Bad Credit Causing More Unemployment
Think about the person who is trying very hard to find that new job. They may have missed a few payments due to being out of work. This has caused their credit to be less than stellar. If they should find that perfect job, the future employer will run their credit. If the credit score comes back as low, their chances for getting the job are damaged. It is a vicious cycle.
Here’s how particular events could affect a person with a 780 credit score and someone with a 680 credit score:
Initial score 780 680 Maxed credit card 735-755 650-670 30-day delinquency 670-690 600-620 Settled a credit card for less than what’s owed 655-675 615-635 Foreclosure 620-640 575-595 Bankruptcy 540-560 530-550
The Arizona Republic reported today that The Society of Human Resources Management showed: 60% of employers conducted credit checks on job applicants in 2010. Of this figure, 47% have done so only for candidates for select jobs and 13% have done so for all job candidates.
What can you do to avoid having your credit score drop? Jahna Berry stated the following in today’s Arizona Republic: “If you’re headed for financial problems, carefully consider how missed mortgage payments, overdue bills or a bankruptcy filing could affect your credit report and your future job prospects, several employment experts said. Seek out help and look for options that will protect your credit.”