How Bad Credit Can Affect Job Prospects

The author of this article has neglected to indicate that it is a violation of the Fair Credit Reporting Act to use credit as the sole determining factor in a pre employment screening background check. Additionally, she failed to understand that an employment application is not an acceptable release for an employer to conduct a credit check on a potential hire. There must be a separate document sometimes referred to as a background authorization form, which an applicant must sign. This way there is not a “hidden” authorization granted by the applicant.

We all know that our personal credit history affects our ability to secure a home loan or open an account at a department store. But most Americans are unaware that bad credit could cost them a job.

Many employers use credit history as a tool in their pre-employment screening as just one measure of judgment and character. If you can’t manage your financial obligations, they wonder if it’s a sign of irresponsibility. If your monthly debt payment is higher than your salary, some employers worry that it may distract from your performance.

Critics of this practice say it’s unfair for personal credit history to be used when judging professional qualifications. They say there’s no link between poor credit and job performance. Many of these people have hit rough patches, and now they’re caught in a vicious cycle: To pay down their debt, they need a job, but they can’t get hired because of their debt.

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