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Your Credit Report Might Interfere With Your Job Search. Here’s What You Need to Know



These days, your credit history is almost as important for your personal finances as your bank accounts. That’s because it can impact everything from your ability to get a loan to your ability to get a job. Yes, that’s right: Your credit can impact your job search.

One of the more pervasive myths when it comes to job hunting is that your potential employer can see your credit score. If you have a low score, this can certainly cause some anxiety.

The good news is that employers can’t see your credit scores. However, there’s also some bad news: Employers can check your credit reports, or at least a limited version of them. And, depending on the employer — and what they find — your credit history could lead to a rejection letter.

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What your potential employer can actually see

Employers can’t see your credit scores, nor do they get the same version of your credit reports that lenders receive. But they do still receive quite a bit of information about your financial background.

An employer version of a credit check can include your:

  • Name
  • Social Security number
  • Address
  • Current debts
  • Payment history

In most cases, your potential employer probably already has your personal details like your name and Social Security number (SSN), which is often required to run the background check in the first place. Other than your SSN, the personal information on your credit reports is available through a basic background check that includes a public records search.

So, really, it’s your current debts and payment history that are the meat of the report. This can include mortgages, auto loans, personal loans, or credit card accounts. Your credit reports will show last reported balances, as well as whether you’re current on your payments.

One thing to note is that employers — and potential employers — require your consent to check your credit. A lot of companies will include this as a part of the initial employment application.

Some industries may care more than others

How much weight an employer gives your credit history — or whether they even check it at all — can vary a lot by industry and company. For example, if you’re looking to work at a local drive-thru, your credit card debt probably isn’t an issue.

However, if you’re applying for a position in a bank or lending office, then your credit history could have a lot of influence on the hiring decision. After all, if you’re not managing your own finances consistently, a company may not want to hire you to manage theirs. Too much debt could also be a red flag in certain security-sensitive jobs, as some employers may feel those with excessive debt are more susceptible to outside manipulation (like bribery).

If a company does plan to reject your application based on your credit check, it is required by law to notify you — in writing — that it’s taking “adverse action” due to your credit. The company is also required to send you a copy of your report so you have an opportunity to dispute any incorrect information.

The best ways to clean up your credit reports

You have three main credit reports, one from each of the three major credit bureaus: Experian, Equifax, and TransUnion. You’re normally entitled to one free credit report from each bureau every year, though you can get weekly reports through April 2022 due to the pandemic. You can access your free reports at (The site is safe and run by the credit bureaus.)

So long as your credit history is in good shape — that is, you have no late payments, maxed-out cards, or defaulted accounts — you probably have little to worry about if an employer checks it. However, if your credit history isn’t looking its best, you may be able to clean it up.

The first thing to do when you check your reports is to ensure that everything on them should be on them. If you don’t recognize any accounts, or there are other errors on your reports, you can file a dispute with the credit bureau to have the information corrected. You’ll need to file a separate dispute for each incorrect item with each bureau.

If the problem items on your credit reports are legitimate (in other words, if you really did miss that payment or default on that account), then you won’t be able to have them removed through a dispute. Instead, you may have to simply wait for them to age off your reports. Most negative items will automatically come off your credit reports after seven years.

While it’s not highly likely that you’ll lose out on most jobs due to your credit history, it’s good to know where you stand and any potential red flags you may face. And, given the importance of your credit to your finances overall, it’s information you should have even when not actively on a job hunt.

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Are Sallie Mae Student Loans Federal or Private?



When you hear the name Sallie Mae, you probably think of student loans. There’s a good reason for that; Sallie Mae has a long history, during which time it has provided both federal and private student loans.

However, as of 2014, all of Sallie Mae’s student loans are private, and its federal loans have been sold to another servicer. Here’s what to know if you have a Sallie Mae loan or are considering taking one out.

What is Sallie Mae?

Sallie Mae is a company that currently offers private student loans. But it has taken a few forms over the years.

In 1972, Congress first created the Student Loan Marketing Association (SLMA) as a private, for-profit corporation. Congress gave SLMA, commonly called “Sallie Mae,” the status of a government-sponsored enterprise (GSE) to support the company in its mission to provide stability and liquidity to the student loan market as a warehouse for student loans.

However, in 2004, the structure and purpose of the company began to change. SLMA dissolved in late December of that year, and the SLM Corporation, or “Sallie Mae,” was formed in its place as a fully private-sector company without GSE status.

In 2014, the company underwent another big adjustment when Sallie Mae split to form Navient and Sallie Mae. Navient is a federal student loan servicer that manages existing student loan accounts. Meanwhile, Sallie Mae continues to offer private student loans and other financial products to consumers. If you took out a student loan with Sallie Mae prior to 2014, there’s a chance that it was a federal student loan under the now-defunct Federal Family Education Loan Program (FFELP).

At present, Sallie Mae owns 1.4 percent of student loans in the United States. In addition to private student loans, the bank also offers credit cards, personal loans and savings accounts to its customers, many of whom are college students.

What is the difference between private and federal student loans?

