What Do Chase, CitiGroup and Bank of America Relate to Your Your Career Search?
Once upon a period, credit card issuers typically only trimmed credit lines on customers whose behavior suggested they might turned 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 lessen the amount of money these folks were willing to lend.
It seems like pretty much everyone is in the crosshairs of the banks.
They're now looking at those who have excellent credit and spotless repayment histories. Customers who never have a balance (i.e. they pay 100 % each month), pay on time, and get 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 month or so.
There are consequences to that action. If you're one of the people who got a really letter, you are aware of this first-hand. Because when the bank pulls back your line of credit, your FICO score requires a hit.
Roughly one third of your credit track record 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 work search?
When your prospective employer conducts a routine background check included in its research, your credit report is an element of that screening. (Lest you imagine this is a minor issue, reconsider. More than 40% of American employers routinely look into the credit reports of job candidates.) Of course, if the Bank of America Careers Login trimmed your line of credit, your score was almost definitely negatively impacted.
With the employment situation as competitive as it is today, you don't need anything dragging you down...like a lowered FICO score...especially when there is nothing at all different of your repayment behavior.
There's a 2nd issue: small business owners. Lines of credit could be lifelines enabling them to take care of cash-flow issues. Like making payroll. Reduced line of credit may mean a forced lowering of head count.
So if you've played via the rules, developed your credit score, and consistently paid your bills - too bad. If they decrease your line of credit, the bank that issued you that card can have a negative influence on your job search.