Debt Management and Your Credit Score

Applying for a Job: Why Do Companies Carry Out Credit Checks?

If you’re interviewing for a new job, learn why a company may carry out a credit check

woman on her tablet checking her credit score as her company will be checking too

Companies recruiting staff will go through a rigorous process to make sure they get the right person for the job. Many recruitment processes involve filling out applications, interviews and even aptitude tests.

However, many companies are now using credit checks to get a more rounded view of a candidate. A credit check can give a company insight into a person in several ways, and they are not all money-related.

And it’s not just jobs that involve finance where companies may take a credit check into the account. They may view your credit report as a way of gauging your overall judgement in several different areas that could be applied to the job in question.

Management and Decision Making Skills

One of the main reasons credit agencies exist, is to provide details on how you have repaid the past debt. While this is useful for providers of financial products to assess your suitability, it can tell prospective employers a lot about you.

If a company is seeking to entrust you with many important decisions, they will want to see that you have sound judgement. You may convince them of this through the selection process, but your credit history can also give them a glimpse into your decision-making skills.

A credit report could show that you have had difficulty paying off credit in the past. This can point to issues with money management and your ability to organise your finances. It can also reveal poor decision-making.

If your credit checks show that you have taken on a lot of debt, this may not necessarily be a black mark against you. If you have been managing it well and paying everything off on time and without missing payment, that shows that you can stay on top of things.

Check Your Identity

A credit check isn’t always used to find out financial information about a person. Your credit report will also contain personal information about you. This will include your name and date of birth, as well as your address. It will also contain details of previous addresses.

Even the credit you have taken out, such as loans and credit cards with a specific provider can help credit companies verify your identity by cross-checking them with other information about you.

Problems can arise in credit reports when a credit agency holds old personal information. This could be a previous name you went by if you have changed it after getting married, for example. A credit report may also be incomplete if it doesn’t have details of previous addresses you lived at.

One of the best ways to ensure that the personal information a credit agency holds about you is up to date is to make sure your name is on the electoral register. This source is used by credit agencies to verify a person’s identity, so you should make sure you are registered to vote.

Alternative Accounts with Suits Me®

Here at Suits Me®, we’re an alternative solution offering a comprehensive e-money account. Our accounts are personal e-money accounts which work similarly to a traditional bank account, without the overdraft facility. You’ll gain access to an online account and our mobile app, where you’ll be able to manage your money on the go, 24/7.

We offer a whole variety of banking-like features including:

  • The ability to set up standing orders and manage direct debits,
  • Send money within the UK via a transfer, international transfers are available via a partner in the Suits Me® app,
  • Gain access to our exclusive cashback reward programme where you’ll automatically get a percentage of your money back when you use your Suits Me® debit card with our retail partners.

Opening a Suits Me® account takes 3 minutes and you’ll gain access to your online account immediately so you can start managing your money. We don’t ask for proof of address or run a credit check. We accept 99.8% of all applicants – so if you’re looking for a suitable alternative solution apply today! Open Your Account Today

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