No one enjoys being judged, especially by credit reports. Of course, that’s exactly why your credit reports and credit scores exist — to give others information that may ultimately be used to judge you and your credit worthiness.
Your credit reports are full of information about your past and present credit management habits. That credit information is then used by many companies to judge whether or not they wish to do business with you, and under what terms.
You may not like it very much, but you’re probably already familiar with the fact that most lenders will take a look at your credit reports and credit scores before deciding whether to approve or deny your new loan or credit card application. To a lender, your credit reports say whether or not doing business with you is a good risk.
Yet lenders aren’t the only ones who judge you by your credit. Landlords, insurers, and employers, among others, may want to hear what your credit reports and credit scores say about you.
Will You Make a Good Employee?
Credit reports, not credit scores, are often used by employers to assist with hiring decisions. “But John,” I can almost hear you saying, “My credit has nothing to do with whether or not I’d make a good employee.”
While it’s true that you might be able to do a job just as well as the next person regardless of your credit, the fact remains that your credit reports can and will often be used by employers to assist with hiring decisions, whether you find the practice to be fair or not.
Your credit reports give employers an insight into your level of responsibility — whether you have a track record of paying bills on time and managing debt responsibly, or you tend to miss payments and overextend yourself financially.
Furthermore, employers are sometimes concerned that employees with credit and debt problems could be more likely to steal from them or accept…