Could a Poor Credit Report Cost You a Job?

| September 15, 2013 | 0 Comments


In these tough economic climes, having a few nicks on our credit reports has become more common. Although many of us are working to iron out these kinks, there are some of us that simply don’t realise that those late payments may cause us more trouble in the future. An ever-common thread of late, people are being turned down for employment due to their personal credit reports.

Until recently, many of us believed that only lenders and those applying for positions within the financial sector would need to have a clear credit history. However, it is becoming a common theme amongst many sectors, where your past credit history will be put under the spotlight when considering you for a position.  Whether you are looking for a new job, changing companies or you have recently been made redundant, having a less than perfect credit rating can hinder your chances of getting that new job that you have always dreamed of, or you may get the job with less pay than you would have otherwise. More and more industries are making the move into credit checking their prospective employees in order to protect themselves and their investments. It is worth noting that the majority of the positions where a credit check is performed are those that hold a financial responsibility. The understanding behind this is to protect from theft or embezzlement, so these aren’t arbitrary checks.

If you think bad credit may be hurting your chances in the job market, what can you do? Firstly, you need to start by knowing your credit rating inside and out.  There are many companies that offer a free credit score service, where you can preview your credit rating online. Once you have access to your credit report, you can start to look for any red flags within the document. Red flags can be anything from late payments, missed payments, CCJ’s or even mistakes that were not of your making. These are the issues that you need to address first. Some of these can be removed with ease by paying off unresolved items in full.

As with every financial change in our lives, they take time to completely sort through. So if you are applying for jobs that you know a credit rating will be asked for, then the best answer is to simply be honest with your prospective employer. By showing that you are dealing with any issues within your credit check, you are also telling your prospective employer that you are trustworthy, honest, and believe in tackling issues head-on.

In good news, many employers are now loosening their belts when it comes to their staff’s financial blemishes. This is partly due to the current economic climate, but has also arisen as a means to address the ever-growing unemployment crisis. This is not true for all roles, but for entry level positions, or those with less financial responsibility, a credit check may not even be required.


Photo credit: Philip Taylor PT

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Category: Business and Politics

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