Guest Author - Gwendolyn Thompson
The majority of employers will request that an applicant sign a waiver to complete a credit check during the interview process. The Society of Human Resource Management has determined that nearly sixty percent of employers currently will run a credit check on their job applicants.
The impact that your credit history may have in determining if you get a job depends on what is on your credit history report and if you sign the waiver for the employer to retrieve your report. Employers will use your credit report as a character reference to prove irresponsibility.
They cannot pull your credit report without your permission. Most people will give permission in fear of not being considered for the job, but in reality it is a form of job discrimination and should only be permitted if the job requires handling the companies assets.
A credit check was designed for use in determining the irresponsibility of someone defaulting on a loan and financial credibility. Credit checks should only be used for credit and financial purposes and should only be permitted if the job responsibilities require a direct relationship to the financial history.
Bill H.R. 3149 has been introduced and will amend the FCRA to prevent employers from using credit checks for employment. If you give permission for a credit check the FCRA will allow the employer to check your credit history periodically for the purpose of retaining your employment.
Your credit history will not show your credit score but will show mortgage and consumer debt, delinquencies, repossessions, debt level, charge-offs and bankruptcies. A high debt to salary ratio on your credit check can be interpreted by your employer that you are prone to stealing.
There are good reasons that credit goes bad. If you choose to give permission for a credit check limit the impact your credit issues will have in being hired by letting the employer know before hand that your credit history may not be good and that you would appreciate the opportunity to explain.
Have other evidence ready to prove that you are a responsible person with good character by providing letters of recommendation and excellent professional references at the interview before your credit history is obtained. Remember, a credit check is just one part of the hiring process.
Follow up and inquire why you were turned down for the job. It is illegal to reject applicants for a job because of credit issues unless the employer provides you with a copy of the credit report that they used and informs you that you were rejected for the job due to your credit history.
