by: Michael Creditfirm.
Employers have been using credit reports to determine whether to hire a prospective applicant for well over 20 years.
Lets take a look at your credit report and find out what it says about the type of employee you are.
1. Payment History – Punctuality
Payment history is a great way of gauging your time management skills. Paying your bills on time shows potential employers that you can be trusted to stick to a schedule and always be on time. If you don’t pay your bills on time, the employer will assume that you may have a tendency to come to work late.
2. Utilization Rate – Organization
The utilization rate shows your dependency on debt. A low utilization rate (20% or less) shows that you know how to manage your finances and only rely on credit for the purpose of convenience. A high utilization rate shows that you are overly dependent on debt and have a difficult time living within your means. This basically tells the employer that you are disorganized and can’t manage your finances.
3. Length of History – Stability
The length of your credit history shows that you have demonstrated good financial habits for a long time. The more stable your credit report looks, the more trustworthy you become in the eyes of the employer. A short length of history may bring up questions of instability and whether you’re in it for the long haul.
4. Mix of Credit – Multi-Tasking
Having a mix of credit between installment and revolving accounts shows that you are a responsible individual who has a balanced amount of debt. You don’t rely too heavily on any one financial obligation and can understand and manage different types of loan obligations at once. Having only one type of accounts may throw up a red flag and show your potential employer that you have a one track mind and an inability to multitask.
5. Inquiries – Responsibility
Too many inquiries within a short period of time says a lot about you. Mainly, it says that you’re hungry for credit, and this is never good. Inquiries show that your either in a very difficult time and severely need an extension of credit to stay afloat, or that you’re just starting to build your credit and may be biting off more than you can chew. Responsible people build credit gradually, little by little, and account by account, and make sure that they can handle what their are undertaking.
Although bad credit does not always indicate the type of employee you are, it is widely used tool that many employers use when judging a potential applicant. Your credit report is used to gain insight into your personality and dependability. Give yourself the best chance at landing your dream job by keeping your credit report clean and well balanced.
If you have a few red marks on your credit report, do something about it. Be proactive, fix your credit, and give yourself the opportunity for a brighter future.
If you need help to improve your credit reports, CreditFirm.net is here for you.
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