How Your Credit Score Can Prevent you From Getting a Job

Currently there are millions of unemployed Americans looking for work. The job market is incredibly tight and employers are demanding perfection out of their applicant pools.

Aside from the basic job seeking skill set required for the process, candidates are under greater scrutiny. The checking of applicants credit scores is become more common and can limit your chances of finding gainful employment.

Credit Checks are Being Run on You

For years, hiring managers went through the standard process of checking references, verifying educational records and confirming candidate’s previous employment. Nowadays, 60 percent of all employers recently polled by the Society for Human Resources Management confirmed that they are running credit checks on some of their potential hires. Of all the companies that were surveyed, 13 percent of them investigate the credit report score of their applications.

Employers are in the position of seeing if a potential candidate may be a good fit for both the position and the corporate culture. Credit histories are being checked as a another way to gauge the potential of an applicant. The basic theories why are multi-fold. One consideration is if the job seeker cannot handle their personal affairs, how are they going to handle corporate responsibilities. Additionally, if someone appears to be in dire, financial straits, employers may think twice about entrusting them with corporate secrets and assets.

How to Make Sure You’re in the Clear

Although there is a movement taking place trying to ban the procedure, it may take years to be put in place. That is why job applicants must take extra precautions in regards to their credit score. If you are job seeking concerned that your credit score may prevent you from landing the job of your dreams there are some preventive measures you can take:

• Check Out Your Credit Score: Educating yourself about your credit score may seem a bit intimidating at first, but by taking the time to access the information, you can take the proper steps to either correct mistakes or explain yourself.
• Improve Your Credit Score: Whether you are looking for a job or seeking a low, a great credit score will make you look like a shining star among the masses. There are plenty of steps you can take to increase your credit score, so just do it.
• Build a Defense: Perhaps you know your credit score but due to a lack of financial resources there is nothing you can do to improve it. Honesty is the best policy at that point. Because employers can only run credit checks with the written consent of potential hires and because they have to pay a fee for the process, you should be notified if the act would occur. At that time, you should clearly and unemotionally explain the situation so they are not taken for an unpleasant surprise.