How To Prepare for a Credit Check

When searching for employment, you may not realize a credit check can be a part of it. While the hiring company won’t see your credit score, they will be able to see payment history, use of available credit and marks on your record. The financial history of a potential hire can help a company determine if they can trust the new employee. Keeping tabs on your credit is important for multiple reasons, and when a job search is in your future you need to know how to prepare.

Look at Your Credit Report

You have the ability to pull a credit report from the three major reporting bureaus once a week. Taking the time to peruse your own report will show you the areas you need to improve on and any erroneous marks on your credit. Removing any outdated information can help increase your score. Your credit report will give you insight into your own financial history, including current account balances, closed accounts, judgments or bankruptcies, and how each is affecting your score. Many financial sites can recommend actions to improve your credit score quickly and efficiently.

Lower Credit Card Balances

If you have high credit card balances, pay down as much as you can to show you’re not overextended financially. Financial experts recommend you use no more than 30% of your credit card balances. The lower your balances, the higher your credit score becomes. Your credit check for employment will show potential employers that you can handle credit responsibly without relying on it for a lifestyle you can’t afford. Low balances help you avoid paying out loads of interest as well.

Pay Bills on Time

Payment history is a huge factor that affects your credit score. Making sure each bill is paid on time can be one of the best ways to improve your score and avoid costly late fees. When you miss payments, it is marked on your credit report. The later the payment, the greater the decrease in your score. Automatic payments can be the best way to help you never miss a payment again.

Your future employer may be impressed with your ability to answer questions confidently in an interview, but if your credit isn’t up to par they may pass on you for the position. To prevent that from happening, take the time to investigate your credit score and take steps to improve it before searching for your next job.