Bad Credit and Background Checks

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					                     Bad Credit and Background Checks
Background checks may seem to be a bit of a mystery to you, especially if you do not
have a criminal record or some other factor in your past that may affect your being hired
for a job at a company. However, you should consider the fact that there are many
companies who will refuse to hire someone with a bad credit history and rating.
Sometimes, having bad credit is just as bad as having a criminal record, because several
companies will flat out refuse to take a chance on someone with a terrible credit history.

While it is prohibited for hiring companies to use bankruptcy as a reason to not hire
someone, it may not matter because people who filed for bankruptcy likely had bad credit
prior to doing so. In this way, there is a certain loophole for managers who do not want to
hire job seekers with money problems and a history of bankruptcy.

You can have a completely clean criminal record, but if your credit report shows that you
have issues handling your debts, employers may overlook you just as completely as if
you were a convicted felon. The best thing to do is to keep your finances in control in the
first place, so you do not run into problems with finding a job somewhere decent.

Job seekers in seven states can rest assured that the laws in their state restrict credit
checks ordered by employers: Washington, Maryland, Connecticut, Illinois, California,
Oregon, and Hawaii. These states have strict laws about running credit checks for a
background check on a potential employee. Employers will only check out your credit
history if there is a specific business need for it, such as the fact that you will have a
corporate credit card or you will handle their money.

The problem with employers checking your credit, especially if you have been
unemployed for a long time, is that you are probably behind on bills since you have not
had a job. This causes credit problems, and of course, your credit can affect your chances
of being hired, so you get stuck into a horrible vicious cycle of bad credit and
unemployment and unsuccessful job searches.

The good thing to know about your credit history being looked at by employers is that
there are some credit services like Experian which will remove information from the
credit report, such as your marital status or your age. This is because prospective
employers are not allowed to use this information in the hiring process. More credit
companies should comply with this idea, because it helps to keep the hiring process as
fair as possible.

The other good thing to know is that an employer will never check your credit without
letting you know they will be doing so, which means you will not be blindsided by their
questions later on, if they have any. Keep in mind that you should be maintaining your
credit report with information that is accurate. Employers who encounter errors on the
credit reports of potential employees tend to choose someone else to hire, because if they
allow errors on something as important as a credit report, how many errors might they
commit in the workplace?

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Tags: Credit