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Job Hunters Beware: What employers think your credit reveals about you

Your credit history determines whether or not you'll qualify for loans; the interest you'll pay; if a landlord will rent to you; and, granted that you do get the apartment, if the electric, cable, gas and water companies will set up your utility service. What's more, a rocky credit history could even prevent you from getting a job.

Who's at risk?
Between 40-50 percent of employers now run credit checks on potential hires.* Consumer credit counselors at ClearPoint Credit Counseling Solutions see many clients who wish to change jobs but must improve their credit first. The most frequent professions requiring applicants to evidence good credit include government workers (with the military, post office, city, county, state, fire and police departments), aerospace workers, and those with access to money--retail salespeople, bank tellers, and finance officers.

ClearPoint's Financial Specialists also report that, many others come to us for help improving their credit so that they can will be eligible for promotions.

Why does credit history matter?
It's debatable whether a credit history predicts job performance, yet, human resource professionals site many reasons for using credit reports to screen job candidates.

Some believe financial problems indicate a greater risk for workplace theft. Others think money troubles at home will translate into distractions at work, while a stellar record indicates a worker will be more reliable, better with paperwork and more disciplined on the job.

Since approximately half of employers do care, and when look for a job, we need to be prepared.

What can I do?
Although performing credit checks is perfectly legal, several states and the federal government are pushing new legislation to stop employers screening out job applicants who can't pass a credit check. Politicians realize that with skyrocketing layoffs and foreclosures, further preventing so many from getting work will increase the unemployment rate and further the country's economic woes. Workers may find relief if and when these laws are enacted.

In the meantime, find out what's on your credit record before you need to find work. Run your credit report at least twice a year and review them to see where you stand. You may obtain free copies of your credit reports once a year at annualcreditreport.com.

If you can't make sense of the information on your credit report, consult with a consumer credit counselor, such as those at ClearPoint, for assistance interpreting it and advice on how to improve your credit.

Refute errors. Although foreclosures, evictions and repossessions are harder to overcome, you can dispute negative notations more than seven years old, fraudulent charges based on identity theft or late payments which weren't late. Instructions to challenge incorrect information are located at the end of each credit report. You are required to submit supporting documentation. You may enter your dispute with each bureau online, but to create a paper trail, we suggest that you make a copy of your entire submission and mail it, certified, to each credit bureau. The original will stay with your records. the credit reporting agency then has 30 days to respond to your challenge.

You can also start taking action to improve your credit. There is no quick fix. The number one thing you can do is to pay your bills on time. Reducing debt and keeping it low is also key. ClearPoint also offers tips on how to better your credit. If you follow these guidelines, you could see improvements in several months.

Regularly monitor your credit reports. Question any activity or information you don't recognize and call your creditors immediately if you suspect identity theft.

A poor credit history doesn't mean you won't get a job. Nearly half of employers check your credit, but half don't. If your other qualifications and references are good, and you've encountered a death, divorce or medical issue, for instance, some employers are likely to give you an opportunity. If you work on more effectively managing your credit before you need it, you'll be in the best position of all when searching for work.

ClearPoint Credit Counseling Solutions offers assistance in reducing your debt and improving your credit. Call (877) 877-1995 to make a no-cost appointment.