What Do Chase, CitiGroup and Bank of America Pertain to Your Your Career Search?
Once upon a period of time, credit card issuers typically only trimmed credit lines on customers whose behavior suggested they might develop into a credit risk. For example, late payments, going over an existing credit line, low credit score - those types of things might have triggered the bank to decrease the amount of money they had been willing to lend.
It seems like pretty much everyone is in the crosshairs of the banks.
They're now looking at people who have excellent credit and spotless repayment histories. Customers who never possess a balance (i.e. they pay fully each month), pay on time, and still have FICO scores as high as 830 are receiving letters indicating their lines of credit have been reduced. I know three people fitting that description who have received such notification in the past few weeks.
There are consequences to that action. If you're one of the folks who got a really letter, you already know this first-hand. Because when the bank pulls back your line of credit, your FICO score requires a hit.
Roughly 1 / 3rd of your credit ranking is based on the percentage of credit limit you've used. So a lower credit limit may result in a higher utilization ratio and negatively impact your score...with virtually no change in your purchase or payment behavior.
What does this have to do with your employment search?
In the event your prospective employer conducts a routine background check together with its research, your credit report is a component of that screening. (Lest you believe this is a minor issue, you better think again. More than 40% of American employers routinely check the credit reports of job candidates.) In case the Bank of America Careers Login trimmed your line of credit, your score was almost certainly negatively impacted.
With the job market as competitive as it is at this time, you don't need anything dragging you down...just like a lowered FICO score...especially when there is absolutely nothing different regarding your repayment behavior.
There's another issue: small businesses proprietors. Lines of credit can be lifelines enabling them to manage cash-flow issues. Like making payroll. Reduced line of credit may mean a forced lowering of head count.
So if you've played by the rules, developed your credit score, and consistently paid your bills - too bad. If they decrease your line of credit, the financial institution that issued you that card could have a negative influence on your job search.