Your credit history report is a major factor on which lenders base their decisions as to whether or not to approve your loan applications. It should therefore be a primary concern for anyone with a bad credit rating to ensure that they take steps to make improvements to their report. This will help to facilitate the approval of future applications.

Apart from deciding whether a loan will be granted, a lending institution may also check your credit score in order to help them decide how much to lend you and over what period. These factors will influence the level of your monthly repayments. A bad credit score will make it difficult for you to get approval. Lenders base these scores on their own set criteria, one of which is usually your credit report.

However, there are effective steps that you can take in order to improve your credit score. The first, and probably the most important step, is to make a thorough review of your report to ensure that the information contained on it is accurate and timely. To do this, you will need to ask the lender that declined you whether they based their decision on your report.

If the lender based their decision on your report you will need to ask which agency supplied the report as there are a few different ones. Once you know the agency, you can apply for a copy of your report and they are legally obliged to send this to you. However, they may make a small administration charge for doing so.

Keeping your credit history report up to date and accurate may work to your advantage as it will reflect your current situation to lending institutions. Not only can you ask for inaccurate information to be removed but also information that is out of date. For example, bankruptcies and IVAs should be removed from your report after six years.

One way in which you can start to repair your report is by successfully obtaining finance. You may ordinarily find it difficult to obtain personal loans with bad credit but there are some providers that specialise in bad credit loans. Once you have successfully obtained finance you also need to make sure that you keep up to date with the payments.

Lending institutions will be looking for evidence of your ability to repay loans on time and this is likely to affect any future decisions as to whether to grant finance. It is therefore important not to get behind with the repayments on bad credit score loans as any defaults or legal action to recover arrears will adversely affect your report.

If you make many applications for finance this will also be reflected on your report because every time a lender performs a credit check, it is noted. If you are making several applications in close duration it may show signs that you are either taking on too many financial commitments or that your applications are being repeatedly declined.

Back on Track Loans specialises in lending to people with a bad credit rating. Furthermore, because we have more than 250 financial products available, we should be able to help you find a low cost loan. We can also help you if you are experiencing problems because of your debts.

Can Poor Credit Hurt Job Seekers?

Many American face problems in paying their student loans and mortgages every month. The reason for this is quite simple; they have either lost their jobs or have cut short their working hours, which, in turn, have brought down their wages too. A low credit score may become a red flag to the job hunters because numerous employers consider lousy credit as a sign of irresponsibility in the candidate.

How Can Your Credit Report Disqualify You?

One might think that finding a job and increasing your pay would be a simple task and based upon your experience and possibly willingness to work for less money. However, there are other considerations which raise a real “catch 22” for job seekers. Many companies check job applicants’ credit as part of the background check. Some also check credit histories when employees are considered for promotions.

According to a recent survey done on more than 2000 recruiting managers by CareerBuilder, 29% of employers conduct credit checks before hiring the candidates.

For many years the government and the financial industry used FICO scores and credit history as an indication of trust worthiness. The problem today is that many people are seeking a new job not to better themselves or their current wages but because they simply do not have any wages or the ability to pay their bills.

The issue would seem to be clear from this, without paying your bills your credit will take a hit and you could be viewed as a risk in hiring due to your “trust factor.” As a result, you need to be aware of your rights as an employee and the fact that there are certain Federal and state laws that protect you from just such discriminatory action, more specifically, not being hired or promoted due to your debt.

Few states such as Illinois and California offer jobs that don’t require a credit check.. In this regard, some critics have argued that advocates of public policy and lawmakers are making the checking of credit card a buzz among the job searchers for their own profits. The rising awareness among the people is compelling many states to ban the checking of credit report. As for instance, the City Council of New York has outlawed the checking of credit history of a person prior to offer him an employment.

Now it is important to note that if you have filed bankruptcy, you cannot be discriminated or turned down for a job or promotion due to your bankruptcy filing. Pursuant to 11 U.S.C. § 525(b) “No private employer may terminate the employment of, or discriminate with respect to employment against, an individual who is or has been a debtor under this title [bankruptcy code]… solely because such debtor … is or has been a debtor.”

It does not mean that if having good credit is an essential function of the position that you cannot be turned down but it must be as a result of your credit and not specifically because you filing for bankruptcy. In fact, it should be noted that in many cases filing for bankruptcy, especially Chapter 7, your credit score may be higher within six months of your discharge then it was the day before you filed for bankruptcy.

How to Grab Jobs with Low Credit Score?

So what can you do to combat your financial history? First, you need to know what is on your credit report. You have a right under the law to request free of charge once a year your credit report. You should do this. Review your report and know what is on it. If there is something incorrect: dispute it. If there is something negative, but true, be prepared when you interview to discuss it and have an explanation as to what happened and how it does to reflect your normal financial practices. If you live in Maryland or six other states, there are laws that limit if not outright stop an employer from reviewing your credit report as part of a background check.

What Jobs are there for you with Bad Credit?

Nurse, administrative assistant, and teachers are some of the jobs that don’t require a credit check. Though the employers shouldn’t consider your credit report as the golden standard of your performance, yet you won’t be considered eligible to apply for a finance-related job with bad credit. To know about other occupations where the employers don’t consider credit card score, click here.

The Conclusion

Finally, if you believe you have been discriminated as a result of any activity that is allowed under the law such as filing for bankruptcy, or realize your debt is harming your ability to obtain subsequent employment, speak to an employment discrimination or bankruptcy attorney today.