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Can Your Credit Stop You From Being Hired?

Can you be refused a job because of your credit history? The answer may surprise you. While poor credit cannot be the sole reason due to FSA legislation, it can contribute heavily to the hiring process. If you are one of the 6.8 million American citizens looking for a job, you can expect companies to be interested in more than just your resume credentials. Running background checks and looking into your financial past has quickly become a norm in the recruitment process. A survey conducted by the Society of Human Resources Management in 2012 showed that almost 50 percent of employers conduct credit checks on potential employees when recruiting.
Understanding what is on your credit report is a good idea as you prepare for your interview. Be prepared to be asked and to answer any questions on your financial past. Two-thirds of employers will give you the chance to explain your credit history so if there are some undesirable events in your past, acknowledge your errors and show your growth from the experience.
Additionally, you can take corrective action and rebuild your credit. Poor credit history normally means charge-offs and default payments at some point. However, they can be removed. According to Credit Repair Companies (, you can hire companies to go through the removal process for you.
Job Limits
If you have charge-offs, chances are that there are job roles that will be out of your reach. This particularly applies to jobs in the financial sector where management of funds is a fundamental task performed. Employers may be sceptical about hiring you for financial roles, if they judge you based on your poor credit score history.
Employee Performance
Past studies have also shown that financial issues can affect an employee’s potential at work due to being distracted by their own personal issues. Employers look for workers that are able to provide 100 percent of their personal productivity. A poor credit history may signal to the manager future possibility of your performance being affected by these issues and also lead him to question your crisis management skills.
Future Complications
Employees with bankruptcy and past debt issues also present possible long-term issues to their employers. With companies investing in employees for the long term (unless it is a seasonal job), the risk of you not delivering on projects may be too great.
It is important that business be able to have a degree of confidence in their employees and their abilities. However, your credit history should not stop you from getting that dream job. With a little preparation and action on your part, you can be more confident about what employers will see should they choose to check.

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