When you’re seeking financing to pay for college, you’ll have a big choice to make: federal versus private student loans. Both types of loans offer some benefits and drawbacks.

Federal student loans are educational loans that come from the U.S. government. Under the William D. Ford Federal Direct Loan Program, there are four types of federal student loans available to qualified borrowers.

With federal student loans, you typically do not need a co-signer or even a credit check. The loans also come with numerous benefits, such as the ability to adjust your repayment plan based on your income. You may also be able to pause payments with a forbearance or deferment and perhaps even qualify for some level of student loan forgiveness.

On the negative side, most federal student loans feature borrowing limits, so you might need to find supplemental funding or scholarships if your educational costs exceed federal loan maximums.

Private student loans are educational loans you can access from private lenders, such as banks, credit unions and online lenders. On the plus side, private student loans often feature higher loan amounts than you can access through federal funding. And if you or your co-signer has excellent credit, you may be able to secure a competitive interest rate as well.

As for drawbacks, private student loans don’t offer the valuable benefits that federal student borrowers can enjoy. You may also face higher interest rates or have a harder time qualifying for financing if you have bad credit.

Are Sallie Mae loans better than federal student loans?

In general, federal loans are the best first choice for student borrowers. Federal student loans offer numerous benefits that private loans do not. You’ll generally want to complete the Free Application for Federal Student Aid (FAFSA) and review federal funding options before applying for any type of private student loan — Sallie Mae loans included.

However, private student loans, like those offered by Sallie Mae, do have their place. In some cases, federal student aid, grants, scholarships, work-study programs and savings might not be enough to cover educational expenses. In these situations, private student loans may provide you with another way to pay for college.

If you do need to take out private student loans, Sallie Mae is a lender worth considering. It offers loans for a variety of needs, including undergrad, MBA school, medical school, dental school and law school. Its loans also feature 100 percent coverage, so you can find funding for all of your certified school expenses.

With that said, it’s always best to compare a few lenders before committing. All lenders evaluate income and credit score differently, so it’s possible that another lender could give you lower interest rates or more favorable terms.

The bottom line

Sallie Mae may be a good choice if you’re in the market for private student loans and other financial products. Just be sure to do your research upfront, as you should before you take out any form of financing. Comparing multiple offers always gives you the best chance of saving money.

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Tips to do some fall cleaning on your finances



Wealth manager, Harry Abrahamsen, has five simple ways to stay on top of the big financial picture.

PORTLAND, Maine — Keeping track of our financial stability is something we can all do, whether we have IRAs or 401ks or just a checking account. Harry J. Abrahamsen is the Founder of Abrahamsen Financial Group. He works with clients to create and grow their own wealth. Abrahamsen shares five financial tips, starting with knowing what you have. 

1. Analyze Your Finances Quarterly or Biannually

You want to make sure that your long-term strategy is congruent with your short-term strategy. If the short-term is not working out, you may need to adjust what you are doing to make sure your outcome produces the desired results you are looking to accomplish. It is just like setting sail on a voyage across the Atlantic Ocean. You know where you want to go and plot your course, but there are many factors that need to be considered to actually get you across and across safely. Your finances behave the exact same way. Check your current situation and make sure you are taking into consideration all of the various wealth-eroding factors that can take you completely off course.

With interest rates very low, now might be a good time to consider refinancing student loans or mortgages, or consolidating credit card debt. However, do so only if you need to or if you can create a positive cash flow. To ensure that you are saving the most by doing so, you must look at current payments, excluding taxes and insurance costs. This way you can do an apples-to-apples comparison.

The most important things to look for when reviewing your credit report is accuracy. Make sure the reporting agencies are reporting things actuary. If it doesn’t appear to be reporting correct and accurate information, you should consult with a reputable credit repair company to help you fix the incorrect information.

4. Savings and Retirement Accounts

The most important thing to consider when reviewing your savings and retirement accounts is to make sure the strategies match your short-term and long-term investment objectives. All too often people end up making decisions one at a time, at different times in their lives, with different people, under different circumstances. Having a sound strategy in place will allow you to view your finances with a macro-economic lens vs a micro-economic view. Stay the course and adjust accordingly from a risk and tax standpoint.

RELATED: Financial lessons learned through the pandemic

A great tip for lowering utility bills or car insurance premiums: Simply ask! There may be things you are not aware of that could save you hundreds of dollars every month. You just need to call all of the companies that you do business with to find out about cost-cutting strategies. 

RELATED: Overcome your fear of finances

To learn more about Abrahamsen Financial, click here

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How to Get a Loan Even with Bad Credit



Sana pwedeng mabura ang bad credit history as quickly and easily as paying off your utility bills, ‘no? Unfortunately, it takes time. And bago mo pa maayos ang bad credit mo, more often than not, kailangan mo na namang mag-avail ng panibagong loan. 

Good thing you can still get a loan even with bad credit, kahit na medyo limited ang options. How do you get a loan if you have bad credit? Alamin sa short guide na ito. 

For more finance tips, visit Moneymax.



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