04 Feb The Criminal Record and Credit Relationship
With a simple search on Google you’ll see that the United States has the largest prison population in the world. Going to jail can negatively affect a number of life events once you’re out. Criminal record and credit are somehow connected but things are not as bad as you may think. Common worries about the relationship of criminal record and credit are related with their visibility on credit reports, or how it can affect a credit score. This is something that worries a large number of people daily. Let’s read and understand how the relationship of criminal record and credit can affect your financial health.
Does the Credit Report Include my Criminal Record?
What is included in a credit report? You hear or maybe wonder that a lot. The consumer credit report contains a variety of information about you. The overwhelming majority of them consists of financial habits, behaviors, and facts. Even with a quick-read, you can see details about your loans, credit cards, payments, etc. So no, consumer credit reports, do not include your criminal record. However, civil judgements such as tax liens, bankruptcies etc., are listed.
Can My Criminal Record Affect My Credit Score?
The answer is yes and no. No, criminal record cannot directly affect your credit score, however it can harm future credit applications. Some banks choose to dig deep in the borrower’s past when it comes to loans, especially for business purposes. Criminal record and credit combined, could be harmful if you apply for a business loan as it usually requires a good behavior from the applicant’s side. As good behavior, banks consider a clean criminal record. If you had any kind of debt prior to your incarceration, then this could lead to late payments from your side. In this case, if you cannot be diligent with your payments due to the change of the circumstances, then it’s good to inform your creditors. Your credit report includes late payments and it can affect your credit score.
Other Risks of Criminal Record and Credit
Other side effects of criminal record and credit are common when you’re looking for a job. Some employers require lots of proofs that you’re the ideal candidate for their company. So, some of your future or even current employers at any given time they can ask for background check. Of course, this is something that they cannot do without your written consent. This doesn’t really affect your credit score or credit report, but it does affect your ability to make payments on time.
In conclusion, criminal record and credit do not walk together hand-by-hand, but they do meet every now and then on your financial path. Credit this, credit that, the number of information can be overwhelming, unless you’re a financial specialist. Speaking of, Baby Boomers Financial is your go-to company for an effective solution on credit repair. Get in touch with us, today!