If you have been searching for employment for an extended period of time you are not unlike many Americans. There could be numerous reasons why you weren't hired. Your resume and cover letter may successfully highlight your background and qualifications. You may make a great first impression in the interview. However, the red flag that stands out to employers could be your credit. Bad credit can stop you from obtaining employment. Let's breakdown the impact of your credit in hiring decisions.
Screening Tool
Employers use credit reports to confirm identity and to determine whether an applicant is responsible and reliable. Employers also use credit reports in hiring decisions to determine whether an applicant will be able to manage their debts with the salary being offered. Furthermore, many employers limit credit checks to management, executive, or positions that will have access to cash, assets, a company credit card, or confidential information.
Your Privacy
Employers cannot obtain a copy of your credit report without an applicant's written permission. Most job seekers generally give them the needed permission when you complete forms authorizing a complete background check. Information found on a credit report cannot be used to deny the applicant of a job until the applicant has a had chance to review the credit report.
Information found on the Credit Report
Negative information found on the credit report will remain there usually for a period of seven years. Information pertaining to bankruptcies remain on the credit report for a period of ten years. Although there are limitations to using a bankruptcy in an employment decision.
Bottom Line
Strive to maintain good credit. If you have good credit, monitor your report closely to ensure that you are not a victim of identity theft. Remember, the information that shows up on your credit report could impact whether you are offered a position.
