Archive for the ‘credit management’ Category

Poor Credit Can Harm Your Chances of Good Employment

Wednesday, October 8th, 2014

Is that fair?  Probably not, but it’s true.

A 2012 survey by the Society of Human Resources Management indicates that as many as 47% of employers check credit before making hiring decisions. The premise is that individuals with poor credit are probably having financial difficulties and so might be more likely to embezzle funds or sell company secrets for a profit.

That has no bearing on your ability to perform a myriad of jobs to an employer’s satisfaction, but it still might have a bearing on whether you’re chosen for the job.

You can deny them the right.

Before a potential employer can check your credit, you must sign giving your permission. You can refuse, but then what are your chances of being hired? Refusal could be (to them) a clear indication that they’ll see something damaging on that report. They may not be able to turn you down based on the refusal, but it’s easy enough to find some other reason to choose a different candidate.

What can potential employers see?

They can’t see your credit scores, but they can see all of your identifying information such as address, date of birth and previous employment information. They can also see your trade lines and credit accounts and take note of the number and nature of inquiries into your report. Finally, they can see things of public record, such as information on collections, foreclosures, bankruptcies, etc.

They’ll also see any mistakes that appear on your credit report:

Credit bureaus are quick to admit that up to 70% of all credit reports contain some kind of error. It may be something simple, like a misspelling of your name, or it may be something serious. For instance, a missed keystroke could put someone else’s collection on your report just because your social security numbers are one digit apart.

“70% of all credit reports contain some kind of error”

That’s one of the reasons why it’s important for every citizen to access their credit reports with regularity, and to read them carefully. When you spot a mistake and report it quickly, it has less time to do damage.

“Thieves can open new accounts completely without your knowledge”

The second reason is identity theft. No one is immune from the threat, and one of the fastest ways to discover it and stop it is by keeping a close watch on your credit accounts and your credit report. Thieves can open new accounts completely without your knowledge. All they have to do is use a bogus address.

So be careful. Get your credit report and read it carefully. If there’s an error or an account you don’t recognize, report it immediately.

Click here to get your report today.

5 Important Reasons Why You Should Monitor Your Credit Report and Scores Regularly

Monday, September 29th, 2014

When it comes to credit scores, many consumers try to keep their head in the sand. They’re afraid to know the truth, or they think it really doesn’t matter.

But it does matter. In this case, what you don’t know can hurt you, and knowledge can become power.

Your credit score or scores play a central role in your financial life, and can even affect your personal life. That’s why you should monitor your credit report and scores regularly, and why you should develop good credit habits to keep those scores as high as possible. A bonus to receiving your credit report is the good advice you’ll get regarding ways to raise those scores.

1. Your Scores Will Determine Your Access to credit.

Lenders look at those scores to determine their risk in lending to you. Thus, when your scores are high you’ll have an easier time obtaining credit. When they’re low, you may not be able to obtain credit at any price, especially if you need money for a business start-up.

If you know you’re going to want credit in the future, get busy raising those scores!

2. Your Credit Scores Will Determine the Interest Rate You’ll Pay

With high credit scores, you’ll be offered credit at lower interest rates than those with poor scores. When your scores are low, lenders are taking an increased risk that you’ll default. They want to be well compensated for taking that risk.

Think about credit cards, whose interest rates can vary from under 5′% to 25%. In fact, I’ve seen offers made to people with poor credit with rates over 70% – combined with an annual fee reaching upwards of $200. Borrowers with high credit scores generally pay no annual fee.

Then think about home mortgage loans, where a difference of 1% on each $100,000 owed amounts to almost $60 per month.

If you want to pay the least possible interest on your next purchase, start raising those scores!

3. High Credit Scores Make You Attractive to Landlords

Low scores make you a high risk and your rental application is apt to be flatly turned down. No landlord wants the risk of tenants who fail to pay rent – or who move out in the middle of the night.

Thus, even if you treat your housing well and have always paid your rent on time, low scores could prevent you from living in the location you prefer.

If you want to live in a prime location, get your credit scores as high as you can!

4. Poor Credit Scores Lead to Utility Deposits

Utilities such as electricity, water, gas, phone, and cable TV can’t repossess what they’ve sold you if you fail to pay at the end of the month. Thus, when your credit scores indicate that you’re a high risk, they’ll demand a deposit up front before providing you with service.

If you want utility companies to trust you, raise your credit scores!

5. Last but definitely not least – Monitoring your credit report and scores will help you avoid the huge headache of identity theft.

Identity theft is always painful, but it is MORE painful when it’s been allowed to continue for months on end.

Running regular checks on your credit scores will alert you to a sudden drop, which might indicate fraudulent activity. And when you actually read your credit report, you’ll know instantly if someone has obtained new credit, rented a house, signed up for utilities, or even gotten a new job in your name.

Reporting such theft instantly will minimize the damage and the pain.

Request your free credit report and scores from today.

Just click here

Disclaimer: This information has been compiled and provided by as an informational service to the public. While our goal is to provide information that will help consumers to manage their credit and debt, this information should not be considered legal advice. Such advice must be specific to the various circumstances of each person's situation, and the general information provided on these pages should not be used as a substitute for the advice of competent legal counsel.