Credit Repair

Some Basic Reasons Why Employers Check Credit History Before Hiring Their Employees

The credit history of a person plays a very important role, not only when it comes to qualifying for loans, but also when it comes to getting good employment. These days, many employers check credit history of the applicants in order to decide who they should employ in their company. There are many people who have otherwise great academic record with many years of experience in a specific field, but they are denied a job just on the basis of their bad credit. Following are some of the main reasons why credit checking is such an important part of the process of the selection of employees.

Resume Verification

Credit checking has recently turned out to be one of the most commonly used tools to verify the applicant’s work history. The credit report of a person contains crucial details related to their employment status and history, such as which of the companies they have worked for, how frequently they have changed jobs, how much they were earning, whether they took cash advance from their previously employers and paid the same in a timely manner, and plenty of other such things. This way, resume verification is though a less troubled yet one of the most common reasons why employers check credit history of the employees before hiring them.

When Job Profile Is Related To Finance Handling

If you are applying for a job, where you are required to handle finance related things, your credit history is likely to be checked thoroughly. A bad or poor credit is usually taken as a very serious risk factor. Employers find it very difficult to trust such people, especially when they are supposed to handle large sums of money. Employers think people with bad credit history are more likely to commit frauds than those with good credit history.

Security Issues

Security related issues make another common reason why employers check credit history of the job applicants before hiring them. If you have bad credit, it only means that you are going through difficult financial circumstances, which is considered as security risk. Due to this specific reason, certain organizations, such as intelligence gathering organizations, national security organizations, and Federal and State law enforcement agencies never hire people who have poor or bad credit.

Understanding The Character Of The Applicants

Sometimes, even if the job profile does not include any finance related handling and there is no security issue as well, credit checking is still done in order to get better understanding about the character of the job applicants. When employers check credit history of the applicants and find that they have not been very good in handling their debt and finances, they have the assumptions that those applicants lack self determination and are not very disciplined ones and so cannot make good employees.

There are laws that prohibit any type of discrimination just on the basis of credit history of a person, which means employers may not deny you a job just because you have bad credit. However, despite the laws, such discrimination are very common; it is just that employers never make it an official reason for not giving you a job. However, now that you know that employers check credit history, you are recommended never to tell a lie about your financial history when you are asked certain questions about the same during a job interview. Your honesty can work as a plus point for you. You can also maximize your chances to get a job by giving some good reasons why employers should hire you despite the very fact that you have bad credit. For example, you can do this by sharing evidences that you have been working hard to bring your finances back on track and that you have achieve good deal of success in your efforts.


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