Is your bad credit history keeping your from getting a job? Bad credit is certainly not a positive when job hunting and having a lot of credit problems is one thing that potential employers are very leery of when they run background checks on potential hires. Why is it that finding a job with bad credit can be so difficult? How does one go about getting a job with bad credit?
Bad Credit = No Job (in the eyes of many employers)
The Wall Street Journal recently reported that more and more employers are conducting background checks that ultimately dive deep in an individual’s credit history before making an ultimate hiring decision. It seems that there are two things that are combining into a “perfect storm” that makes finding a good job with bad credit that much more difficult:
A) The recent mortgage mess & economic downturn has made it more and more common that job seekers have loan defaults, mortgage modifications, home foreclosures, high credit card debt, etc. in their credit history – all of which are warning signs to potential employers.
B) The current high unemployment rate allows employers to be that much more picky about whom they choose to hire. Everything else being equal, an individual with bad credit is considered to be a higher risk to an employer than an individual with good credit.
Can Bad Credit Keep You from Getting a Job?
Bad credit can most certainly prevent someone from getting a job. Not all jobs and job qualifications and criteria are the same of course but the federal Fair Credit Reporting Act allows employers to run a background check and credit report check on prospective employees as long as the employee consents (refusing to let a potential employer run a background check or check your credit history is usually a red flag to employer’s that is almost bigger than the red flag that goes up with a very bad credit report so refusing to sign the credit check waiver is usually not advised if you really want a shot at getting the job).
How to Get a Job with Bad Credit
There are two main courses of action that one can take to get a job with bad credit:
A) Find an employer that will hire someone with bad credit. Often this is just a numbers game so be prepared for many different interviews and many different job applications because you will likely have to wade through a lot of chaff to get to the wheat.
B) Improve your credit score. This sounds easy but of course it requires discipline, hard work, and common sense. A few practical steps would be to get a free copy of your credit report which you are entitled to once per year by law at AnnualCreditReport.com although you will most likely also want to sign up for a paid service that will not only give you access to your credit report but also your credit score and credit report monitoring to let you know if there are changes to your credit report so that you can correct any errors and keep track of your (hopefully) increasing credit score. You can view some of the various credit report monitoring companies at the free credit score page. Also, use a secured credit card or a bad credit credit card that reports to the 3 major credit reporting bureaus to make purchases and pay off the balance in full each month as a history of on time payments and low credit card balances will increase your credit score over time.
Do YOU Have any Bad Credit Job Hunting Stories?
What ideas do YOU have for finding a job even with bad credit?
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