What Do Chase, CitiGroup and Bank of America Relate to Your Your Employment Search?
Once upon a time, credit card issuers typically only trimmed credit lines on customers whose behavior suggested they might turned into a credit risk. For example, late payments, exceeding an existing credit line, low credit score - those types of things might have triggered the bank to lower 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 excellent credit and spotless repayment histories. Customers who never have a balance (i.e. they pay completely each month), pay on time, and 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 month or so.
There are consequences to that action. If you're one of the individuals who got a really letter, you understand this first-hand. Because when the bank pulls back your credit line, your FICO score requires hit.
Roughly 1 / 3 of your credit track record is based on the percentage of credit limit you've used. So a lower credit limit can lead to 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 task search?
Should your prospective employer conducts a routine background check included in its homework, your credit report is a component of that screening. (Lest you imagine this is a minor issue, reconsider. More than 40% of American employers routinely check out the credit reports of job candidates.) Of course, if the Bank of America Careers Login trimmed your line of credit, your score was certainly negatively impacted.
With the employment market as competitive as it is right now, you don't need anything dragging you down...just like a lowered FICO score...especially when there is nothing at all different about your repayment behavior.
There's a 2nd issue: many small business owners. Lines of credit could be lifelines enabling them to handle cash-flow issues. Like making payroll. Reduced line of credit may mean a forced cut in head count.
So if you've played with the rules, developed your credit score, and consistently paid your bills - too bad. If they trim your line of credit, the lender that issued you that card could have a negative influence over your job search.