It’s no secret that with the current recession, job markets have become very tight. Even college graduates are sometimes finding it difficult to land employment. These are things you probably already know. However, what you may not know is that credit checks are becoming more and more popular in the job application process.

This was posted in a recent New York Times article. “More than 40 percent of employers use credit checks at least sometimes, according to a 2004 survey by the Society for Human Resource Management, up from 25 percent in 1998. The share has almost certainly risen today.”  Knowing this, it puts even more stress on the recent college graduate to make sure they have, and continue to have, a clean credit history.

One way to help control your credit worries is to budget. This is what is recommended by the Consumer Credit Counseling Service…
• Housing: 38 percent
• Saving, investing, tithing: 30 percent
• Vehicle: 15 percent
• Food: 12 percent
• Miscellaneous: 5 percent for clothing, recreation, insurance
 
You may not have all of these expenses when in college, but it is still important to put together a plan for your income. Also, be wary of signing up for any credit cards once you go to college. They often have high interest rates, and many hidden fees and these can quickly put you in a hole. If you work hard through college with hopes of landing a solid job in the profession of your dreams after graduation, don’t allow a bad credit history to get in the way.

Budget Smart,

Rich