How a Credit Report Impacts Your Future Job and What You Can Do About It

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Most people understand a credit report can impact their financial future. They may or may not be approved for a mortgage loan, car loan, or apartment lease depending on their credit history. Did you know you need a good credit score for a job application in some cases? More and more employers are taking a look at applicants’ credit histories. If yours isn’t looking too good, there are some things you can do about it.

Why Do Employers Do This?

Employers have to protect themselves. While they don’t actually have access to your three-digit score, they can gain access to your credit report. This tells an employer in part how responsible you are. Particularly if you are applying for a position that has anything to do with finances, an employer wants to see if you can make payments on time and manage money correctly. 

Keep in mind not every employer pulls a credit check when someone applies for a job, so it’s possible you’ll slide by and get the job, even with a poor report. Just to be safe, the following are some things you can do to improve your credit report so you can get that job you’re after.

1. Find Out What Tradelines Are All About and Utilize Them

A tradeline allows you to take on established accounts as if they are your own. Individuals with great credit histories allow you to become authorized on their accounts. While you won’t have access to those credit lines, you will have the history on your report. 

This is beneficial because if that individual has had certain credit lines open for a considerable amount of time, and the bill was always paid by the day it was due, it shows up as your history. Coast Tradelines makes an assessment of your financial needs to pair you with the right tradelines for your situation. This is a convenient and easy way to improve your report.

2. Start Making Payments on Time

If you’re struggling financially while looking for a job, it may seem impossible to start making your payments on time, but it’s important you do so. Little by little, as you make those payments, your score will begin to improve. Your report will show that you took the initiative to improve your credit and were successful in doing it. 

If you have no income to make your payments because you’re currently on the job hunt, consider taking a job flipping burgers or pumping gas to make ends meet until you have the credit history to get a better job. If you find yourself in a situation in which you simply can’t even make the minimum payment, contact your creditor to see if they can grant you an extension. In some cases, they will, and in other cases, they won’t, but it’s worth a try and shows you’ll do anything to improve your financial situation.

3. Correct Errors

Every year you can obtain a credit report from each of the three major credit bureaus. Look over each report to check for any errors. The FTC reports approximately 5% of consumers are unable to acquire certain loans because of serious mistakes that, if removed, would make their scores improve immediately. When you find an error, you can report it to the bureau where it was listed. The bureau then has 30 days to have it corrected.

4. Stay at 30% of Your Limit

Someone who maxes out their credit lines every month may seem to not have self-control when it comes to finances. A good rule of thumb is to stay at 30% of your limit. For example, if you have a credit card with a $700 limit, you would want to make small payments to keep it around $210. If you have a large purchase coming up, consider paying off the entire card before making the purchase, and then pay it down gradually with small payments as you are able. You could also contact your creditor to see if they can extend your limit to $1,000 so a $650 purchase doesn’t look bad on your report.

Getting Started With the Professionals

You want that perfect job, and with that perfect job, you’ll better be able to pay off your debts. What can you do in the meantime so your credit report looks good for potential employers? You have many options in addition to tradelines, paying your debts, correcting errors, and paying down your limits. Contact Coast Tradelines today at 202-945-9556 or fill in our online form to learn more.