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How Your Credit Score Affects Your Future Job Application

By Philip Tirone

Do you have a job? If your answer is yes, great! There’s no need to worry about your credit score. If you don’t have a job, are you satisfied with your current credit score? Will your future employer be satisfied with your credit score?

Why should an employer consider your credit score? Because it allows him or her a glimpse into your character and also lets them know if you’re a trustworthy person.

Inc. Magazine shared a statistic which is not favorable for job seekers with poor credit scores. According to the survey cited by the magazine, about 60 percent of employers occasionally run credit checks on potential job applicants. If employers are searching for the best employees, they will probably select an employee with a high credit score.

Competition for jobs is growing! With the current high unemployment rate, people with low credit scores should be concerned, especially if the position they desire involves managing money. Employers look for employees who can add value to their company. When considering credit scores, some employers may be hesitant to hire employees with a poor credit score because it can be a sign of irresponsibility. Therefore, they may not offer a job to a candidate with bad credit.

Don’t despair if your credit score is low because there’s still hope! There are two rules which can offset your low credit score.

Credit Scores and Jobs Rule 1: Highlight other areas of your life which demonstrate you are a responsible person. If you’ve ever been entrusted with the treasurer position in a nonprofit organization, tell your potential employer. He or she needs to know others have trusted you to manage their funds. Also, don’t forget to share a glowing letter of recommendation from a previous employer, especially when it compliments you for tasks that required a tremendous amount of trust, loyalty, and responsibility.

Credit Scores and Jobs Rule 2: Your credit score may be overlooked if you give truthful examples of your trustworthiness, especially if you can explain the events which caused your bad credit. Be up front and open with a potential employer before he or she runs your credit report. They already know the effects of a sluggish economy on personal and business finances. Your transparency might make them more sympathetic to your circumstances. Pitch your situation as a learning experience. Tell the employer what you’ve learned and how you have grown from the experience.

Make a commitment to rebuilding your credit. The results will be obvious when your credit score increases. If you walk into a job interview armed with facts about your credit score, how you have turned over a new leaf, and what your credit report indicates about your current behavior, a potential employer might be impressed that you overcame adverse circumstances, especially if those extenuating circumstances stemmed from the recession.

Credit checks can be stressful for job applicants with a poor credit score. It may appear that credit checks are another way to eliminate applicants who may otherwise be qualified for a job. Refuse to accept that thought. Instead, be open and transparent because great employers value an honest account of your situation.

When it comes to credit scores and jobs, be sure you are ready to be forthright about your past mistakes and able to offer evidence of your progress. In doing so, you allow employers to look past that three-digit number and offer you the job.

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