How Your Credit Score Can Affect Your Career
People with bad credit scores are more likely to be unemployed, live in poverty. It is not uncommon for people with poor credit to spend years living paycheck-to-paycheck or under the threat of eviction.
A credit score is a figure that measures how creditworthy someone is. A person's score can affect their ability to get loans, mortgages, insurance rates, and other types of financing. Credit scores are given by organizations like Experian (formerly known as TRW) or TransUnion (formerly known as JD Power).
Those with good credit scores are more likely to buy homes, cars, and other big purchases on time. They also tend to qualify for better interest rates on loans and the best insurance rates available in the marketplace.
What is a Good Credit Score and How to Boost It?
Credit scores are a 3-digit number calculated based on an individual's credit report. The higher your 3-digit number, the better your credit score and chances of successfully borrowing money and getting approved for loans.
A good credit score can range from 670 to 720 and is considered excellent. You can improve your credit rating by following these three steps:
Check that all of the information in your credit report is accurate, up-to-date, and unaltered. If it isn't, dispute the errors with the company reporting it to the bureau using their online dispute process or mailing a written statement to their customer service department.
Pay off any debts you owe as quickly as possible, so you don't incur late fees or penalties on your monthly bill payments.
Get into the habit of not maxing out credit cards or defaulting on loans or credit agreements.
How Career Prospects are Affected by Credit Scores
A low credit score can have a significant impact on your career prospects. It is not just your ability to obtain a loan for a house or car that will be affected, but the chances of you being offered a job.
This is because employers often require candidates to undergo a credit check, and it has been found that over 80% of companies run credit checks when hiring employees. If the employer considers that your credit score is too low, they may just outright reject you from the interview process.
Credit Score Tips for Young Adults
Always use sites to compare credit before committing to new credit; this will help you avoid unscrupulous lenders or paying too much in interest.
Building a good credit score starts with getting your credit report. This is the only way for you to know what’s on it and work on any errors. Your best bet is to access your credit reports from all three agencies.
If you find something wrong, don’t give up! You can contact the company that reported the error and tell them about it. They will investigate and get back to you within 30 days with a decision.
Then it is down to your financial habits, making sure you don't miss any payments, take on more credit than you can realistically afford, or keep your credit cards maxed out continually. It is a culmination of many different actions over your adult life that will improve your credit score.
Running a successful business can feel like walking on a tightrope while juggling multiple swords at once, both high adrenaline and exhausting. Success requires knowing when and what aspects of business require precision planning versus those you can leave to chance, whether that be startup superstardom or veteran CEOship.