The Importance Of Having A Good Credit History Is Often Emphasized

Category: Finance, Credit.

The importance of having a good credit history is often emphasized. However, your credit history isn t just for getting approved for loans or credit cards.

Some people reason out that they really don t care much about their credit history because they re not applying for credit anyway. It isn t just about getting lower interest rates and more credit privileges. Yes, this is one of the reasons why students are encouraged to establish their credit history early and keep it in good standing. Your credit history also plays an important role in how employers judge you and ultimately, in getting the job that you want. Thus, by the time they graduate and enter the corporate world, they will not have difficult time getting hired just because they have a bad credit history. When making judgment calls on a person s attitude and sense of responsibility, the status of one s credit report seems to be the more accurate basis. The truth is, more and more employers use one s credit report to check on one s background and credibility.

If you think this only applies to the executive level, you may be surprised to learn that even regular jobs now require good credit. Employers use credit reports as a more reliable source of one s personal information. According to a survey done by Harris Interactive for Spherion Corporation- a leading recruiting and staffing company, employers who screen employees based on their credit has increased by 55% in 2006 than six years ago. Nevertheless, a bad credit score may create a negative impression to a prospective employer. Would you likely hire an applicant with a credit history that is filled with records of charge offs and unpaid past due bills. Put yourself in your employer s shoes. If other applicants with the same range of qualifications present a more impressive credit report, wouldn t you be more inclined to hire someone with excellent credit?

If you re really serious about getting hired, you should strive to make the best impression. Wouldn t a credit report reflect an applicant s ability to handle responsibilities well? You want to get an edge over your fellow applicants in every way possible. Although the Federal Law prohibits an employer from refusing an applicant solely on the basis of their credit, you can t deny the fact that your credit rating can affect the decision of an employer on whether to hire you or not. You don t want your credit report to be the only factor to stop you from getting hired, especially if you possess the right skills and competence for the job. Therefore, the best thing to do is to keep your credit history in a good standing not only to avoid employment problems but also to prepare you by the time you ll need to apply for a car loan or a mortgage.