What is an Employment Credit Score?

An Employment Credit Score is a pioneering concept from Smart Credit.  It is a score for individuals to understand how employers may judge them based upon their credit report.

Because your credit report is being used by 50% of employers to determine hiring, firing or promotion we felt it was important to create a new score that considered factors an employer may use.

Our Employment Score is determined by your credit report.  It weighs certain factors more, or less, depending on how an employer may look at your credit report.  Remember, employers cannot see your credit score.  This means factors on your credit report are manually reviewed and determined differently for a job or promotion than for a loan or line of credit, which is almost exclusive credit score based.

Your Employment Score range is between 350 and 850:

Great or Excellent 775-850
Good or Very Good 685-774
Normal or Average 615-684
Below Normal or Poor 515-614
Bad or Very Bad 350-514

The Employment Score is calculated from lots of different credit data in your credit report. The percentages below reflect how important each category is to your Employment Score.

Payment history in the last 12 months – looking for recent financial stress 40%
Tax liens and collection accounts 25%
Excessive credit cards, automobiles or mortgages – looking for signs of unnecessary or frivolous financial stress 15%
New credit or attempts for new credit within the last 6 months – looking for sudden change in financial needs 10%
Length of credit history 5%
Student loan history 5%
Total 100% of your employment score

As you can see, the last 12 months is very important to an employer.  Paying your bills on time, low financial stress and avoiding tax liens or collection accounts demonstrates good healthy behavior on your part.  This is important to employers who are looking to judge your character.

Compare that to how standard credit scores are calculated, including the FICO credit score:

Payment history 35%
Total amounts owed 30%
Length of credit history 15%
New credit 10%
Type of credit in use 10%
Total 100% of your credit score

Understanding your employment score can be the difference between getting hired, fired or promoted.

Be prepared by keeping your credit report the best it should be.  Use SmartCredit.com

Our patent-pending Employment Score is available to all members of Smart Credit at no additional charge.  We want our members to see what an employer sees and specifically how they may judge their credit report.

With Smart Credit you can protect yourself from sudden identity theft and keep your credit monitored with our state of the art 24/7 protection.

Use our action buttons to fix credit report errors, remove identity theft, get goodwill corrections of negatives and even settle small debts.  It works fast and is very effective.

David B. Coulter – founder and C.E.O. of Smart Credit