People with poor credit may be discouraged from applying for jobs due to the possibility of rejection. Contrary to popular belief, having bad credit does not always prevent you from finding a good job.
Indeed, many reputable businesses are willing to consider applicants with questionable credit histories.
Remember that having bad credit does not imply being a criminal or having a history of irresponsible spending.
If you have a low credit score, chances are you’ll have a hard time getting a job.
Many job applicants are turned down by their prospective employers not because they lack skills but simply because they have a poor credit history.
Does bad credit affect your chances of getting a good job?
When it comes to finding work, having bad credit can be disadvantageous.
According to a recent Federal Reserve Bank of New York study, employers are increasingly checking job applicants’ credit histories.
Furthermore, those with poor credit are far more likely to be turned down for a job than those with good credit.
Federal law forbids employers to disqualify job applicants because of their credit records.
Nonetheless, most employers base a person’s credibility and sense of responsibility on the credit report.
Bad credit can be an indication of poor financial management.
How can you trust someone to take their job seriously if they don’t consider debt repayment a priority?
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 checking, such as identity verification or checking criminal records, credit history can still influence an employer’s decision.
Most employers prefer to check a person’s credit report to confirm identity and other personal information.
That is the reality in the employment industry. Financial experts often advise people to maintain good credit.
College students are also recommended to start building their credit history while still in school.
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 dictates that employers must first ask permission from the credit report owner before inquiring.
Checking on your credit report without your permission is a federal offense.
What if the employer denies you the job base on your credit report?
The Federal Law also protects peoples’ rights by prohibiting employers from rejecting applicants based on poor credit history or bankruptcy.
The company will provide you with an explanation of why they reject you for the position.
If your employer uses your bankruptcy case or poor credit as the main reason for failing to get the job, you have the right to file a complaint or a lawsuit.
The same principle applies to employees who were denied a well-deserved promotion or fired.
The federal law clearly states that employers cannot use your credit status as grounds for dismissal or refusing you a job.
Your employer may give you a copy of the FCRA rights and credit report. Most employers will tell you to 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.
Check your credit report first before looking for a job. This way, you’ll know your status and be able to do the necessary steps to correct any false information on your report.
A person’s ability to get work may be significantly impacted by having a low credit score. It is due to the fact that many employers use a credit reports to examine prospective employees. Therefore, it is crucial for those with low credit ratings to take action to raise their score. Monitoring their credit record and fixing any inaccuracies is one approach to achieve this. They can also work to raise their credit score by making on-time payments on their bills and preserving a positive credit history.
