If you have low credit score, chances are, you’ll have a difficult time getting a job. Many job applicants are turned down by their prospective employers not because they lack skills, but simply because they have poor credit history.
Does bad credit really affect your chances of getting a good job?
Federal Law forbids employers to disqualify 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 credit report. Bad credit can be an indicator of someone who doesn’t manage his or her finances properly.If someone don’t consider paying off debt 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 checking such as identity verification or checking criminal records, credit history can still influence an employer’s decision. 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. 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 owner of the credit report before making an inquiry. 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 the rights of the people by prohibiting employers to deny an applicant because of bad credit history or bankruptcy. If you’ve been declined the job, your employer can 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 a job. 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 advisable that you check your credit report first before looking for a job. This way, you’ll know your status and will be able to do the necessary steps to correct any false information on your report.