subject: Dont Let Bad Credit History Affect Your Jobhunt! [print this page] One of the screening filters that some companies have added to their repertoires includes the bad credit history check. While an applicant may find this background check measure somewhat irrelevant, even intrusive, the company may beg to disagree. This is because an employee credit check will be able to show certain patterns in an employee's personal life, about whether or not the employee is fiscally responsible.
Another contention for a prospective employer (which could be inferred from analyzing the history of bad debt for an employee) is the possibility of that employee committing fraud. For a prospective employer, a bad credit history may mean a higher risk for the employee to steal from company funds, and possibly even jeopardize customer accounts.
Another concern for a company on the lookout for prospective staff would be the possibility of opening the company to a risk of getting sued by customers due to the mismanagement of their funds or accounts. A prospective hire who has an outstanding bad debt could raise a red flag, as it could be an indicator of potential theft, fraud, or other ways to possibly defraud both company and customers.
This is why, if you are on a job hunt, you should clean up your credit history and your credit rating. Start by paying back what you owe. Clean up credit card debt. Build a new history of paying on time. And hold off filing for loans or applying for new credit cards until after you've paid back all your old dues, as well as demonstrated months, even years, of being able to pay back what you owe, on time.
Jobs with bad credit are available. Some companies or employers do not really mind that their employees have had a history of bad debts. However, bear in mind that before your prospective employers can run a credit check on you, you do need to consent to the process. If you have bad credit, then be up-front with your prospective employer on how your credit got that way. Did you recently become a victim of Identity Theft? Then say so. Did you recently experience personal setbacks, like a major illness in the family? State the case. Did your spouse recently get unemployed? That is a valid factor as well.
Being honest and direct about how your credit got that way is key to reassuring your prospective boss that your credit history will have nothing to do with your ethics at work.
Know this: An employer is legally not allowed to reject an employee based on some cases of bad credit histories, like a bankruptcy filing. However, some companies may be able to get away with rejecting your job application for a bad credit record. They are, however, obliged to tell you whether they've rejected you for your credit history, as well as provide the specific credit report they based their decision on. When you get those details, get credit check yourself, so that you will be able to determine whether you could have explained your credit history situation, or use that knowledge and learning to strategize your next job hunt. This way, you will have a ready answer when your credit gets questioned.
A bad credit history is not the end of the world. Negotiate, explain, dialogue with your prospective employer, work on getting your credit history back on track and here's to success in your job hunt!
