Would you do a background check on yourself BEFORE you apply for a new job?

When applying for a new job, it is common practice for companies to run a background check before finalizing the deal. Such reports provides the employers with information about criminal records, education and employment history and financial records such as credit reports.
Prospective employers use credit reports to judge how responsible and financially stable you are. Your actual credit score is not given however how much credit you have, how much credit you are using and If you are late with your bills – does show up. Basically, they get all the information that goes into making up your credit score, but not the score itself.
So, does it makes sense to know what a future employer will see on your background report? 
Would you want access to a background check before you apply for a job?



The best way to be prepared is to run your own, especially if you’ve never had a background check done before, or haven’t for a long time.

What you should do if you get a collection account on your credit.

Here’s the first thing you should know about debt collection: The people calling you are not the people you borrowed from. In actuality you are talking to someone who purchased that debt for pennies on the dollar and is trying to make a profit on it.

If you have a collections account on your credit report it is important to know how this will affect your credit score and what you can do about it. 

Let’s start with the basics… What does it mean for your credit?

If you have a collection account, your credit score may drop by a substantial amount. It typically is correlated with how high your credit score is.  Therefore, the higher your score the more points you can lose.

As you know, having your credit score drop from having an account in collections can impact your financial future.  You could be denied for credit cards and loans.

Realities of overdue debts…

The truth is a creditor could sue you and win a judgment, allowing them to garnish your wages or hire a sheriff to come get your property. However, the chances of this are slim.

Many consumers feel overwhelmed by their debts and file for bankruptcy because they think it is their only option. DON’T DO THIS!  This should only be considered once all other options are exhausted.

What should you do?

Call or email me, asap! Through a careful analysis of your situation, I can determine the necessary steps to settle your debt and move toward rebuilding your credit.

-Erik Kaplan

Coming Soon!

How a business credit card could impact your personal credit score

If used the right way, a business credit card can help improve both your business and your personal financial health – which ultimately can lead to more attractive opportunities to grow your business. 

Does a business credit card impact my personal credit score?  

As with personal credit cards, if you’re paying your bills on time you can expect to see nothing on your credit reports. However, if you or your employer are not paying credit cards (in your name) on time or missing payments expect to see negative marks posted on your credit report and watch as your personal credit score drops.  This is also true for your employees. Make sure you trust your employer/employees before signing for that credit card. 

How does personal credit affect business credit? 

Let me start off by saying there are significant differences between a business line of credit and getting a business loan. When talking about business loans, personal credit scores work the same way as with any other type of lending. Typically, anything less than a 660 and you will have a hard time finding an “A” bank lender with favorable terms.  A score of 720 or higher gives you a much better chance at approval with more favorable rates and terms. Using personal credit for a business loan or credit line is common if you run a small business or a start up. You can boost your personal credit score and your business credit score by making payments on time and keeping a low balance in relation to your available credit. Experian recommends keeping your balance at 20% to 30% of your credit limit. 

Do you need help with building up your business credit? 

One of the first things new businesses should do is start a business credit in the company’s name.  Like your personal credit, your business has its own business credit scores and reports.

We can help get your Dun and Bradstreet (D&B) business profile and a paydex score of 80! We also can help get you business credit cards and get negative items removed from your business credit. 
Give us a call or email me today!

THD Credit Consulting  ・ (800) 822-7120 ・kaperik@gmail.com

Your long-term financial success is my goal. Sign up here to get tips, practical information and lessons on credit repair delivered to your inbox every month. 

Employer Credit Checks: How do they affect you?

Hey it’s Erik,     

In most of the country, a potential employer can review your credit report as part of their application process.  Some employers also conduct credit checks on existing employees, often when they are considering a promotion.
The reasons potential employers like to see this information is the belief that long history of unpaid bills, foreclosures and delinquencies could be indicative of a lack of responsibility and the decision making skills that could affect job performance.
Employer Credit Check Regulations
Access to your credit report is governed by the  Fair Credit Reporting Act , which sets the limitations on when and by whom your credit information can be accessed. The FCRA sets a few restrictions specifically on employers who are using credit reports to screen new job applicants.  
When your information is requested, credit bureaus will send over a variation of your credit report meant specifically for employers. This means that they won’t see quite everything that a lender can see – like your credit score.
What are employers looking for?

In simple terms, employers are looking to reduce their risk.  A history of negative public records or other  derogatory marks could indicate to employers that an applicant has a record of untrustworthiness or unsavory behavior.   A credit report completely free from late payments and any other negative marks can indicate to an employer that you have the financial maturity and responsibility to handle the position.
What can you do?

Here’s where being proactive can work in your favor. Before you begin your job search, it’s a good idea to pull your credit reports to look for errors and identify negative items. If there are errors on the reports, you can get them fixed before there ‘s a chance they’ll harm your potential for being hired. Similarly, if your reports have negative information that’s accurate, you’ll want to see if you can get it fixed before an employer sees it. If you can’t, address it upfront with the potential employer.
While employers do not receive your credit score with employment credit reports, your credit score can be a good reference tool for yourself as you work to build or maintain your credit.  If you see an unexpected drop in your scores, it’s important to check your credit reports for errors or even signs of fraud.
If you have questions about employer credit reports, give me a call and we can discuss steps to dealing with these potential employers.
Until next month,
Erik Kaplan
(800) 822-7120
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