3 jobs that can be harder to get with bad credit
Through Jill Krasny / Credit.com
Are you looking for greener pastures or are you just feeling up for a new career challenge? If so, it doesn’t hurt to have good credit, as some employers pull a version of applicants’ credit reports during the application process as part of a background check. For jobs that require federal government security clearance or access to government facilities, for example, a credit report is essential. And when that credit report is pulled, you better be spotless (learn how to make sense of your report here), for fear of losing at work due to your bad credit history.
Here is an overview of some jobs that require solid credit to get their foot in the door.
1. Security clearance jobs
Military personnel, IT professionals … many jobs require government security clearance, and if you apply, your credit report will usually be checked. While your overall credit or FICO score is irrelevant for an adjudicator to a background investigator, Marko Hakamaa, contributor to career networking site ClearanceJobs.com said via email, “your story of being financially responsible and to pay the debts as legally and fairly agreed “is important. The reason:” It is a reflection of a person’s honesty and reliability, “he said.
If that’s not reason enough to work on building your credit, Stephanie Benson, Managing Director of ClearanceJobs.com, added that “Regular credit reports will also be pulled for current authorization holders in the area. part of the continuous monitoring process. ” So, if you’ve let your credit down, now is the time to put things in order.
2. Financial broker
Your good credit history is more than just a ticket to lower mortgage rates and travel credit cards. It can also help you build a career in the high stakes world of finance. This is according to the Financial Regulatory Authority (FINRA), which requires that potential applicants be screened. FINRA was not available for direct comment, but a notice published in March 2015 says:
“FINRA Rule 3110 (e) requires each member firm to investigate a candidate’s good character, business reputation, qualifications and experience before the firm applies to register that candidate with FINRA. and before making a declaration to this effect on the application for registration. “
The information disclosed on the organization’s U4 form is used to help determine whether an applicant should be disqualified or whether they may present “a regulatory risk to the company and to customers,” FINRA adds. “Businesses may also wish to consider private background checks, credit reports and letters of reference for this purpose.”
3. Mortgage agent
Although Joe Parsons, senior loan officer at PFS Financing in Dublin, Calif., Has never heard of anyone being denied a license purely on the basis of their credit, he believes regulators are looking for evidence. fraudulent activity that might appear on a credit report. like judgments, ”he said via email. So, yes, mortgage loan officers today are licensed under the national mortgage licensing system and part of that process involves a criminal background check and credit report, Parsons said.
The keys to great credit
When you apply for the jobs we’ve listed, you’ll want your credit to be as polished and professional as your resume. So how do you do this? By paying attention to the impact of your spending habits on your credit, you can check two of your credit scores for free on Credit.com – and understand what it takes to create strong credit. Here’s a quick rundown of what goes into your credit report.
Payment history: Also known as payment performance, your payment history is worth 35% of your credit score points and refers to your established history of paying bills on time. If lenders report that you missed a few bills to credit reporting agencies, you can guarantee that the information will show up on your credit report and lower your score.
Amount of debt: Credit usage – that is, the amount of credit you use out of your total available revolving credit limits – accounts for almost 30% of your credit score points. So if your debt is getting close to that credit limit, or worse yet, exceeding it, your credit may be in trouble. Remember, the lower your ratio, the higher your score. Other debt, such as open or installment debt, can also negatively impact your credit if you don’t manage it responsibly or if it’s excessive.
Types of accounts: Student loans at credit cardit helps to have a healthy group of accounts (also called a “credit mix”) on your credit report. In fact, whether or not you have a variety of accounts can affect up to 10% of your credit score.
History of credit research: Worth 10% of your credit score points, this section of your credit report assesses your history of inquiries or what happens every time someone checks your credit report. When you apply for a loan or qualify for a mortgage, for example, an inquiry will appear to your credit. If you shop around a lot for credit, you will likely be considered high risk for lenders.
Account Age: Some people like to say that age is nothing more than a number. But in the credit world, that refers to the information age in your credit history, and that matters a lot. Worth 15 percent of your credit history points, the older your history the better your score.