So, you’ve been working with your company a while, and they offer you the opportunity to relocate across the country. It’s just the thing you’ve been looking for to give your life – and career – a much-needed boost. But, thanks to a few financial hiccups here and there over the years, your credit has taken a hit. How in the world are you going to transfer your job, your life and your home with bad credit?
Alternatively, perhaps you’re responsible for transferring employees across the country for your company. How often do you have to help your transferees with issues like damaged or bad credit? It may not be a daily occurrence, but it’s definitely a challenge when it does arise.
Whether you’re about to relocate, or help someone relocate, here are some great points to consider when you are transferring while drowning in debt.
If you’re relocating and have bad credit:
- Talk to your employer. Chances are that your relocation professional has resources at their disposal that can help you. There’s no shame in explaining the reasons for your financial setbacks – especially if they were a result of situations beyond your control, like a divorce or a medical bill.
- Consult a credit-counseling service. It takes time to repair damaged credit, but credit-counseling services can help make a significant improvement. In addition, they may be able to coach you on improving or building a budget that will also help lift your credit score.
- Consider renting. More and more transferees are choosing to keep their existing home and then renting a home in their new location. Keeping your home can help improve your credit over time because you are continuing to make regular payments on your mortgage. If you’re worried about bad credit preventing you from renting, check with your potential landlord to see if your employer will vouch for you.
- Educate yourself. Utilize your resources provided by your company and relocation specialist. Make sure you fully understand the costs – if any – involved in relocation during, or even before, the pre-decision phase. It’s important that you’re aware of the financial impact that relocation and your credit will have on your move.
If you’re helping relocate an employee with bad credit:
- Be understanding. Financial hardships can strike anyone at any time, regardless of how hardworking or financially responsible they are, or appear to be. Perhaps it’s due to an unexpected large medical bill, or a divorce. Chances are the transferee already feels anxious and overwhelmed by the pressure of bad credit. Try to be as understanding of their situation as possible.
- Know your limits. You aren’t a credit counselor. As tempting as it may be to offer financial advice to your transferee, it’s not your job to help them repair their credit. You can provide resources and help guide them to help while educating them about the existing relocation policy or package, but remember your limits.
- Use your resources. As a relocation professional, you have access to information that your transferee may not. Find loopholes and other often-overlooked alternatives to help the employee. The transferee’s credit may be bad, but the spouse could have great credit. Network and call on your contacts to find local credit counseling services or financial advisors.