There is an ongoing conversation about how your credit history can have an impact on your chances of getting a job. As you know already, credit history pulled from credit checks has a direct impact when applying for loans or credit cards. But how does it impact employment? Or does it have any impact at all? How does credit history determine whether or not one would make a good employee?
How Can Credit Checks Impact Potential Employment?
Different state laws govern how employers carry out a credit check for a potential employee. Your personal credit report may be considered an indication of the quality of your work. If you had disciplined credit practices such as making timely payments to eliminate credit card debt, you would potentially score well with your employer. If you are one with bad credit practices such as ignoring your creditors, bills in collections, and are constantly making late payments you are more likely to find yourself in the unemployment line.
Get Your Credit in Order if You Are Looking for a Job in Finance
If you are looking for a job in the banking or finance industry, your potential employer will almost always request to conduct a credit check. It is common practice to evaluate their potential employee’s financial fitness in order for them to trust you to handle their company’s finances.
Better Credit May Win You the Job!
If you have reached the last stage of your interview process and you are neck and neck with another candidate, your credit report may be the thing to break the tie. The person with the above average credit report will most likely be preferred to the one with the average credit history, given that they display more stability and responsible behavior.
Employers Look for Assurance
If a prospective employee displays questionable ability to handle their own money, it might negatively affect the employer’s subjective influence. What they look for typically are patterns of money mismanagement and unresolved debt. Student loan debt or medical bills are usually not considered. The good news is that there are ways to prepare for your credit check.
How to Prepare for Employer Credit Checks
Remember, a company must have your written consent to pull your credit report. Before applying, it’s a good idea to request one for yourself. This way if you see any errors, including inaccurate information, you can dispute them to avoid a negative effect on your credit score.
If there are some skeletons in your closet that you won’t be able to fix before an employer sees it, be honest about it. It looks better knowing that you’re aware of your financial situation than trying to lie about it. In the event they do decide not to hire you based on what they’ve found, they have to tell you how that has influenced their decision and they will usually allow you to respond.
To speak to a certified credit counselor today about managing your finances call American Consumer Credit Counseling at 800-769-3571.