Cet article a été précédemment publié sur le site Bobby Finance.
How A Bad Credit Report Can Slow Down Your Career
As I explained in the article “what is credit rating”, a credit rating is a grade that is attributed to a person, an institution or a state in order to measure their ability to repay their debt at a specific point in time. This grade can improve or deteriorate depending on the financial health of the borrower.
Today, I want to share with you the importance of having a good credit score throughout your life. Amnesty Bank was about to hire Henry, a 23-year old graduate with a master in finance and a great potential. His interview went very well and the team was very eager to work with him. However in most financial institutions, every candidate has to go through a security check before they integrate the company. This procedure is done in order to verify the person’s background, previous employment references, criminal record and credit report. Most of the time this step is just a formality, but in Henry’s case, his candidacy ended up being rejected because he had a poor credit score. Indeed:
- One of his accounts was rated R9 which means a bad revolving debt (unpaid credit card), placed for collection or bankruptcy.
- Several payments were due on an installment loan he took at an electronic store.
Several reasons could explain Henry’s poor credit score:
- Maybe he overspent and he had a hard time repaying his debt; or
- He applied for a loan to help a friend who defaulted on his payments;
- He may have moved without giving a new address;
- He could be in litigation with his landlord
- He could be victim of a fraud or an identity theft
The fact is whatever truly happened; Henry may not be able to work in most financial and governmental institutions for at least 7 to 10 years, which is the amount of time the information stays on a credit report.
The lesson I want you to learn here, is that whether it is your fault or not, the different factors that affect your credit rating are under your responsibility. Because of a bad credit report, you can be denied access to credit products or you may be charged interest rates on loans and credit cards that are higher than the average. In a worse case, you may even have a hard time landing a job, particularly in finance and public service. Fortunately there are several ways one can remedy to this situation. Read 10 Tips to improve your credit score for tips to help you avoid or improve a bad credit rating.
Cet article a été rédigé par Meinna Gwet of BobbyFinance
Meinna Bio : Je suis la fondatrice de Bobbyfinance.com, un site qui éduque les jeunes professionnels et entrepreneurs sur les bases de la finance, de l’économie et des affaires. Afin d’encourager le développement des communautés et de la relève d’affaires, Bobby finance se distingue par une ligne éditoriale axée sur la compréhension du système économique globale et son impact sur l’individu moyen.