A Look Back at the Patent Filing for SmartCredit’s Hiring Risk Index

It’s been over a decade since SmartCredit® filed a patent for its Hiring Risk Index. This breakthrough feature shows consumers how employers may use their credit reports to determine hiring, firing, or promotions.

On May 18, 2010, SmartCredit® announced a patent filing to secure intellectual property protection for its Hiring Risk Index.  SmartCredit® developed the Hiring Risk Index to help you understand how U.S. employers view your credit reports to make hiring, promotion, and firing decisions. The Hiring Risk Index uses credit report data to generate a score rated 350-bad to 850-excellent. It also details how companies may interpret a prospective employee’s credit report.

David B. Coulter, founder and C.E.O. of SmartCredit®, summed it up this way in 2010: “For the first time, people can better understand how an employer might judge their credit reports. It’s a growing trend that employers are using credit reports as a hiring aid – our Hiring Risk Index helps consumers better prepare for job interviews.”

The Hiring Risk Index is connected to credit monitoring alerts and may change when some aspects of a credit report change.  It uses certain stress-weighted factors SmartCredit® believes are relevant to employers.

The percentages below reflect how important each category is to the Hiring Risk Index:

• Last 12 months of payment history (recent financial stress): 40%
• Tax liens and collection accounts: 25%
• Excessive credit cards, automobiles, or mortgages (unnecessary financial stress): 15%
• New credit/new credit attempts in the last six months (change in financial needs): 10%
• Length of credit history: 5%
• Student loan history: 5%
• Total: 100% of the Hiring Risk Index

Unfortunately, credit reports often contain identity theft incidents and common errors that prevent people from getting a new job.  SmartCredit’s Action Buttons help ensure consumer credit reports are as accurate as possible, positively affecting the Hiring Risk Index and the chances of a positive employer review.

About SmartCredit.com™
ConsumerDirect® created the SmartCredit® system in 2003 to put people in command of their credit score, money, credit, and privacy. SmartCredit.com is suited for all Americans, regardless of their credit situation or lifestyle.

Categorised in: Press Releases

This post was written by David B. Coulter