What Type of Credit Information Would Keep Me From Getting a Job?

Employers are always looking for new ways to better screen job applicants. When resumes, interviews and references are not enough, an employer may look to your credit report to see if you are worthy of a position in the organization. Some job candidates are even finding out that a less than pristine credit history can be the factor that prompts the employer to disregard the application and send a notice of rejection.

Money Handling & Monitoring Jobs

For jobs requiring direct handling of money or profit and loss responsibility, many employers will look at a credit report for activity that may indicate irresponsible financial behavior or tendencies. Employers may be hesitant to hire you to make financial decisions within an organization if you have a history of poor financial management, charge-offs and late payments.

Company Policy

In some cases, an employer simply has a policy requiring a certain credit score or the absence of negative remarks for you to be considered for employment. Some universities have a policy of not hiring applicants for professorships if student loans are still outstanding or in default. Companies are allowed to cite poor credit reporting as part of the reason for not hiring or terminating employment, but only if you agree in advance to having your credit report screened.

Focus on the Job

If your credit report is laden with wage garnishments, judgments and late payments, the employer may question your ability to focus on the job. Additionally, the employer may consider that the salary that would be available for the position may not be adequate to cover these obligations. An employer may also be concerned about the paperwork and additional administrative workload involved to garnish wages. This may lead an employer to choose a candidate with a clean history for the job, since bringing him on board would require fewer headaches.

Rules Apply

There continues to be great debate about the employer's ability to use a credit report in the hiring and firing of employees. Fortunately, there are rules that protect the employee in the event the employer wants to use information on the credit report to make an employment-related decision. The employer must request and be granted permission from the employee to check the employee's credit and the employee must be notified if any of the information from the report was used in making an employment-related decision.