Why is credit score used in job application process
Over the past decade we have witnessed drastic changes to how human resources departments manage the recruitment process. If you look at how easy hiring was some 20 years ago the difference appears to be even greater. Back in the days in order to get a low level job candidate had to exhibit motivation and possibly some relevant experience, while executive jobs were mostly about experience and, let's face it, social connections. Today, the human resource officer has the ability to not only learn the academic and work story of your life from increasingly detailed resume and interview, but also much about your social life – courtesy of the most popular social portal – and financial standing in the form of credit report.
Experiments
There have been many attempts to make recruitment more accurate and some of us have already took part in the ‘emotional intelligence' tests as those emerged, but checking candidate's credit score in order to verify financial responsibility is relatively new outside of the financial sector. Someone could argue that people who cannot manage their own budget will most likely fail at commanding the funds of a company they work for, but why check credit report of an IT operative? Do I really need to find my credit score if there's nothing in my job to do with money?
Checking for identity fraud
The other reason why credit score checks have been on the rise is the fact that terrorism has changed our approach to life. You must have heard reports in the news about terrorists infiltrating societies under false identity only to strike when we expect it the least. Credit report lays bare your deeds over the past few years and is extremely helpful in establishing whether someone is committing an identity fraud. If you think about from this perspective, then the extra effort is worth security it provides in the long run.
What if your credit score is really bad?
In case your credit report is really poor I have bad news for you – it's unlikely that employer will consider your application favourably. It's especially hurtful when you look for a job because of a bad financial situation which turns your score bad, but can't find it due to the very fact that your score is bad and it all turn into a perfectly vicious circle. In case of all things to do with credit score – it's better to prevent rather than repair and this is no exemption. Pay your bills on time and mind the deadline for mortgage repayments and check your score every few months to make sure everything is fine.
Questions and Answers
Article Tags:
credit score
,credit rating
,credit history
,loans
,jobs
,employment
,job search
,job application
,work
,competition
,personal finance
,background check
,credit report
,borrow money
,money
,lenders
,vacancies
,credit crunch
,improve credit score
,human resources
,problem
The crisis on job market and greater than ever competition for available vacancies has led to some radical decisions and procedures employed during the application process. You may have been surprised to discover that your prospective employer expects you to undergo a background credit check before you're finally offered the position.
Credit score is one of those things which we tend not to appreciate until it's gone. It's easy to underestimate the importance of good credit history when stable job and savings create a sense of financial security, but what happens when disaster strikes and suddenly you find yourself struggling to pay the bills?
Registering a company is no longer a time-consuming and tedious business. With the new online company formation services available you will be able to register your new company in just a few clicks of a button.
Establishing large credit card debts in college develops poor money management skills. Also, high interest rates keep students in debt well after school.
"In full swing, there is news in the industry every day." A third-party payments industry veteran, told us. Third-party payment industry is in the most rapid period of development of this industry.
Typically, small company proprietors rely on financial loans to invest in their companies. But when you're a small company, remember to think about other kinds of economic financing like a business credit line.
If you're planning a holiday with your family, don't forget to include your credit score with you. Monitoring your credit score while you're away can be a big help. If the thought of thieves running up a huge debt on your credit card scares you, then online monitoring is what you need. Read article to know more.
Most of us have friends and family members who have applied for a mortgage loan but have been rejected by lenders on various basis.
Not all debts are equal in the financial world and same should be in your perception. The truth is that some debt will very quickly multiply while other can probably wait a while longer and have a lower priority.
Mortgage loans are serious business and deserve a proper explanation. How many times have you been trying to grasp the concept of secured loans but were stopped by jargon like APR, variable rate and capital?
Overcommittment is a common reason banks give for refused mortgages and other loans. In very simple words, lenders are trying to tell you that your credit facilities can no longer accommodate for expenses you are trying to pay for with borrowed money.
Times are hard and and a lot of us suffers financial problems. With the recent rises in electricity and gas prices it's no surprise that more households are struggling to cover their monthly expenses - forget about such luxury things as holiday or going out.
Discuss this Article
