3 Reasons Why Bad Credit Can Lead to a Job Loss

The most discussed question in recent years has become the innovation, which allows the employersinterfere in your sacred privacy and check your credit score. Now your personal credit history can be investigated and added to consideration process by the employer in order to form an opinion about the applicant and make the final decision whether to hire you or not.

Consumers Get More Pressed with Credit

But for bad credit, the majority of people would just flitter along in life unaware of the importance of keeping their financial life in order. Many people know that the FICO score, or to put it simple, credit score is important for getting a loan, whether it’s a new house mortgage, car loan or financing repairs or new furniture. The reasons for it are obvious, but the influence of credit score on the hiring process can have a devastating effect. So, consider this service to manage personal finance easier.

Let’s just imagine the situation, when a young man, having just graduated from a top-notch University with a high GPA, promising and inspired, sends out resume to get plenty of attractive job offers. Taking into consideration the internship at a Wall Street company, the thing he expects least is a pile of rejection letters. Going deeper into the details he finds out the low credit score is to blame. The option is to make use of credit repair services, but it will not change what has already been done- rejection received. The main question here is whether the employer really has the right not to hire applicants with low credit score being the only reason.

Credit ScoreIs the Indicator of Trustworthiness

A lot of companies now pay much attention to the credit score, equating it to the trustworthiness of the applicant. There is some logic in it, if you fail to cover your bills timely; you are likely to show little discipline at work. The drawback of such approach is that nobody gives you an opportunity to explain your situation or mitigating factors, which may possibly exist.

Judgment Based on Credit Score Casts a Shadow on Other Areas

If a person with poor credit score applies for a job position in a bank, problems with his credit report may mean problems with managing funds. If a person fails to handle his personal finances, he is not likely to be reliable enough for dealing with hundreds of thousands of dollars if hired. Though the example may seem too simplified, but the logic is really just like this. The job prospects are not very attractive for people with poor credit, unless they find somebody in charge for hiring staff and can explain the circumstances, which have led to the credit score like it is at this very moment.

Financial Institutions Value Credit Greatly

The institutions like big banks, financial corporations, accounting companies or law firms are reluctant to deal with somebody with bad credit and invest in such employees. The abundance of the candidates with proper credit score gives them the opportunity of choice and they do not wish to listen to the reasons or spend time on giving chances to people with poor score. As a rule the HR departments of financial institutions are very precise about the qualities they seek for in the applicants for the vacant positions. If the person does not meet the requirements 100%,he is likely to be pointed to the door without any chance to give any explanations. Bear in mind that bankruptcies and foreclosures, are also great job killers lately, though being very common under current circumstances. Looks like Catch 22 for a lot of people. One more thing to be noted is that most of us do not check the credit reports regularly and do not know about the mistakes made by credit bureaus in the reports. All the errors made should be discussed and erased, because the last thing everybody wants is to lose chances to be employed in the company of his dream due to the discrepancy in the credit documents.

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