Why is this?
They believe it is a mark of a lack of responsibility. Someone who cannot take care of their finances should not have a position of responsibility within the company. It is a hard reality to deal with. There are actions you can take to ensure this does not happen, though.
Establish a Secure Line of Credit
Store cards and cards for people who have bad credit are an ideal way to begin rebuilding your credit score. There are two main features to these lines of credit:
1. They have higher interest rates.
2. You can expect them to have far lower limits.
They are like the training wheels of the financial world. Once you learn how to use these correctly, you can graduate to riskier cards with higher limits and lower rates.
Utilization Rates
You should never use more than 30% of your credit limit at one time. This is known as the utilization rate. If you have a utilization rate of 30% or over, this is a sign you are financially irresponsible. It is an example of you relying on your cards to survive, and that is not a good sign.
Only go over these limits in an emergency, and make sure you get below this limit as soon as you can to preserve your credit score.
Pay On-Time and in Full
Late and partial payments have the biggest detrimental impact on your credit score. Whenever you make a purchase on a card, you should always check whether you can meet the repayment by the deadline. If you cannot do not make the purchase.
When Your Score Improves
As your score creeps towards the 680 mark this is where you start to appear on the databases of credit card companies. This is where they are interested in sending you offers for higher tier credit cards. Acting in the wrong way here can cause your score to plummet once again. Just be sure that there are some things that can kill your credit score.
If you want to keep your chances of getting that job high, stick to the same principles as before. Only take higher tier credit cards if you know you can make the repayments and prevent yourself from getting carried away.
On the other hand, dealing with higher amounts of credit successfully can continue to push your credit score ever higher. A bad credit score can destroy your ability to get a job, but a good credit score can enhance it.
Conclusion
It is unfair that something like personal finance can now come into finding a job. However, we cannot do anything about it. Your only option is to work on improving your credit score.
It really depends on the type of job you are applying for, though. Remember that good personal finance is a mark of responsibility and integrity. If you are applying for a position that requires both of these things, expect them to check your score. If not, you might not need a good credit score.
Have you ever encountered a situation where a credit score has held you back from getting a job?
source: 20smoney.com
