3 Work Related Negative Impacts On Your Credit
In a time of relatively high unemployment, most working men and women feel grateful just to be gainfully employed. But most people may have never considered that the way the company they work for is managed, and even the job search itself, may actually have a negative impact on their credit scores. No one should have to choose between having a job and having an excellent credit profile. Here we will take a look at some of the most common ways your job can affect your credit.
- Long company reimbursement periods – Many people have to make purchases in relation to their work, and are reimbursed by their employers down the road. An example if this is when an employee has to rent a car or pay for a hotel on a business trip. When these reimbursements are quick, there may be no harm. But when you place significant work related charges on your credit card, and your company does not reimburse you quickly, this can cause you to have a high debt to income ratio – which can negatively affect your credit score. It can also cause you to pay the card late, if you do not have the funds for the minimum payment.
- Seeking a promotion – If you are applying for a promotion or another position with your company they may run a credit report on you, especially if the new position is sensitive in nature. This inquiry on your credit report can cause your credit report to be negatively affected, especially if you apply for several positions and the company pulls several credit reports.
- Searching for a new job – Because many companies conduct a credit check in order to help gauge an applicant’s employability, applying for multiple positions can cause the same problem as seen above.
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