Can Poor Credit Hurt Job Seekers?

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Many American face problems in paying their student loans and mortgages every month. The reason for this is quite simple; they have either lost their jobs or have cut short their working hours, which, in turn, have brought down their wages too. A low credit score may become a red flag to the job hunters because numerous employers consider lousy credit as a sign of irresponsibility in the candidate.

Poor Credit

How Can Your Credit Report Disqualify You?

One might think that finding a job and increasing your pay would be a simple task and based upon your experience and possibly willingness to work for less money. However, there are other considerations which raise a real “catch 22” for job seekers. Many companies check job applicants’ credit as part of the background check. Some also check credit histories when employees are considered for promotions.

According to a recent survey done on more than 2000 recruiting managers by CareerBuilder, 29% of employers conduct credit checks before hiring the candidates.

For many years the government and the financial industry used FICO scores and credit history as an indication of trust worthiness. The problem today is that many people are seeking a new job not to better themselves or their current wages but because they simply do not have any wages or the ability to pay their bills.

The issue would seem to be clear from this, without paying your bills your credit will take a hit and you could be viewed as a risk in hiring due to your “trust factor.” As a result, you need to be aware of your rights as an employee and the fact that there are certain Federal and state laws that protect you from just such discriminatory action, more specifically, not being hired or promoted due to your debt.

Few states such as Illinois and California offer jobs that don’t require a credit check.. In this regard, some critics have argued that advocates of public policy and lawmakers are making the checking of credit card a buzz among the job searchers for their own profits. The rising awareness among the people is compelling many states to ban the checking of credit report. As for instance, the City Council of New York has outlawed the checking of credit history of a person prior to offer him an employment.

Now it is important to note that if you have filed bankruptcy, you cannot be discriminated or turned down for a job or promotion due to your bankruptcy filing. Pursuant to 11 U.S.C. § 525(b) “No private employer may terminate the employment of, or discriminate with respect to employment against, an individual who is or has been a debtor under this title [bankruptcy code]… solely because such debtor … is or has been a debtor.”

It does not mean that if having good credit is an essential function of the position that you cannot be turned down but it must be as a result of your credit and not specifically because you filing for bankruptcy. In fact, it should be noted that in many cases filing for bankruptcy, especially Chapter 7, your credit score may be higher within six months of your discharge then it was the day before you filed for bankruptcy.

How to Grab Jobs with Low Credit Score?

So what can you do to combat your financial history? First, you need to know what is on your credit report. You have a right under the law to request free of charge once a year your credit report. You should do this. Review your report and know what is on it. If there is something incorrect: dispute it. If there is something negative, but true, be prepared when you interview to discuss it and have an explanation as to what happened and how it does to reflect your normal financial practices. If you live in Maryland or six other states, there are laws that limit if not outright stop an employer from reviewing your credit report as part of a background check.

What Jobs are there for you with Bad Credit?

Nurse, administrative assistant, and teachers are some of the jobs that don’t require a credit check. Though the employers shouldn’t consider your credit report as the golden standard of your performance, yet you won’t be considered eligible to apply for a finance-related job with bad credit. To know about other occupations where the employers don’t consider credit card score, click here.

The Conclusion

Finally, if you believe you have been discriminated as a result of any activity that is allowed under the law such as filing for bankruptcy, or realize your debt is harming your ability to obtain subsequent employment, speak to an employment discrimination or bankruptcy attorney today.

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