The current unemployment rate is 9.8% And as the rate sits at its highest level in 25 years, economists expect the unemployment rate to surpass the 10% mark this year even as the economy improves. This essentially means that 10% of all non-military employed persons or persons actively seeking employment are out of work. Because of the bleek job market many former employees are leaving the labor force starting business. And as millions of unemployed Americans and new business owners search for the economic means to provide for themselves and their families, they are finding that credit is more important than ever. Small businesses need credit to build and supply their business until a profitable goal is achieved, but jobseekers are finding potential employers requiring a credit report review prior to hire.
Some points to consider on your credit profile when applying for employment are the credit report your possible future employer will see is different than the consumer credit reports. The credit profile accessed by employers does not reveal credit scores. Credit scores are only used for evaluation on requests for credit. However, delinquent accounts, collections and public records such as judgments and bankruptcies are seen and the employment applicant should be prepared to address any of these issues with the potential employer.
Request a free copy of your credit report and address any holders of judgments, collections, or delinquent accounts and attempt to develop a plan to either pay in full (or partially) the debt to satisfy the account. Request any payment agreements in writing and make sure to write copious notes whenever talking with representatives of any debt/collection companies, in case reference are needed to prove your efforts to correct any errors on your credit profile. Consider writing a statement to address any derogatory information and request your statement be placed on your credit report with the three major credit reporting bureaus. Most of all remember to review your credit profile regularly for errors and act quickly to correct any mistakes as you credit could be the key to your employment future employment.