Don’t Let Bad Credit Ruin Your Next Job

by Darwin on November 25, 2014

Your credit rating can have an effect on whether or not you gain employment. Many employers are now requiring that their potential new hires agree to a background check. What many employers don’t realize is that financial debt and collections do happen when a person becomes unemployed and it takes several months to obtain new employment. This is beneficial for employers but not for those that have experienced this situation.

Bad Credit Displays Responsibility Issues

Some employers see those with bad credit as irresponsible. It is an indication that bills are ignored and arrangements to pay are never made. Employers are looking for persons that display strong character, financial responsibility and those that they believe can move up in the company given that they possess the necessary qualities.

If you know that you have bad credit and a credit check is part of the onboarding process, it may be wise to speak with the hiring director prior to even returning an application or resume.

Some Employers Require Good Credit

Given the nature of some businesses, employers need to employ only those that are responsible in financial aspects of their lives. This includes paying bills on time, not having recent or simply neglected collections or serious financial offenses on their credit report. In order to work with money in any way, employers need to be able to trust their employees and looking at their financial credit history is an indicator of financial responsibility and the ability to handle money in other situations.

Fixing your Credit Report for Employment Purposes

View your credit report frequently, especially as you become newly unemployed. This will help you gauge what needs to be fixed and if it is even remotely possible given the circumstances. You may have to forego applying with some companies because of the credit check requirement.

It is also an option to take on temporary employment to pay off some of the debt on your credit report. Sometimes, when a potential employer sees that a potential employee is making an effort to clear up blemishes on their credit report, they still consider them for employment.

While it does not seem fair, some employers have specific traits that they wish their employees to have. Good credit is becoming a more popular trait as the years move forward. Although rare, some potential employers will bypass a few blemishes based upon your skills and the situation that caused the items to be on the credit report to begin with.


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