How Bad Credit Impairs Your Advancement in Business

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Personal Credit is still a very poorly understood subject, even among people who make a lot of money. Lots of people think that strong income will prevent them from having to pay much attention to their credit. In reality, this kind of thinking tends to shoot people in the foot. Personal credit may not directly impact your earnings and advancement, but it could hold you back in insidious ways that are hard to identify. Many people learn this stuff only after it is too late. Work to improve your credit, and you may find that your career advances in ways that would be difficult without that change.

In the old days, employers were allowed to look at the full credit histories of potential hires. It was a way to help them determine who was reliable and who was not. All other things being equal, the employer would be more likely to hire someone with a great credit score than with a mediocre one. The problem was, this didn’t always tell the whole story. Sometimes people have legitimate problems that lower their credit scores, which in no way indicates their quality as an employee. Today, your employer cannot check your credit score, but they can look at an amended credit report. It is a very real possibility that poor credit history could prevent you from getting a promotion or getting the job of your choice. If you are equally matched with another candidate or candidates, credit may be the deciding factor.

That may be enough to convince you to rebuild your credit. The credit people reviews will give you some clues about how this is best accomplished. But there are more ways in which bad credit can impair your career progress. Credit health determines the interest rates people receive for loans. If you have bad credit, you may be charged a lot of money in interest to make up for the possibility that you will default on your loan (The kind of behavior that resulted in your bad credit in the first place). If you get poor interest rates on home and auto loans, you’ll pay much more for these things than your friends with good credit. These additional payments to credit cards, mortgage lenders, and auto sellers often total tens of thousands of dollars (or more!) over the course of a lifetime.

If this is your problem, you can clearly see how you’d be able to afford less. You won’t be able to live in as nice a house, drive as good a car, get education at the quality you wish, or set up your offspring for the best possible success. All of these lifestyle factors have important impact on how you are able to advance in your career. While the car you drive may not indicate your core competency on the job, these visible status symbols are real factors in getting people ahead in certain lines of work. If you can’t keep up financially, you might not be able to keep up in your career path. For all of these reasons, having a healthy credit history and score is vitally important. 

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About the Author: Waqar Hassan

Member Since: 03/09/2014

Company: Burgeoning Technologies

Industry: Technology

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