Does a stellar resume and great recommendations enough to land you the job of your dreams? Think again. Aside from looking at your performance, employers are also looking at one other thing: your credit. It’s one thing to be denied a job you are not qualified for. It’s another to not be hired because you have bad credit. While there is absolutely no research that connects bad credit and job performance, employers are starting to put into place credit checks as part of the evaluation process. According to the Society for Human Resource Management, 60% of private employers check the credit histories of their job applicants. There are hundreds of horror stories of prospect candidates being by-passed for a job they deserve simply because they fail to pass this credit check. This is a usual issue for many struggling job seekers in these hard economic times.
WHY EMPLOYERS ASSESS YOUR CREDIT
Unfortunately, a number of companies have used credit in weeding out candidates to prevent possible theft or embezzlement of company funds. HR managers and talent scouts use credit to help assess a candidate’s reliability and trustworthiness. They used this to judge and reduce potential risk. Employers have been using credit assessments as a way to protect themselves from possible crime or violation of ethics. A bad credit history may denote that the applicant has a record of distasteful and undependable behavior. It shows that you generally lack a sense of responsibility and control. In the past, most of these credit checks are only done for candidates that are applying for financial roles or senior positions. However, it’s recently expanding into other industries as well. A good credit history shows that you can command maturity and respect to handle the job you are applying for.
WHAT CAN MY FUTURE EMPLOYERS KNOW ABOUT MY CREDIT
While your employers don’t have access to your credit scores, they can ask to see your credit report. Subject to any state laws, employers can request access to your credit report from credit bureaus. Don’t worry as they will only send a customized report that are meant for employers. They can’t see what your lenders can see. Employers must also get your consent before having access to your credit information. These restrictions are covered by the Fair Credit Reporting Act. That being said, a good credit report never hurts. If you and another job candidate have the exact same qualifications, it could be the credential that makes you stand out from the crowd.
I HAVE BAD CREDIT. WHAT SHOULD I DO WHEN APPLYING FOR JOBS?
In a survey done by the Society for Human Resource Management, 4 out of 10 employers are reported to deny hiring a candidate just because they have negative or bad credit information on their credit reports. Having subpar marks on your credit reports can be potentially damaging to your hire-ability. While your credit report maybe the last thing that your employers will look at, it’s important to address it early on. Start by looking at your credit report yourself before applying for a job. Request a free copy from AnnualCreditReport.com to get a sense of where you are. It’s important to know this so that you won’t be caught off guard when an employer brings this up. When you do have negative remarks, it’s best to take the necessary steps to repair your credit. If you want to get a free guide that explains the easy steps on how to repair your bad credit, you may click here. If you don’t know where to start, one easy way of repairing your credit is to work with a credit repair agency. If you want to check out my review of the top rated credit repair agencies, you may refer here. Don’t allow bad credit to ruin your chances of getting your dream job. Start repairing your credit before you apply to avoid running into problems.