Why a CV is a Credit Check?

The importance of maintaining a good credit check is well known. The inherent system is notoriously swift and blunt for mistakes we make and painfully slow to rebuild. For those that suffer bad credit from historical poor decision making, it may seem impossible to restore your score to great credit!

In short, the system we are bound by appear to be one-way traffic. The key word is ‘maintain’ a good credit history. It’s a like starting on an A and moving down the grades as you take a wrong turn or two! A long as you take credit, pay it back and are a model citizen, you will be rewarded.

On the reverse if you are a little more ‘human’ you may make some sub prudent decisions in your youth. Maybe circumstances have gone against and in the struggle, you took a wrong turn. Or even you were easily sold to and stretched yourself too thin and the nice stuff was beyond your reach?

Whichever applies to you, it is fair to say that what happens in your past, in this system, significantly affects your future. We cannot do much about the system we are born into, but we can agree it is wise to look after the best grade we are on for a better life!

Well this is the exact same for CV’s.

Unfortunately, we are not as aware or as protective of our A Grade in this system as the Credit system. Mistakes that you made previously, you may potentially pay for again and again as your CV is passed over by future employers.

The good news, this can be fixed:

1) The CV can be expertly created to be the best representation of YOU as possible

2) You have the power to fix the errors of your past with your RECENT choices

3) You can be AWARE of the pitfalls of your experience so as to not make them again and LEARN

The first one we can help you with whenever you are ready to make the step. Simply reach out and if it’s needed, we will restore your CV Credit Score through our CV overhaul.

To fix point 2, you will need an advisor to assist you. A Career Coach or genuine expert that is in tune with the workforce will help you evaluate and correct your career course with prudent and relevant advice.

For Number 3, I will share an important statement:

When an employer or decision maker goes through your CV, they are doing a Risk Analysis. They are scanning for reasons to NOT invest in you.

Where are the black marks?

What mistakes have you made that will potentially cost their business money or affect their reputation?

This is the same behaviours and process as a credit check.

Does your historical data provide the information to determine whether you are approved or not?

The comparisons of a bad credit history to CV:

No Credit history = No Experience

This is regarded as a black mark. Yes, you have never done anything wrong, but there is nothing to state what you would be like with an investment.

Recruiters primarily sell candidates on experience as clients ask for this as the standard pre-requisite. With no experience it is extremely hard to sell someone in. Not impossible but very hard.

Late Payments and arrears = Sacked / gross misconduct

This behaviour clearly signifies a high-risk choice for the lender. The credit system is in place to vet for exactly this. Its very hard to get financial backing if you have a track record of these.

The same would apply for employers looking out for the red flags. Any form of dishonest conduct is where most employers strike out.

Refused Credit = Unable to get a role. Search too long – Gaps

The more you are apply for credit without success, the harder it is to obtain. Hindsight teaches us this lesson usually. We are aware to be mindful when making applications. If not and you are successful it may affect the rate you pay.

Sustained periods of time without work or reason have a descending effect on finding a role. Gaps really hurt if there is no justifiable reason for them. Moreover, if you have been looking for work for too long the employer will be asking themselves the question “why doe no one else want them”? This question itself is enough to provoke risk adverse decision making.

The same caution must be observed when apply for work. If you have a shot gun approach to sending your CV it will be noticed. It will make you less desirable and if you are successful potentially have a negative impact on the final salary.

The same caution must be observed when apply for work. If you have a shot gun approach to sending your CV it will be noticed. It will make you less desirable and if you are successful, potentially have a negative impact on the final salary.

Too much credit = Jumping job to job/ illogical progression and changing industries

When going for a Mortgage for example, they look at your current credit. For example, if you have 2 credit cards with a 10k limit each, but no spending on them, the bank will automatically look at the worst-case scenario and treat this as 20k of debt. Thus reducing the limit and/or closing them may help get the home loan.

The equivalent of this would be an abundance of jobs in your timeline. Jumping job to job tells the employer that you will more than likely do the same again. Worst still is if there is little clear logic to this. For example changing industries and types of role. Longevity, progression, specialism and promotions is what appealing to them

To Conclude:

If you protect your CV like your credit history you will be treating it correctly. The paper trail that makes up your career past has a direct influence on your career future. Invest in yourself wisely and protect your AAA status.