Once upon a time, in a land not so far from where you’re standing, (heck, it might even be exactly where you’re standing) the only thing a potential employer could know about you was what you put on your resume. Filled with information gleaned through references and the few details you chose to reveal during your interview(s).
Related:Can Bad Credit Make You Unemployable?
Those days are sooooo sooooo over. Today, a potential employer has no qualms about checking your social media profiles (which is why many believe that social media is the new resume). Some people have even reported that potential employers have asked for their social media passwords so that they could get a look at profiles that had been made private.
(NOTE: No matter what a potential employer tells you, you are NOT obligated to share your password. In fact, asking you for your Facebook password (and your sharing it) is a violation of Facebook’s Terms of Service.)
It doesn’t stop with your social media presence or online reputation. Some employers will also go as far as checking a candidate’s credit before they decide whether or not to hire someone. The primary thought behind this practice (while miles away from foolproof) is, "If you can't be trusted with your finances... how can we trust you for this job?"
How do you like them apples?
Here’s the thing: It might, for lack of better cliché, 'chap your hide' that your potential employer wants to do a credit check (and, to be fair, you do not have to allow them to do so… but if you’ve already handed over your social security number you probably can’t stop them from doing it), but having bad credit isn’t just bad for your job prospects. Letting your credit stay bad is terrible for your livelihood and your personal financial health, too. But you already know that.
If all of this sounds like a myth or an urban legend, you need to know that it is not. Last summer CNN investigated the rumors that employers were using credit histories to deny employment. In addition to several interviews, they cited a study that found that one in ten people had been denied a very hoped for job because the potential employer didn’t like what they found when they ran a credit check. Those are some scary statistics! So what do you do? How do you make sure that your credit status doesn’t cost you that job that you need so much?
Dealing With Bad Credit: Where To Start
You’re allowed to request one free credit report from each of the major credit reporting agencies every twelve months. Do that now! Go through your reports and make sure all of the information is accurate. If there are mistakes, dispute the information so that it can be fixed or removed from the report completely.
Now: Look At Your Debt To Income Ratio
When you’re finished throwing up, it’s time to sit down and make a budget. Gather together all of the information you can find about your existing debt and monthly bills.
Add together all of your minimum monthly payments (add 10% to them so that you can actually start paying down your debt instead of letting it sit stagnant) and the highest amount you’ve ever paid for your monthly utility bills, your rent, what you spend on food, and so on. This is how much you have to earn at a minimum every month just to break even. This is why you need that job.
Before you panic, there are things you can do right now to make your budget more manageable.
Reducing Your Debt Before You Pay Your Bills
It is absolutely possible to reduce your debt and the amount of money you pay to your different creditors every month, even before you make a single payment. Here is how you do that:
Call up each of your creditors and ask them for a lower interest rate and a lower minimum monthly payment.
If your accounts are all in good standing, most creditors are willing to do this without giving you too big a hassle over it. If they do hedge or, worse, offer you a higher credit limit, talk to them about potentially closing your account (if that’s possible—sometimes, like with a car loan, it isn’t). Most companies—especially if you’ve been good about paying on time each month—would rather reduce interest and lower payments if it means keeping your business.
If they do say that it would be better to close your account, try to negotiate a lower pay-off amount than what is listed on your current amount due. Some companies will take away any interest you’ve been charged because they would rather get something from you than nothing.
If you aren’t confident in your negotiating skills or if your payment history is sketchy, don’t panic just yet. You might not be able to do all of this negotiating yourself but there are companies out there that you can hire to do that for you.
Credit repair companies exist to help people with bad credit or an overwhelming amount of debt, settle what they owe and make sure that it gets paid off responsibly. These companies act as the “middle man” between you and your creditors to make sure everybody gets paid but at a rate you can afford. Often these companies charge a fee, but you have to weigh credit repair cost against the hassle of trying to do all of that work yourself.
It is important to understand that, in some cases, working with a credit repair agency could be a blemish on your credit record. How big a blemish it is depends on who is doing the looking. Most employers, for example, will appreciate that you’re getting help when you need it and that you’re trying to handle your debt responsibly (instead of trying to declare bankruptcy or something else disastrous).
Once you’ve got your current debt settled, however you choose to do that, and you’re back on financially responsible ground, it’s time to work on building your credit score back up. There are a lot of ways to do this (if you’re working with a credit repair agency, they might have already started you on that path). This way not only will you never have to worry about what a potential employer will think when he or she pulls up your credit record, you’ll never have to worry about things like mortgages, loans, and so on.
Remember, though, you do not have to allow a potential employer to check your credit. You are absolutely within your rights to say no.
This post was originally published at an earlier date.
Is your job search turning into a grind with no end in sight? It may be time to take a step back and reevaluate your entire approach.
In cold weather climates, the beginning of spring is a time to clean the house and get organized—a practice known as spring cleaning. Through the years, spring cleaning has taken on a larger meaning with people using the time to organize and declutter things in their lives.
