You can pass a credit check for a job by disputing credit report errors, catching up on past-due bills, and proactively giving the employer context to help explain problem areas from your credit history. Having a credit card that reports positive information to the credit bureaus each month will help, too.
Employers are generally looking for candidates who are trustworthy. A strong credit history exhibits that quality. Conversely, poor credit may indicate that you are in financial duress, which could potentially lead to you committing fraud or theft.
- Check your credit report for errors – Errors can adversely affect your credit, so it’s important to regularly check your credit reports to confirm all the account details and entries are correct. If there are errors on your reports, you can file a dispute with the major credit bureaus directly. The bureaus typically respond to dispute claims within 30 to 45 days.
- Keep your accounts in good standing – Payment history is the most important factor affecting your credit. Paying your bills on time showcases your ability to use credit responsibly. If you are in the market for a new job, you should not skip any upcoming payments.
- Pay down balances to ensure your utilization is below 30% – Credit utilization compares the balance on your billing statement to the account’s spending limit, for each of your credit cards and other lines of credit. Keeping your utilization ratio under 30% protects your credit. If your credit cards or lines of credit are maxed out, it could be a sign you are facing financial hardship or you mismanaged your finances.
- Limit your credit card applications – Applying for a number of credit cards in a short time span can also suggest you’re facing financial difficulty. Ideally, you should wait at least six months to a year in between applications.
- Explain any issues on your report to your potential employer – If there are certain areas you know are weak spots, it may be best to offer an explanation before your potential employer reviews your credit report. You can provide context that may not be available otherwise.
You can check your credit report and get personalized credit-improvement tips for free here at WalletHub.
This answer was first published on 01/31/23. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.
