How Bad Credit Can Keep You from Getting a Job

18 Dec, 2016 / By

Thousands of employers complete credit checks for new hires these days. While this is a huge drawback for those that are well-qualified and experienced enough to complete the work, it does prevent some from becoming employed. It may not seem fair in some respects, but it is an employer’s right to run a credit checks on potential new hires.

Discredits Responsibility

A tarnished credit history displays a general lack of responsibility. What this tells a potential employer is that you just want to earn money but don’t want to pay your bills. This is not always the case. Some employers look the other way when it comes to medical bills, but there are those that see it as a way of milking the medical system.

Potential employers will look for repossessions on homes and cars as well as unpaid utility bills from moving, unpaid subscriptions and any other collections or judgments against you. In some cases you may be able to explain the situation behind the bill going unpaid and the potential employer will understand. Some employers find no excuse acceptable for not paying a bill that you knowingly accrued.

Shows Lack of Maturity

It is common for young adults to skip out on paying a bill. The most common bills that go unpaid are cell phone bills. Utilities such as cable and internet are also common for young persons to ignore. Once a young person obtains employment, credit cards and credit accounts are often obtained. The thing that young adults forget is that they still have to pay for items purchased on credit.

Young adults aren’t the only ones that ignore bills from time-to-time. Older adults run into financial difficulties too and are unable to pay some of their bills on occasion. This does not mean that the bills were unpaid intentionally; it simply means that things got behind and an account or two had to be temporarily neglected.
Paying bills on-time or making payment arrangements on accounts that are listed on a credit report show responsibility and maturity. Perfect credit is not needed, a couple of small infractions is often alright, especially if they are a few years old. Responsibility and maturity go hand-in-hand, so it is best to try to spruce up your credit report before attempting to gain employment with some companies.

Discredits Reliability

Potential employers often feel uneasy hiring someone that has poor credit. This is because in their eyes, it is foreseen that the person will not show up for work, will quit without notice or will need to have shifts covered on a regular basis. Situations like this cause problems for employers as covering shifts at the last minute is not always an easy thing to do.

Reliability is important to employers. They have to be able to count on each scheduled employee to be present for work every day, unless there is an illness or emergency.  Unreliable employees rarely have an opportunity to advance in their careers and get stuck in one position for their duration of employment with the company.

Many people seeking employment find it unfair that credit reports are part of the hiring process. You can look online on the company’s website to see if a credit check is part of their hiring process. If it is, look at your credit report to see what small items you can pay to help boost your score a little bit. Upon paying the items, obtain proof of payment and submit that to the potential employer if your credit report is brought up in the interview process. It never hurts to show that items have been paid to show that you are mature, responsible and reliable.

Jennifer Hamilton

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