file at all last year, and the national average has plummeted to just 691. Despite that, 90% believe that they have a low or average level of debt - but does it really matter? 

Your credit score doesn't just decide if you can finance that new leather sofa, or if you'll get a good rate on your mortgage application. It can have a big impact on your everyday life, too, and having a bad credit score can even stop you being able to get promoted, or even get a job in the first place. So why does it matter, and what can you do about it?

You Can't Get A Job


According to Forbes, 6 in 10 employers now check the credit of their potential new hires. Failing the check can mean kissing goodbye to the job, even if you excelled at interview. Good credit shows the employer that you're a more responsible person. If your job will involved handling money, valuable items or locking up, it's even more likely to signal the end of the road. Financial gurus like Mark Weinberger are perfect to emulate when looking to get your finances on the right track. 

You Can't Get A Phone Contract


Most jobs will require you to be contactable, which means carrying a phone around with you. The best deals on handsets and air time are offered to contract customers who can afford bigger monthly payments: with poor credit, you are likely to be offered a higher rate, or be rejected completely. A pay-as-you-go phone can seem a good solution, but you are charged much more, so keep calls and texts to a minimum and make sure you've always got credit.

You Can't Get Insured


Whether it's getting to work in the morning or driving around as part of your job, chances are you'll need a vehicle. Not a problem if you can get a good finance deal, and some cheap insurance; but terrible if your credit is shot, or if the company can't insure you on a company car. If transport is essential, your only option is to join a car sharing scheme, or show your bosses that you've researched public transport and don't need to drive.

You Can't Move


Sometimes the best opportunities require sacrifice: including relocating. While the best companies will offer a relocation package and try to help you get on your feet, that's not normally an option unless you already work for the company, and they won't help with contracts. If your credit would stop you from renting or buying a new place, you may have to pass up the promotions and opportunities until its better. 

Solving The Problem


So what can you do if you find your credit score holding you back? Be honest. When you give permission for the check, mention any CCJs, DMPs or finance management. Offer an explanation if you have one, and show how you are trustworthy and reliable.If your credit history doesn't come as a surprise, you are much more likely to get the job.

Credit scores has a much larger impact on our lives than many people believe, so make sure that you aren't receiving the brunt of it for your past financial mistakes. 




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