When Might a Poor Credit Score Affect Your Job
By Jeff Altman, The Big Game Hunter
Employers consider many factors when assessing a candidate’s suitability for a job, but did you know that credit history is one of them? 51% of US organizations conduct credit or financial checks as part of their background screenings. If you have some marks on your credit history, it could affect your ability to secure your next job. Here are three scenarios in which your poor credit score could impact your career.
1. You have excessive debt or missed payments
Prospective employers can’t see your actual credit score, but they can see critical information about the last seven to 10 years of your credit history, including:
● Outstanding balances
● Available credit
● Payment history
● Collections accounts
● Bankruptcies
This information might sway their opinion on your suitability for a job. For example, many late payments could suggest you’re disorganized or irresponsible.
Excessive debt could suggest you have poor financial management skills. Employers might even consider you to be at risk of committing fraud or theft if your credit report shows signs that you’re in financial distress.
2. You live outside of the 11 states that limit employer credit checks
The vast majority of states allow hiring decisions to be influenced by credit checks, but there are 11 states with limits on employer checks. These are:
● California
● Colorado
● Connecticut
● Delaware
● Hawaii
● Illinois
● Maryland
● Nevada
● Oregon
● Vermont
● Washington
If you live outside of these states, you’re more likely to face a credit check from prospective employers and if your credit history is poor, you might have more difficulty securing a job.
3. You’re applying for a job that involves money management or great responsibility
Employer credit checks are more common in industries where employees will be managing money and making major financial decisions, either for the organization or its clients. Financial background checks are also common to determine the reliability and trustworthiness of candidates for roles that involve handling sensitive information or working with the public. If you have a poor credit history your ability to secure a job in the following industries could be impacted:
● Banking and financial services
● Accounting
● Insurance
● Legal services
● Law enforcement
● Government
Don’t let a poor credit score limit your opportunities
A poor credit score doesn’t have to spell the end of your career aspirations. If you’re aware of problems in your credit history and a prospective employer is asking for a credit check, it might be helpful to be upfront with them about what they’ll find. This will allow you to explain the reasons for the negative marks in your report and describe the steps you’re taking to be in better control of your finances.
Ⓒ The Big Game Hunter, Inc., Asheville, NC 2024
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