Having bad credit is surely negative for your finances in many ways. However, not everybody realizes how slow credit impacts employment opportunities. Though federal regulations prohibit using certain credit considerations to evaluate hiring decisions, truth is, that nobody can get into the mind of an employer and important companies always pull the applicants’ credit information when they have to fill an important position.

Personal Bankruptcy And Its Consequences

The worst entry that can appear on your credit history is undoubtedly a personal bankruptcy. The reason is simple, this represents financial failure and though external variables may have accounted for the main reasons, truth is that someone who has gone through a process like this one failed to take control of his or her finances and that implies poor budgeting techniques, lack of caution and preparation and many other characteristics that someone to be considered for a high position at a company must have.

Taking into account that a past financial failure can stay on your report for more than five years after it has been discharged, you should avoid it at all costs. Slow credit is damaging but bankruptcy is devastating in terms of credit, financing and job opportunities. Most of those who have gone through a bankruptcy in order to recover will need to cope with lesser important positions at big companies or simply run their own business in order to progress. All the above is true even though legislation prohibits taking into consideration bankruptcies on these decisions because though the actual bankruptcy cannot be used as an excuse, the rest of the delinquencies that lead to it can or a general low credit excuse can also be used.

Increasing Credit Pulls On Job Offers

More and more companies are using report information to evaluate applicants and increase accuracy of hiring decisions. Though the decision may not be based on scoring, proof shows that it is becoming more important each year. According to statistics, more than 40% of the companies of certain entity are requesting credit pulls to all three mayor credit bureaus during applicants’ selections.

Not so long ago it was believed that reports could be a good indicator of certain conducts including fraud, workplace theft, critical data and information theft, etc. However, most employers know that that kind of behaviors cannot be predicted based on a credit report. Instead, they want credit checks in order to assess the applicant’s capacity in terms of leadership, efficiency, decision making, etc.

Remember also that your report includes additional information like work history, social security data, etc. All this information can be critical during the decision making process of hiring personnel, promoting personnel or firing. In any case, a damaged credit report will endanger your ability to obtain a good job position, to keep it or to improve your current situation by obtaining a promotion.

Finally, though no employer can pull your credit details without your authorization. When you apply to almost every job position where you need to be evaluated extensively, you will be required to agree to such a process. Those applicants who do not agree will be evaluated too in order to keep everything within legal boundaries but chances are that you will not be taken into account by the employer. If you want to know what additional rights you have as a consumer and employee regarding this matter, you should review the Fair Credit Reporting Act.

Author Bio: Kate Ross has a Master in Finance and has been a financial consultant for years. She specializes in Guaranteed Personal Loans and also in helping people to get approved for Guaranteed Loans for Bad Credit, unsecured loans, poor credit loans, no credit check loans, student loans among many other financial products. Visit her at http://www.speedybadcreditloans.com

Category: Finances
Keywords: bad credit loan,unsecured loans,no credit check loans,guaranteed loans with bad credit,I need a loan