Does Personal Credit History affect Employment? The Answer is Yes

Most companies these days follow very strict guidelines when it comes to hiring employees. They first institute a thorough credit check in order to determine how efficient an applicant is in dealing with his/her finances and whether the applicant has met his/her credit obligations. Therefore, if you are looking for a new job or considering a job change, your personal credit history is going to play a crucial role. The credit screening has now become an integral part of the whole process when it comes to hiring new people. Following is a brief rundown on some of the different aspects associated with the same.

What do the Employers Look in Your Credit Report?

Your prospective employers are not just going to check your FICO score, which is a numerical representation of your relative credit risk. They are more interested in details on judgments, collection accounts, charge-offs, and other such transactional data. Even if the score appearing on your report is just fine, if you have recent instances of collection accounts and other such things, you may not be able to make the best use of the employment opportunities available out there. Bounced check is another important component that most employers will look into while . Bounced checks are technically illegal and if there are such things on your credit file, it can turn out to be a big turn off for your prospective employers.

Aggressive Credit Checking for High-Trust Positions

If you are applying for high-trust positions, such as jeweler, armored-truck driver, casino dealer, bank teller, and other jobs that require a high degree of trust, it is important to note that employers prefer to hire those applicants who have solid personal credit history. People who have good credit record are considered to be less likely to steal or do things that may go against the company.

What Do the Laws Say about It?

Many states these days now have laws that stop employment related discrimination on the basis of credit histories. However, even these laws have left room for exceptions, especially when it is about high-trust jobs. If it is a general job that does not require a very high degree of trust and if you are still denied employment or promotion, it can be considered as a violation of the federal Fair Credit Act; you can take legal action against those employers.

It is true that there are laws that regulate employment related discrimination on the basis of and that there has been an on-going debate on whether the practice of credit screening is good or bad, the fact is that employers are still doing it. If you are serious about your employment, you must have a practical approach toward it. A better credit file will definitely open the doors of new career opportunities for you.

Filed under Credit History, Credit Repair