How Bad Credit Can Affect Job Prospects
by Jason Morris
Many Employers Use Credit History as a Tool in Their Pre-Employment Screening
By TORY JOHNSON
We all know that our personal credit history affects our ability to secure a home loan or open an account at a department store. But most Americans are unaware that bad credit could cost them a job.
Employers can refuse to hire applicants because of their credit history.
Many employers use credit history as a tool in their pre-employment screening as just one measure of judgment and character. If you can’t manage your financial obligations, they wonder if it’s a sign of irresponsibility. If your monthly debt payment is higher than your salary, some employers worry that it may distract from your performance.
Critics of this practice say it’s unfair for personal credit history to be used when judging professional qualifications. They say there’s no link between poor credit and job performance. Many of these people have hit rough patches, and now they’re caught in a vicious cycle: To pay down their debt, they need a job, but they can’t get hired because of their debt.
Tags: credit reports
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