Your Credit Score and Your Job Search

More and more employers are pulling credit reports on potential employees. Why? For many reasons. If the employee will be handling money, the employer wants to know whether the potential employee might be tempted to commit fraud, to embezzle, or be vulnerable to a bribe. In addition, employers might want to check whether the job candidate has a past due account with the employer; if you're trying to work for Bank of America but are 90 days overdue on a Visa card you have with that company, the conflict of interest might lose you that job offer.

No one wants to lose a job prospect because of lousy credit. And yet--if you're out of work and the bills are piling up, how can you manage to keep a decent credit score?

The first step in deciding to boost a credit score involves knowing what the current number is. Request a copy from one of the major reporting agencies, like Experian. Once you have the number, examine the credit report for any mistakes. Mistakes can mean the difference between a good and a bad score.

Then, take the following steps:

1. Pay every single bill on time. Of course this is obvious, but even one lapse in a 60 day bill can mean the difference between a few points.

2. Pay down any "maxed-out" credit cards. A boost to your number cannot happen when you have maxed-out cards. Credit scores are calculated in part based on the ratio between available credit and used credit. Get your cards down to 50-60% usage.

3. Call to explain your current work status. Negotiate lower payments. This will help you to retain a decent credit score.

4. Try getting someone with a high rating to cosign a credit card or loan with you. Once the loan is paid off, your rating will get a nice boost. Use the money to consolidate other debt, to improve your credit rating and your appearance to employers in your job search.