While most of us today are aware of the importance of maintaining clean credit, with the new economy the stakes are raising. Today your credit report is being evaluated more closely than ever and increasingly your credit score is used as measure to define you. For example, with a score over 700, or better yet 760 plus, you are "solid" and "reliable." However, with a bad credit score, you are "unreliable" and "a risk."
Recently I phoned a national cell phone provider to obtain a quote. After touting their superior nationwide coverage and innovative phones, the outgoing salesperson politely informed me that in order to give me a quote, he would have to check my credit score. "Standard procedure," he continued. The reality is that by pulling credit, companies are essentially assessing their risk. Because to them, the credit score is very "telling" in terms of what kind of customer you might be. A low score tends to be synonymous with irresponsibility, while a higher score indicates good risk and may even give you a break on your monthly payment.
Would you be surprised if at the end of a job interview, your prospective boss asked permission to check your credit report? According to the Society for Human Resource Management, around 35% or more of future employers are looking at their job applicant's credit score. This is true especially if you plan to work in the financial sector, but also across the board, a mediocre or poor credit can hypothetically mean you could be a risky hire.
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