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Career Advice

How a Bad Credit Score Can Affect Your Chances of Being Hired

As many as 6 million people in the UK are excluded from common everyday services and products due to bad credit records according to research conducted by the Debt Advisory Centre. Of these, about 3 million have been rejected for a mobile phone contract, 2 million were turned down for a rental agreement and up to a million missed out on car insurance and their dream job. Credit scores are no longer only used when someone is applying for loans, credit cards or mortgages with both landlords and employers now running credit checks in an attempt to minimise fraud and theft.

Searching for a new job can be as frustrating as it is exciting and provides you with the opportunity to take another step along your career path. Looking for a new job can feel harrowing especially if the company asks for information that you are hesitant to disclose, like your credit record.   While it is possible that future employers will ask for your permission to access your credit report it isn’t always the case and is more often than not dependent on the type of job you are applying for. It is a very good idea to stay on top of your credit record as it hold vital information pertaining to how you deal with debt and payments as well as any details regarding court judgments and bankruptcies against you.

Your credit record can influence your employment potential

If your new job will involve handling large sums of money, a company may choose not to employ you for various reasons. One reason is that people who have a poor history of managing their own money may not be capable of handling someone else’s funds in an acceptable manner. Another, more worrying reason is that some employers fear falling victim to theft and fraud due to employees being desperate to pay off their debts.  While it may seem unfair that an employer requests to see your credit score it is important to remember that it is his/her duty to act in the best interest of the company.

Pay back what you owe

Prove your responsibility by making an effort to pay back your debts. While paying back small amounts on a monthly basis may not seem worthwhile, it will make a much better impression on anyone checking out your credit score than not paying your debt back at all will. All employers want responsible staff and making an effort to address your debt is an indication of just that.

Cancel unnecessary cards and check your financial associations

If you have any extra bank cards or accounts you no longer use it’s best to cancel them to avoid any temptation. If you share any joint accounts with someone such as a partner or flatmate you need to make sure that their financial situations are not affecting your own personal credit score. If your financial associate has a bad credit rating it can affect you adversely.

Have your judgments removed

Having a bad credit judgment against your name may be vexing but it does not need to lead to your downfall in terms of securing employment.  There are numerous ways to have a judgment removed from your credit report, according to Credit Repair Companies who suggest methods ranging from declaring bankruptcy to having the judgment vacated.

A seemingly small thing such as a bad credit report can mean the difference between you landing your dream job or remaining unemployed. It is well worth the effort to make the effort to address your credit rating in order to better your chances at landing the job you applied for.


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