Many people know that their credit score plays an important role when qualifying for a loan or a credit card, however you may not know that this is also a vital factor that employers consider when looking to hire new employees.
A credit score is a three-digit number that represents your credit history and shows how likely you are to repay your debt. Financial institutions, such as banks, use this information to determine if you meet their specific criteria to be approved for a loan or credit card. It indicates how you have managed your financial obligations, such as loans and utility bills.
Employers are allowed to request your credit report with your written consent, and will be able to see some credit history details but will not see your actual credit score. The main reason for employers checking your credit report is to assess the applicant’s ability to manage their money and assess the potential for security threats, as well as to assess their responsibility with money as this can speak directly to their responsibility at work.
Applicants may qualify for a job, even with bad credit, however there are employers who still weigh credit more heavily for specific positions within the company, such as in financial or security roles. Having negative marks on your credit report would more than likely hinder your chances of qualifying for these mentioned positions.
Employers tend to request permission for a credit check to see whether the applicant is in a position of financial difficulty, but if the position being applied to does not relate to directly to finances, the applicant has the right to refuse to give the employer permission for the credit check.
Bad credit is unlikely to disqualify you from most jobs. It is recommended that employers do not base the final decision on credit histories, but rather base the decision on a more holistic, overall view and analysis of the candidates.
It is always a good idea to keep a close eye on your credit report. Your credit score might not directly affect your job or job application, but it could help you in determining whether you are able to qualify for a mortgage or pay high interest on a new credit card. You have a right to know if your credit history will be checked, and if so, you should use this time to go through your credit and ensure that this information is accurate and up to date.
The below articles were used to write this article:
https://www.experian.com/blogs/ask-experian/can-you-get-a-job-with-bad-credit/
https://mayaonmoney.co.za/2016/03/can-poor-credit-record-affect-chances-getting-job/
https://www.recruiter.com/recruiting/can-you-get-a-good-job-with-a-bad-credit-history/
