Is Your Job in Jeopardy Because of Credit Checks?

Is Your Job in Jeopardy Because of Credit Checks?

Many companies today, from small to large multinationals, perform credit checks as part of their background check process in order to determine the eligibility of potential candidates. It’s no secret that some companies even tend to ask their employees to provide their credit reports in order to determine whether or not they are suitable for a promotion.

Credit checks can positively or adversely impact your chances of getting hired for an open position. They allow the employer to better understand your money spending habits. So if you have bad credit in your report, and are currently employed, this article will help you understand whether or not your job is in jeopardy.

Credit Report

Remember that your credit report can only be seen by your employer or potential employer when you grant them permission. If you are currently employed, your employer may ask for your credit report for various reasons. If you want to get your free credit report, you can visit Experian or any other major credit reference agency’s website.

Your credit report may impact your job status when:

  • You are applying for a new job
  • You are in line for promotion
  • Your employer is conducting routine credit checks of existing employees.

Your credit report with entail details of any credit accounts, loans, mortgage, delinquencies, liens, judgments, and bankruptcies of the last six years. It also includes record of your repayments which affect your credit score. So if you purchased clothing worth £1,000 using your credit card, it will appear on the credit report for your employer to see.

Impact on Job Status

How your credit report impacts your current job status will depend on several factors. For instance, if you want to take out a loan from your employer, then a credit check will enable them to better understand your ability to repay the loan.

This is important because some individuals may have good monthly income but may be in debt and have high monthly expenses. As a result, they may find it difficult to keep up with their existing debts and expenses.

Consider a different situation. You are being considered for a managerial role in the finance department. Now when the employer conducts the credit check, they will look for a positive credit score and good track record of repayments on debts (if any).

Now if you have a poor track record of managing your personal finances, then your employer may not consider you for promotion. So basically, the credit check has limited your growth potential. Also, it goes without saying that having a bad credit score and a career in finance will make it difficult for you to find employment, let alone seek growth opportunities.

In Conclusion

Credit checks are generally conducted by large employers, as smaller companies do not have such strict requirements for candidacy. Regardless of where you work, if your credit score is improving as you gain financial stability; it will positively impact your employment.…

Things You Need to Have to Get a Hire Purchase Approved

Things You Need to Have to Get a Hire Purchase Approved

After exploring the market and shopping around with different dealers, you have finally decided to finance your car through Hire Purchase car financing option. It’s the best deal that you can secure and you feel all too excited about embarking on a new journey on wheels.

But, you are a little nervous.

“What if my application for HP gets disapproved?” you wonder.

Don’t worry for we are here to help you guide through all the pre-requisites that you need to make your application get the needed approval.

Check Your Credit File

The first thing that you need to look at before submitting the application for a HP scheme is your credit file.

Bad Credit

Look at your bank account details, previous credit transactions, status of different debt accounts and all your line of credits. This will help you in forming an opinion about your credit score. If you have a bad credit, try to resolve it if possible before applying for a HP scheme. If you think it cannot be repaired, include a notice of correction along with that particular line of debt.

You can also boost your chances of getting the application approved if you have bad credit by applying for a joint car financing deal.

Other Specifics

It’s not only your current and previous credit status that can affect your credit score; it’s also other specifics like your residential address that can have an impact on your credit score. Credit reference agencies sometimes are prone to errors like listing you at an address that does exist. So it is always advisable to thoroughly check all other specifics on your credit file along with financial data to avoid any mishap.

Check Your Finances

Next thing you need to look at is the finances that you would need, first of all to pay an initial deposit which is usually 10 percent of the total car value and then the monthly installments that follow it. Since the monthly payments are fixed, you can work out your entire budget that you would be allocating for your car finance and see if you have the means to cover for it.

Organize the Documents

Once you have made assurances that your credit status and finances won’t hinder in the approval of your HP application, you now need to look at the documents that you have to provide along with your application. In this section, we will only look at those documents that can make or break your application process.

Proof of Residence

In UK, in order to get a HP deal you have to provide proof of your UK residence of last 3 years. Failing to do so would definitely impair your chances of getting a HP car finance deal. But if you can provide a genuine reason for that, your application may get the necessary consideration. For instance you may have only moved in recently, so you can provide a reference of a guarantor that complies with the above law.

UK Driving License

Although driving license is not deemed compulsory while submitting an application, not having one can increase the chances of disapproval.

Miscellaneous and the Sundries

Apart from that you will have to provide with your bank statements, personal details and proof of income.

Getting your hire purchase approved is nothing to stress about. It can be achieved easily as long as you remain honest in your dealings and account for what you are applying for.…