A few proactive steps can keep you from missing out on your dream job because of bad credit.

When you take a test, you expect to be graded on how many questions you get right. But what if you find out later that your grade was based on how neatly you wrote out your answers? As job seekers with bad credit can tell you, it's no fun to fail a test you didn't know you were taking.

Team player with great credit

When you complete a job application, take notice of the paperwork that you're asked to sign. One of those signatures may authorize the employer to pull your credit history. Unless your credit management skills are pristine, your report could keep you out of a job, get you fired, or deny you a promotion.

Employers are interested in seeing your credit report for several reasons. First, it contains a list of current and previous employers that can be double-checked against the information you provided on your application. The prospective employer may also use the report to confirm your Social Security number as a means of identity verification. Finally, the employer may take a peak at the status of your credit accounts to help decide if you're a risky hire or not.

Employers say "no" to bad credit

Some employers believe that a poor credit history is a risk factor, particularly if the job involves access to a tempting amount of cash or highly sensitive information.

It's not illegal for a prospective employer to deny you a job offer or promotion because of your bad credit. Foreclosures, past-due accounts, and late payments can all be marks against you; the only credit item that can't legally be used against you is a bankruptcy judgment. If an employer makes a negative decision based on your credit information, that employer is legally required to notify you that your credit history was a factor. Certain guidelines dictate how this message is communicated-but in reality, it's often easier for the employer to cite some other reason.

Checking your credit résumé

It's particularly unfortunate to miss out on a job opportunity due to inaccurate information in your credit report. If you haven't accessed your free annual credit report recently, do it before you start applying for new jobs. Verify that the information is correct first, and then take an objective view of your account history. If you have only minor issues, consider the relevance of credit skills in your line of work. Major problems may reflect poorly on your character, which can work against you in any career field.

Your best strategy is to start improving your credit today. Create a system to keep all your accounts current and set goals for debt reduction. There are so many benefits associated with getting an A-plus on your credit history-in addition to improving your career potential-that there's no reason to put it off.