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Flipping Houses: Turning a Wreck into a Gem


About Me

Flipping Houses: Turning a Wreck into a Gem

Five years ago, I decided to start my own side business. Along with keeping my job as a construction worker, I decided to use my savings to purchase an older residence. The plan was to fix up the place and then sell it at a profit. It didn't take me long to figure out that while my side business would take up most of my free time, it would make me a lot of money. Today, I still flip three or four houses a year. My strategy developed through trial and error, and I've learned how to evaluate the potential of a property first, then buy second. I know what must be done in the way of exterior painting, making the place secure, and ultimately finding the right buyer. If you are thinking about trying this kind of sideline, read on. What I've learned will help you a lot.

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How Does Your Credit Score Affect Employment Screenings And Vice Versa

When applying for a job, there are a wide variety of details to consider, and your credit rating is often an important one. Unfortunately, recent data has suggested that about one out of five people in the United States have extremely poor credit. Since a low credit score can keep you from getting the job or promotion that you want, it is crucial for you to know the truth about your credit score and how it can impact your employment opportunities.

Will Repeated Inquiries From Prospective Employers Ding Your Credit?

You may already know that whenever you apply for a line of credit, the act of simply having your credit report accessed by a third party will often impact your credit score. Doing so occasionally is not a problem, but if several banks or lenders look at your credit report or score within a short period of time, it could lower your score. The good news is that if your credit is evaluated due to an employment screening, there will be no impact on your credit rating.   

What Type Of Job Is Most Likely To Require A Good Credit Score?

If you have ever read the fine print on many job applications or employment websites, you may have noticed a warning that your credit report can be evaluated as part of the employment screenings. When you already have bad credit, that warning can be terrifying. Before you waste your time applying for a job you cannot get or skip applying for a job you would be ideal for, it will be helpful to know what positions are the most likely to require good credit.

If you are applying for work in the banking or financial industries, employers may expect you to have good credit since you will be working with other people's money, credit, or debt. If you are aspiring to be in an upper-management position like Chief Engineering Officer or District Supervisor, your credit may need to be pristine due to the amount of responsibility and financial access you will have as part of the job. If the job in question will bring you into close contact with private information about people, like income, credit ratings or employment records, good credit may also be necessary, since some employers often believe that your credit score relates to your overall trustworthiness. 

What Can You Do?

Although making acceptable, affordable arrangements with your creditors to pay off your debt will obviously improve your credit, doing so can be time-consuming and is unlikely to help your credit rating immediately. Instead, you should also obtain a copy of your credit report from each of the three credit reporting agencies. You can get that report once a year for free. It has been estimated that about one out of four people have at least one mistake on their credit report, and just one mistake can lower your overall rating.

Otherwise, your best shot at your dream job is often just being honest about the blemishes on your credit score from the beginning. If they are going to run your credit, they will see the problems anyway; and, explaining the problem before they see it may help you win respect for your honesty. It is also important to note that if your credit report was run as the result of applying for work and it negatively impacted your employment possibilities, you have to be informed in writing of that decision and any pertinent information, like your credit report, that impacted how that decision was made.  

In conclusion, many hardworking Americans have experienced problems with their credit in recent years. If you are worried that a low credit score will keep you from getting the job or promotion that you want, the above answers can help you plan for the future.