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How to Deal With an Interview When You Have a Low Credit Score

By: Gary Frazier

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Because today's jobless rate is approaching 10%, quite a few individuals are not paying their obligations on time. Here is what happens to nearly all people in this situation: They don't have revenue coming in so they rely more on borrowing from credit cards. When they get behind on making payments, lenders,creditors,bankers raise the interest rate and remove the amount they can borrow. Consequently that causes their credit rating to drop. The end effect is that it is very difficult to land any employment.

Companies look at FICO reports to find information that would imply an individual may possibly be a security risk. For example, the reasoning is that an individual who is financially unstable may be at a higher risk of defrauding the company. Here's how companies look at FICO scores: lower than 700 = warning, lower than 650 = concern, and below than 600 is a red flag warning. Many businesses try to ignore FICO scores but some businesses like banks and other financial institutions are not so compassionate. If you are applying for a city, state, or federal job, you can expect to have a credit and background check done.

How can you deal with a low credit score?

1. Know your rights.

Institutions are obligated to get your permission to do a credit or background investigation. And they have to inform you if you weren't given the job because of your bad credit score. They also have to tell you which credit reporting agency they used to investigate your credit.

The Government drew up H.R. 3149 in July of 2009 which is a bill meant to stop companies from doing credit investigations on possible employees. You can find updates on this bill at www.govtrack.us.

2. Get a copy of your credit report before you apply for a job.

Once you obtain a copy of your credit report, look it over for mistakes.

3. Be honest and upfront with possible employers.

When the topic comes up, advise the interviewer what you have done to improve your FICO score. That proves that you are responsible and a "get it done" kind of person.

4. Improve your FICO score the best you can and as fast as you can..

Question any erroneous or negative remarks with the appropriate credit reporting agency. There are legal Credit Repair Report businesses that can do credit repair for you.
Here are a number of things you can do to improve your FICO score:

* Get your obligations current.
* If you are already behind on payments, call your creditor and negotiate some kind of repayment plan.
* Don't stop paying your bills -- make the ones in collection your priority.
* You can increase your FICO score by 20-30 points by making your obligations on time for two months in a row.

Article Source: http://depositarticles.com/

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