Unemployed? Get a (Free Credit Report UK)

If you're in the job market, it might come as a surprise to find out that even if you got a job offer it could all be derailed when they pull your credit report. A poor credit score impacts more than just a loan application. It is being used by landlords to check creditworthiness and employers to determine whether a new job applicant might be in financial trouble. While it may seem unfair to those that are unemployed, it's even more important to manage your credit history when you are unemployed than when you are employed. Take advantage of a free credit report if you think a position is in the works so as to fix problems before they cost you a job.

Problems paying your bills on time

Unemployment benefits don't tend to be enough to cover the loss of a full salary. This can have a huge impact on how your pay your bills. Late or missed payments will be noted on your credit history and bring your score down. However, if you know ahead of time whether you will be suffering a loss of income, you can call and negotiate payment plans with your creditors instead of just ignoring accounts and causing your credit history to get out of control. While employers may be willing to overlook a few late payments, but if an account goes into default your chances of getting hired may go down with them as well. Most lenders are willing to help their customers maintain their financial obligations and have hardship programs that can lower your monthly payments or interest charges for a period of time. However, it is up to you to call them and request that sort of assistance the minute you realize you will have trouble making payments.

Lack of money does not mean you can't get a credit report

Luckily, you are allowed to get a free credit report UK every year, if you have a credit card. Credit monitoring agencies regularly offer a 30-day free trial to people who sign up for their services and give their credit card information. That's just another good reason to keep your debt accounts serviced as best as possible. If you max out your credit cards, you will not only have trouble repaying the debt while unemployed, but you will also not be able to use them to get a free credit report. Then, you will have to pay £2 and wait seven days to get your credit report through the mail.

Credit monitoring will help you rebuild your credit too

Even if you weren't able to pay all your bills on time during the time period you were unemployed, you will be able to have a chance to rebuild your credit after you get a job. Your free credit report UK will be the first step towards finding out how much damage that period of low income has affected your credit score. The good news is that once you start getting back into a regular cycle of making your bills on time, your score will automatically increase. You will also be able to settle debts that may have defaulted and negotiate a payment status of 'paid in full' to help you bring your score up even after a default. Don't assume that once you've damaged your credit that it cannot be fixed. Even people who have suffered bankruptcies and foreclosures have managed to rebuild their credit once they were back on their feet.

Your credit is more important when unemployed

For a variety of reasons, keeping a good credit history is even more important when you are unemployed than when you have a cushion of emergency cash from your job to fall back on. However, the biggest reason to make sure you don't lose your good credit rating during a bad spell of unemployment is because employers now pull the report to make hiring decisions. People who work with money on a regular basis have more opportunity for fraud than those that don't and if employers see a bad credit rating they assume they will be more likely to commit fraud against them. However, you don't have to be in a financial position within a company to have a bad credit rating ruin your chances of employment. There is no law saying a company can refuse to hire you because they don't like what they see in your credit profile and so they can do whatever they please.

Claire Molyen the author of this article recommends to her readers looking for a free credit report uk to visit the uSwitch.com website as it offers the latest information and advice.