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Worried about Bad Credit Affecting Your Job Opportunities? Here’s What You Need to Know!

Job hunting is stressful and can be even more so if you are worried about your credit affecting the chances you’ll be hired. Financial problems are understandable when you’re out of work and the longer you are without a job the worse your financial problems become – to the point they might affect your credit. It becomes a spiral that is tough to crawl out of, especially if you are searching for work in a field that uses credit to make hiring decisions.

How Do Employers Use Credit?

Potential employers do have a right to view your credit history. They must request permission before accessing applicant credit reports, so you’ll know they plan to pull your credit in advance and you’ll know exactly how they can use your credit in their decision making process.

Prior to 2012, any employer had access to any applicant’s credit report. Since then, changed laws only permit credit to be used in certain employment circumstances. For instance, if you are seeking employment in a financial institution or applying for a position that involves money or access to financial information, employers can run a credit check. They can also view credit history if they are hiring for a managerial position, making an applicant a named signatory for company credit accounts, or if the applicant will be transferring money or entering into financial contracts for the employer. Essentially, employers need justification for running a credit check on applicants and need to show responsible financial behavior is part of the job.

Are Credit Checks a Good Tool for Qualifying a Candidate?

There is debate over how accurate credit reports are for showing whether or not a job applicant is qualified. Some believe the way a person manages his or her own credit is a good indication of how he or she will behave as an employee. Others believe it has no bearing or is not a good way to assess a job applicant because everyone has unique financial circumstances. For instance, if a person’s credit is bad because of a medical emergency five years ago, is it really a good indicator for whether he or she would now make a good manager?

You can find more information about how experts view using credit in the hiring process in this contact Borrelli & Associates, P.L.L.C..

Should You Share Your Credit History with a Potential Employer?

Keep in mind you don’t have to give permission to a potential employer if asked for access to your credit history. However, refusing is likely to raise a red flag and in some cases, what a potential employer imagines might be worse than the actual details in your report.

As long as it makes sense and the employer has a reason for viewing your credit report and using it to make a hiring decision, you are better off providing permission to access the information. Not doing so is likely to result in an automatic dismissal from contention, so at least you’ll have a chance if they want to hire you and are willing to overlook credit flaws.

If you believe a potential employer has no reason to view your credit or used your credit inappropriately, you might have a right to take legal action. We can help you determine whether or not credit was a factor in the decision to not hire you and whether that’s OK. For more information or to discuss your concerns about employment discrimination for any reason, contact Borrelli & Associates, P.L.L.C. to discuss your situation.


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