Protect your credit. Sounds simple, right? There was a time in our recent past when our clients had some flexibility with candidates who had bad credit or poor credit as a result of the financial meltdown. Some of our clients had zero tolerance for hiring people with bad credit, while others thought it was a sign of the times. Fast forward to the present. With home values soaring, and incentive-comp on the rise again, our clients are taking a new look at credit standards for their new employees. Is it new, or have we reached a point when we can get back to the core principles of being accountable? Here are 7 steps for a newly minted high school or college grad to protect their career and financial future. Before we get there, let’s understand why it is important.
Poor credit, bad credit, charge-off, delinquency, slow pay all add up to a costly mistake over time. Potential employers take this into account when considering applicants in many industries, much like the rise of more drug testing for pre-employment screening. It starts with education; we need to educate our high school and college students about how finance works, and how it impacts our lives in the short and long term. News-flash, nothing is free! A bad credit score can add hundreds if not thousands in additional cost for monthly bills with credit cards, installment loans and yes it also impacts car insurance.
Our clients pull credit reports, and they take a close look at them. It speaks to more than just “Do you pay your bills?” It speaks to core values, ethics, integrity, and accountability.
Learn to protect your credit now. Here are our 7 tips:
- Educate yourself on how credit works, how to build it, and how to leverage it for long term success
- SAVE, SAVE, SAVE (establish a savings account with auto deposit straight into the account)
- Build a face to face relationship with your community bank or credit union
- Add a block on your credit report to prevent unauthorized use (requires all new credit inquiries to be verified)
- Know your Credit Report, really know it to make sure it is accurate
- Be proactive if there is a past credit problem
- Explain it, do not make excuses. Be able to explain the situation and the resolution!
– by Brian Rhonemus
For more career management tips, contact us today for a confidential career management consultation.