Are you one of the casualties of the Covid-19 pandemic? The coronavirus outbreak has caused a major disruption in the US labor market leaving millions without jobs. As the recovery from the pandemic is on its way, more people are actively searching for jobs and getting back into the workforce. Many companies are also actively hiring to fill the roles that employees have vacated during the outbreak.
Applying for a new job does not mean only perfecting your resume or writing a mean cover letter that will make any hiring manager’s breath away. But there’s also another thing that you should consider before submitting your next job application. And that is your credit. Most employers, particularly those in the financial industry conduct background checks on potential employees for security purposes through credit reports. Most importantly, employers want to make sure that potential candidates can handle their responsibilities, particularly for those who will work in managerial roles, handle large sums of money, and have access to trade secrets. Who would want to hire someone that can’t manage their own obligations, right? Check out pre-employment background check companies on the best ideas to maintain a good credit report.
Credit building is not only essential in your employment but in your financial future as well. Losing your job might take a hit on your credit score but there are things that you can do so that your credit doesn’t suffer though money is tight. Here are some of the ways to improve your credit score:
1. Keep track of your spending habits
Managing your spending is difficult particularly if you’re out of work. However, you have full control of your finances, and keeping track of your spending habits is always a wise choice. When you see that you have already exceeded your budget, only make essential purchases to avoid taking on more debt.
2. Manage your credit card use
Credit cards – a little piece of plastic that can be both your friend and worst enemy. Having a credit card extends your purchasing power by giving you a credit limit. This somehow gives an illusion that you have more money than you actually do.
Though credit cards can give you an opportunity to build your credit, it is important to know that you should not use more than 30% of your credit limit and pay in full any remaining balance in your account. In this case, make only essential purchases as much as possible. Use your credit card wisely. How do your credit card purchases affect your employment? Ask a reliable employment screening company.
3. Bills should be paid on time
Just like credit cards, your other bills such as loans and mortgages should be paid on time to maintain a good credit score. It might be difficult given that you’re out of work, but this is where the emergency fund comes in which hopefully you have saved up. Minimum payments on your bills would work as long as they are paid on time.
Most employers have pre-employment background check companies that conduct credit background checks on potential candidates. Thus, even if your resume looks so good but your credit report is depressing and the hiring role is to handle large sums of money, then the employer might pass you up for someone else. Fix your credit score and check how the employment screening company conducts checks so you will have an idea of what areas you need to adjust for your credit score to look good.