Did you know that there is a pay gap between people with good credit scores and those with bad credit scores? According to a study by the National Institute for Labor Relations Research, the average worker with a good credit score will earn $1.2 million over their lifetime, while the average worker with a bad credit score will only earn $1 million.
This is due in part to the fact that employers often look at credit scores when making decisions about hiring and salary. So, if you want to make sure you’re getting paid what you deserve, it’s necessary to work on your credit score. Let’s explore a bit further about the topic.
What Is a Pay Gap?
You might have heard the term “pay gap” used before, but what does it actually mean? The pay gap is the difference in earnings between two groups of workers. In this case, we’re looking at the difference between workers with good credit scores and those with bad credit scores. The study by the National Institute for Labor Relations Research found that the average worker with a good credit score will earn $300,000 more than the average worker with a bad credit score over their lifetime.
Why Does This Pay Gap Exist?
There are a few reasons why this pay gap exists. One of the most important factors is that employers often use credit scores as a way to screen applicants. They might not even realize they’re doing it, but research has shown that employers are more likely to hire workers with good credit scores and offer them higher salaries.
Another reason for the pay gap is that workers with bad credit scores are more likely to be unemployed or underemployed. This means that they might not have the same opportunities to earn income and climb the ladder at their job.
What Can You Do to Close the Gap?
If you’re concerned about the pay gap, there are a few things you can do to close it. One of the most important things is to work on your credit score. This can be a long-term project, but it’s worth it if it means you’ll be earning more money. You can also talk to your employer about their hiring practices and whether they take credit scores into account.
It’s important to remember that the pay gap is just one way that workers can be mistreated. Many other factors can contribute to someone not getting paid what they deserve. But if you’re concerned about the pay gap, these are a few things you can do to close it. Do you have any experience with the pay gap? Let us know in the comments below.