Your Credit and Your Employment
Posted on September 25, 2008
Filed Under Government Foreclosures |
There are many ways that you can put off having to deal with credit. You can rent a place to live, you can take the bus instead of owning a car to drive, and you can even go without health insurance. Of course that’s not advisable, but it is possible. People learn how to deal only with the cash they have and not rely on plastic to get them out of fixes. But in order to have the money to do all that they need something they cannot do without - a job.
It is important to know that the law prohibits an employer from denying employment to someone based on bankruptcy findings. However, the law does not prohibit an employer from denying an application, or even rescinding an offer, based on other credit issues. Some of these issues could be inquiries, foreclosures, or collection actions. More and more companies are using credit reports as a means of hiring, firing, and for promotional purposes. One survey that was taken by the Society for Human Resource Management showed that 35% of companies are now performing this practice.
The most common practice for employers still remains to be the background check, but studies have found that if a company is pooling resources in order to verify background, more often than not, they will go ahead and pull the credit report also. However, many employers have found that finding credit mishaps did not determine whether or not an employee was more likely to steal. The better predictor, most would say, is a full criminal background check, which would show things such as bounced checks. Employers will also use credit checks in order to make sure employment history is correct and that the Social Security numbers are valid. This is a measurement that is taken as a form of insurance for a company that is trying to hire new staff members.
Some of the best jobs are with the government. There is plenty of room for advancement and job security is usually better than with most jobs in the private sector. Governmental agencies do perform credit checks for security reasons, but don’t worry, the only time a credit report will be used as a means of denial is if the prospective employee will have direct access to cash.
There are rules that people have to follow, regardless of the position that is being applied for. For instance, an employer has to have your permission before they can run a credit check. The permission has to be obtained in writing, and any deviation from this method is against the law. Bankruptcy is not supposed to be considered a problem. Remember, they can take issue with you not paying your bills, but not if you have filed for bankruptcy. Finally, if your credit information is used against you in any way, the employer is required to tell you what the problem is.
When it comes right down to it, the best thing you can do for yourself is to stay on top of your credit. Credit affects people more and more with each passing year. During the time of our grandparents no one would have ever thought that they would be refused a job due to bad credit. Today, there are many people who lose their jobs due to bad credit and it is affecting us all in ways we never would have thought of.
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8 Responses to “Your Credit and Your Employment”
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in what STATES employers can’t check your credit for employment purposes?
my backround is clean, DMV records clean, job history in banking is excellent, no gaps of employment, no problems.
I just have bad credit and I need to know what states are not allowed to check my credit for employment purposes?
I don't know who thought that was a good idea, but Checking
someone's credit history shouldn't have to do with getting a job, unfortunately all states.
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None that I know of.
You have to put yourself in the employers shoes. Credit reports are like report cards when we were in school only instead of showing how good/bad we are doing in our studies they show how good/bad we are at managing our finances.
If you are looking to hire someone to fill a position that requires handling large amounts of money, you do not want to hire someone that might be tempted to steal to pay their bills. Or someone who might be susceptible to blackmail.
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Finance Manager for over 7-years
All states allow credit checks for jobs.
Some companies do them, some don't.
Just apply for the jobs, wow them in the interviews and with your references and wait to see what happens.
I had really bad credit once and still was offered tons of jobs.
Good luck
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I also had bad credit but you know the power of honesty goes a long ways.I told the interviewer why my credit was so bad it was because of a illness my daughter had I had no insurance for her so my bills racked up and I got behind.
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a company cannot check your credit without your consent (unless your are applying for a job that pays more than $75,000 a year). If they have to check your credit, you must first sign a consent form for them to do so.
Pengy, It is illegal for an employer to check an employees credit without his consent if the job pays less than $75,000!! You can sue.
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Sorry yes they can, and they do even of you make less than 75K just is part of the process of judging whether someone is responsible. Do I agree with it no, does it happen yes. part of life
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check this link its good
http://workathomedatentryworks.blogspot.com/
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