Bad credit showing up on your credit history can impact your job search. Many companies will check your credit as part of the routine background check. Some people believe that how you pay your billsgives employers an indication of the quality of your work. These employers believe that an applicant with bad credit indicates either an inability to live up to your commitments or a belief that it is not important to honour your commitments. This belief, correct or not, are traits that potential employers do not wish to inherit.
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Of course this is painting a picture with very broad strokes and doesn’t take into consideration the reason for your financial problems causing the bad credit, which may be due to a divorce or a layoff. But, employers want to avoid situations when collectors start calling the office or try to garnish wages. Previously, we have written many blogs on such causes of financial problems, including:
- SERIOUS ILLNESS AND MEDICAL DEBT CAN RUIN YOU FINANCIALLY ON BOTH SIDES OF THE BORDER
- MARITAL BREAKDOWN AND BANKRUPTCY: WHICH COMES FIRST?
- ARE YOU LIVING PAYCHEQUE TO PAYCHEQUE?
- YOUR CREDIT RATING CAN BE RUINED EVEN IF YOU DON’T DO ANYTHING WRONG
According to Dave Dinesen, President and CEO of BackCheck, a pre-employment screening services company, they’ve screened over three million Canadians for more than 5,000 organizations, and the vast majority of employers use credit checks for identification verification purposes (such as employment history and address history). By doing so, they can also differentiate between candidates who have good credit and bad credit.
Before a potential employer can pull your credit history, you must sign a release. Protect yourself and know exactly what’s in your credit report before your potential employer does. To get a copy of your credit report contact either of the two major reporting agencies – Equifax or TransUnion. They are required to provide you with a free copy of your credit report once every 12 months, if you ask for it. Have them correct any inaccuracies that you find. If you discover anything in your credit report that could be potentially damaging, the best thing to do is be upfront with your potential employer. The likelihood is that a few late payments won’t prevent you from being hired. However, if you believe that a credit check will expose that you have bad credit and would negatively impact your job search, you may want to consider applying to smaller companies that don’t do routine credit checks as part of the hiring process.
Bad credit is serious and can impact many aspects of your life. Don’t ignore your financial problems; face them head on with professional help. Contact Ira Smith Trustee & Receiver Inc. We’ll work with you to get your life back on track so that Starting Over, Starting Now you’ll never have to be afraid of a credit check again.
