If you’re credit history suffers from low credit score, chances are you’ll also have a difficult time finding job. Many job applicants were turned down by their prospective employers not because they lack qualification, but simply because they have poor credit history. Does bad credit really affect your chance of landing a great job?
Federal Law forbids employers of disqualifying job applicants because of their credit record. Nevertheless, it cannot be denied that most employers base a person’s credibility and sense of responsibility on the status of his credit report. Bad credit can be an indicator of someone who doesn’t manage his or her finances properly. If this person doesn’t take making paying their debts a priority, how can you trust them to take their job seriously? If you’re an applicant scouting for a high demand job, you’ll be in big trouble if you don’t have a good credit history to back you up.
Although employers also perform other means of background check such as identity verification or checking criminal records, the status of one’s credit history can still influence an employer’s decision on whether to hire or not. In fact, most employers prefer to use a person’s credit report to verify identity and check on other personal information.
This is the reality in the employment industry which is why financial experts advise everyone to take care of their credit reports. College students are recommended to start building their credit history while in school but be careful not to taint their credit with any damaging marks.
Know Your Rights
Just because you have a bad credit history doesn’t mean you don’t deserve equal treatment from employers. The Fair Credit Reporting Act clearly dictates that all employers must first ask permission from the owner of the credit report before looking in or making an inquiry. Checking on your credit report without your permission is a federal offense.
CONSOLIDATION SERVICE
What if your employer denies you the job solely on the basis of your credit report? The Federal Law also protects the rights of the people by prohibiting employers to deny an applicant because he has bad credit history or he has filed for bankruptcy. If you’ve been declined the job, your employer will surely explain to you the reasons why you’re being declined. If your employer uses your bankruptcy case or your poor credit as the main reason why you failed to get the job, you have the right to file a complaint or a law suit. The same principle applies for employees who were denied a well-deserved promotion or is fired from the job.
The federal law clearly states that employers cannot use your credit status as grounds for dismissal or refusing you with a job. If you ask, your employer may give you a copy of the FCRA rights and a copy of your credit report. Most employers will tell you to go get a copy for yourself since you are entitled to one free credit report a year. Remember, you have the right to dispute any inaccurate information on your credit report.
It is a wise move to personally check on your credit report if you’re planning to look for jobs. This way, you’ll know the exact status of your report and do the necessary steps to correct any false information on your report, just in case.
ABOUT THE AUTHOR
Liz Roberts is a freelance writer and loan consultant. The website http://www.badcreditresources.com offers resources that specialize in providing bad credit loans and bad credit cards.
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