For professionals on the job hunt, a little spring cleaning (metaphorically speaking) could be a great way to reinvigorate your job search. Here are a few strategies your job search spring cleaning should include.
Reevaluate Your Job Search Approach
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Make a list of the last handful of jobs you applied for and see if you can identify any positive or negative trends. Consider things like:
How did I learn about this job?
How did I apply for the job?
Did I earn an interview?
What was the ultimate result?
A lot can be learned about your job search approach just by answering these questions and identifying patterns. For example:
Negative Trends
You discovered five jobs through job boards, applied to all of them via the job boards, and never heard back from any of them.
The common pattern here is applying through job boards. This isn't to say that job boards don't serve a purpose in the job search process, but they have their limitations, and you can't run your job search entirely off of them. When you apply through a job board, there's a good chance that your materials will never get past the applicant tracking system (ATS) and never be seen by an actual person.
One simple fix is to research who the hiring manager or recruiter is that posted the position and email your materials to them directly.
The more efficient fix would be to take a proactive approach by putting together a bucket list of companies that you want to work for and start making connections on LinkedIn with people who work at those companies. You may already know some people who work there or have connections that can refer you to some individuals.
This is a great way to network your way onto a company's radar.
Positive Trends
You applied to three jobs via referral, were invited to two job interviews, and made it through multiple rounds of interviews for one of the jobs before being passed over for someone with a little more experience.
The pattern here is that getting referred to a job by a professional acquaintance is a great way to land a job interview. This indicates that you're leveraging your network well and you should continue to focus on your networking efforts.
The next step is to review the interview process and determine what went well and what needs to be improved. Sometimes the interviewer will provide feedback, and that feedback can be valuable. However, not everyone is comfortable with giving feedback.
Chances are you probably have a good idea about areas of improvement and the skills you need to gain. Put together a plan for addressing those shortfalls.
The good news in making it deep into any interview process is that it indicates that the company likes you as a potential employee (even if the timing just wasn't right) and the experience could be a roadmap to a job with that company at a later date, or another similar opportunity elsewhere.
Give Your Resume & Cover Letter Some Much-Needed Attention
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Are you continuously sending similar resumes and cover letters to each job opening with only minor adjustments? If so, your strategy needs some serious spring cleaning.
The reason why it's so important to tailor your resume is that throughout your career, you acquire numerous skills, but the job you're applying for may only be focusing on 6-8 of those skills. In that case, those skills must rise to the top of the resume with quantifiable examples of how you successfully used those skills at previous jobs.
Remember, recruiters go through hundreds of resumes. They need to be able to tell from a quick glance whether or not you're a potential candidate for the position.
While updating your resume, you could also spruce up your LinkedIn profile by highlighting the skill sets that you want to be noticed for by recruiters.
As for writing a good cover letter, the key to success is writing a disruptive cover letter. When you write a disruptive cover letter, you're basically telling a story. The story should focus on how you connect with the particular company and job position. The story could also focus on your personal journey, and how you got to where you currently are in your career.
If your resumes and cover letters aren't unique, now is the time to clean things up and get on track.
Build Your Personal Brand
Just because you're looking for work doesn't mean that you don't have anything to offer. Use previous career experiences and passions to build your personal brand.
Ask yourself, "How do I want other professionals to view me?"
Pick an area of expertise and start sharing your knowledge and experience with your professional network by pushing out content on your LinkedIn and social media accounts. Good content can include blogs, social media posts, and videos.
By sharing content about your experiences and passions, you slowly build your personal brand, and others will start to notice. The content could lead to good discussions with others in your network. It could also lead to reconnecting with connections that you haven't spoken to in years, or making new connections.
You never know when one of these connections could turn into a job lead or referral. The trick is to get on people's radars. So, when you're cleaning up your job search, be sure to build a plan for personal branding.
Maintain Healthy Habits During Your Job Search
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Your job search is important, but it's even more important to know when to pull back and focus on personal health and spending time with family and friends.
There are actually things that you can do for your own enjoyment that could help your job search in the long run, such as:
Grab coffee with a friend - It's good to engage in light conversation with friends during challenging times. And if your job search does come up, remember that most people have been through it themselves and you never know when a friend may provide you with a good idea or lead on a job.
Volunteer - Volunteering is a great way to get involved in the community and help others. In addition, if you develop a little bit of a career gap while looking for a job, you can always talk about how you filled that time volunteering, if you're asked about it during a job interview.
Continue to focus on other passions - Are you a fitness nut? Blogger? Crafter? Continue to do the things that bring you happiness. And if you're in a position to profit from your passion through a freelance job or side hustle, even better!
Spring is the perfect time to clean up and improve your job search so you can land the job you want. If you're struggling to find a job, follow the tips above to reinvigorate your job search—and watch your career blossom!
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This article was originally published at an earlier date.
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