Home: Free credit report :: credit history effecting employment, credit standing

How Is Credit History Effecting Employment? Let’s Take a Look

Persons with a less than stellar credit history may feel apprehensive about its possible effect on their efforts to land a job. While it is true that employers sometimes consider a person’s credit record before hiring him or her, one should probably not feel unduly alarmed at the presence of a few pieces of negative information in one’s credit report. To further understand the issue of credit history effecting employment and to allay some of those fears, let’s have a glimpse at some pertinent facts.

Obviously, a person would look for a job to improve his or her finances. But if his or her credit standing is not so good, there’s a chance that their job application will be denied, and this would definitely not contribute to their financial improvement efforts. And this is why the issue of credit history effecting employment is dreaded by some. However, ChoicePoint Inc., a company that does employee background checks for companies, states that only less than a third of its clients are asking for job applicants’ credit reports. Moreover, many employers are placing more emphasis on criminal background checks and identity verifications than on credit history.

However, there are industry sectors where an employee’s credit standing is given high importance. Persons whose job descriptions include the direct handling of money or valuables, such as jewelry, and also financial executives may find that employers will be looking at their credit reports. Other employees who may be affected are those who work for the federal government in positions that involve handling of cash or those in clearance-sensitive posts.

Remember that in order for a potential employer to have access to your credit report, you must first give your written permission. Without it, management will not be able to view your credit standing figures. Of course, chances are your potential employer will not think well of you for denying access to your credit report, but you are within your rights to do so. Also keep in mind that under U.S. law, no employee or potential employee may be refused employment or a promotion on the grounds of bankruptcy. You may be denied employment because of other negative information in your credit report, but never for bankruptcy. And if you are not hired or promoted because of these negative data, employers have a duty to inform you of the reason for their decision.

The issue of credit history effecting employment is surely an important one, but not an insurmountable problem. You should take the necessary steps to improve your credit standing so that there is one less reason for employers not to hire you.