How Negative Credit Can Squeeze a Job Search

2019/02/25

Nowadays employers are getting skeptical and overcautious about employing people. They are adopting stringent measures and rationales that are not always acceptable. Economic crisis and dwindling job market has given such employers liberty to impose such restrictions. One such restriction is – credit report of prospective employee.

Bizarre rationale is – people with big debts and credit problems are more likely to commit fraud or steal. These people are also perceived to be irresponsible and careless. Even when the job is not about managing money, many employers believe that those who can manage their credit and assets are better and responsible workers.

The issue becomes more relevant when we find that federal government also access credit history of a prospective or existing employee. However, such checking is mostly confined to areas where the employee would have direct access to government money and security clearances are involved.

Many Americans are now facing this dilemma and finding it hard to manage. You might have lost job due to poor economic condition. As such you are unable to pay your committed debts. As bad debts grow, you find it hard to get a new job, which is essential for paying off debt. This brings us to the crucial question, if it is justified and fair to deny job to a professionally qualified person just because he or she has some bad debts?

All these assumptions and facts reveal a simple truth- people with tarnished credit record are not welcome by employers. Bad debts are not always fault of individuals. An accident, sudden job loss, serious illness and many such factors may work together to create such unfortunate situation. However, your credit history remains silent about such unfortunate events.

An employer hardly lets you know that bad credit history is the reason for denying the job. This may be attributed to the clause that requires employer to provide copy of the report and explanation as to why the job was denied. To avoid this procedure they simply deny you job without showing reason.

As such it is desirable to keep your credit record clean as far as possible when you are on a job hunt.

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