Bad Credit And Employment Guidelines

Bad Credit And Employment Mortgage Lending Guidelines

Gustan Cho Associates are mortgage brokers licensed in 48 states

This Article Is About Bad Credit And Employment Mortgage Lending Guidelines 

Credit and Employment are the two most important factors when qualifying for a mortgage.

  • Credit is important because it shows a person’s payment pattern history. Lenders cannot predict the future of a borrower
  • However, a consumer’s past history in paying their bills is a good predictor on how borrowers will pay their future mortgage payments
  • Solid employment shows income stability
  • No matter how strong a person’s credit is, if they have no incoming stable income, they will have a hard time paying their bills
  • This holds especially true with paying mortgage payments
  • Many employers often do a financial background check when hiring new employees
  • Credit checks are often conducted when an employee is considered for a job promotion
  • The reason many employers run credit checks is that they feel that candidates with good credit and higher credit scores are financially responsible
  • Many lenders will view bad credit employees as financially irresponsible

In this blog, we will discuss Bad Credit And Employment and how it affects consumers applying for a mortgage as well as jobs.

How Bad Credit And Employment Go Hand In HandHow Bad Credit And Employment Go Hand In Hand

Is this fair?

  • Bad credit and employment opportunity?
  • Should employers judge your ability to perform in a job by your bill-paying performance?
  • The trend of checking your credit report spans across all industries and is not exclusive to any one type of employment

Employer credit report checks can prevent the nation’s hardest hit job seekers from entering the workforce. Employers conduct these checks for job seekers applying for positions. Employer credit checks are common and they’re keeping people from getting jobs.

How Bad Credit And Employment Affects Job Seekers

The job market has been tough for workers either finding a new job or being promoted with a company that you already work for.

  • Did you ever imagine that you wouldn’t land a job because of your credit report?
  • Well, it is possible
  • If you are looking to change careers, find a new job, get promoted or keep the job that you have a bad credit report can hold you back

A new study shows that one in four unemployed Americans has been required to go through a credit report check when applying for a job. One in ten has been denied jobs due to negative information in their credit report. Six out of ten private employers check the credit history of at least some of their job applicants and 13% conduct them on all candidates.

How Credit Reports Are Analyzed By Employers And LendersHow Credit Reports Are Analyzed By Employers And Lenders

The main reason to check a person’s credit report is to get a sense of the overall dependability of a job applicant. Credit report checks are used to screen applicants for employment positions.

  • Bad credit often is often acquired due to unemployment and the loss of health insurance
  • A negative account on your credit report can be from bankruptcies, charge offs, late payments, foreclosure, judgments, repossessions, liens and collection accounts
  • You can also have errors on your credit report and this can keep you from getting employment positions

Check your credit report so that you will know exactly what is reporting.

  • To keep ahead of your credit report is somewhat a task but once you do this, you will know exactly what is on your report and what you can do to repair your credit report before others see it!
  • The Team at Gustan Cho Associates can help home buyers prepare for a mortgage by advising buyers on what to do to optimize their credit
  • Home buyers do not need to hire a third-party credit repair company
  • There are no costs in Gustan Cho Associates helping borrowers with re-establishing their credit
  • Gustan Cho Associates at NEXA Mortgage, LLC dba as Gustan Cho Associates are a national five-star direct lender with no overlays on government and conventional loans
  • We also offer non-QM Mortgages where there are no waiting period requirements after bankruptcy, foreclosure, deed in lieu of foreclosure, short sale

For more information on this blog, please contact us at 800-900-8569 or text us for faster response. Or email us at

Related> How bad credit can hurt your job search

Related> Is your bad credit keeping you from getting hired?

Related> Hiring and your credit score

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