If you have bad credit, you may feel financially trapped. It is hard to get approved for loans and credit cards with a low credit score. But what you may not know is that bad credit can affect other areas of your life too.
If you are applying for a new job or thinking about moving into a new place, now is the time to get your credit in order. Landlords often pull your credit report before they approve your application. Landlords want to know how you’ve handled past housing payments to insure that you are financially responsible and will pay rent on time each month. With a bad credit score, you may look like a risk and they won’t want you as a renter. Furthermore, employers often check your credit report as part of the hiring process. So, when you are applying for a job or have received an offer, certain companies will run a credit check on you. Employers want to make sure you are responsible, and a bad credit history can make you seem unreliable. In addition, the Federal Fair Credit Reporting Act gives businesses or entities the ability to pull your credit report if there is “permissible purpose.” As a result, employers and landlords can continue to pull your credit report once you are hired or have moved in. So, if you are up for a promotion, you could be turned down as a result of having bad credit.
If you have bad credit, you may be feeling helpless. But don’t let this turn you away from getting your dream job or the perfect apartment. There are some protective measures that can help you get what you want. Here are some tips to help you:
· Your employer and landlord must ask permission before running a credit check. That way, you are aware of the check and can say no. However, in many cases, if you do not authorize the credit check, you may not be able to rent the property or get the job.
· If your company or landlord does run a credit check on you, you are entitled to see the report and they must give you a copy. There is no charge for the report if you request it within 60 days. You can then check the report for any mistakes and correct any errors there might be.
· If you do have bad credit, you may want to explain your situation to a potential employer before they run your credit. Letting them know that you are still a reliable employee may help them make their decision based on you, not your credit.
· Know your state’s regulations. Some states have pushed back and restricted how credit reports are used in hiring. Others are fighting to make this practice illegal. So, check to see whether your state has protective measures before you authorize a credit check.
· This one may seem obvious, but improve your credit score. Not only will this help you with your finances, but it will insure that you do not have to settle when it comes to jobs or properties.