Can you legally be turned down for a job for bad credit?

[liveandchi]

It was a terrible day yesterday. I thought I found the perfect job. I was well qualified for and it was something that interested me. I know I could help the company so much. And it would have brought in extra income that we need.

I heard that I was not offered the job because of our credit rating. Is that legal? Isn't it discrimination if I am better qualified than the person who was offered the job? Can they deny you a job because of your credit rating?

I'm just devistated.

[PrincessPerky]

I am so sorry, I know that wont help much, but I am sorry.

[terry1156]

I'm very sorry to hear that this happened to you. Hang in there. Things will get better.

To answer your question, no, it is not illegal or discrimination for them to do it. More and more companies are using credit ratings to rate job applicants and as you have found out, a bad credit rating can hurt you in the job hunting process.

[moneyrant]

Bad credit = untrustworthy in comapany eyes. Can't blame them.

[terry1156]

Don't be offended by moneyrant. He doesn't mince many words. But he does bring up the point why companies do credit checks. Just like with insurance, people who have poor credit ratings are a bigger risk. That doesn't mean all of them will be bad, but if a company has a choice between an emplyee with good credit and one with bad, the one with good credit appears to be more responsible. That is why your credit rating is important.

Again I am very sorry to hear that this happened to you, but hopefully it will give you motivation to improve your credit so it doesn't happen again.

[xboxundone]

as everyone said we are all sorry to ehar your situation but unfortunately there isnt much you can do about it. Only thing is maybe be up front on your next interview if you know they do credit checks and maybe explain why as it might be due to your early years etc..... hope all works out....

[amomof4]

My daughter got turned down for a job at a casino because of bad credit. They felt that it would be too tempting to steal if someone were in financial hardship. Of course the job would have gotten her out of financial hardship...

[xboxundone]

yes unfortunately its kind of a catch 22 as tehy are trying to get out of there financial situation and in turn need a job to do it!

[shelbylovesmelby]

I don't know about legally. But I think for those who have had alot of bad spending habbits & debt; they are looking probably to see many qualities in you such as reliability & responsibliity. Though I would think if you worked in finances they'd want to see if you are hard up for $ as an indicator for theft ect.

[pearlieq]

I can understand how disappointed you must be. That is a bummer!

It is perfectly legal and becoming more and more common to use credit history as a factor in hiring, especially in a job where an employee may have any access to money or financial data.

[Ima saver]

Yes, Pearlieq is right, it is perfectly legal and it very common now. That is why having a good credit score is important. I wonder if Dave Ramsey would get turned down, he says he has no credit score??

[creditcardfree]

Originally Posted by Ima saver

Yes, Pearlieq is right, it is perfectly legal and it very common now. That is why having a good credit score is important. I wonder if Dave Ramsey would get turned down, he says he has no credit score??

Fortunately, for Dave Ramsey he doesn't need to get a job from anyone else at the moment. I know he talks about how it is harder to get low auto insurance premiums, without a credit score.

I know the military checks officers and those with top secret clearances for their financial situation. If your finances aren't good, you would be more tempted to give out sensitive information, ect for money. I guess I mean bribery, right.

To OP, so sorry that the job didn't work out. There are probably many companies that don't do the credit checks...so you aren't out of luck with finding a job. Keep your chin up.

[sweeps]

Yeah, Dave Ramsey can afford to have a nonexistent credit score. Unfortunately his listeners have to go out and get jobs and can't afford to buy their homes with cash.

[budgetmom]

Don't feel too bad about it. Several years back I was turned down when I applied for a part time job (figured if I got it it would help me get out of debt) at get this a gas station. And it was because I had to handle money and the whole temptation thing. It was a bumber. I found a different job though. It wasn't the one I wanted (but the gas station wasn't either), but it was a job. But, I didn't fix the problem and now here I am years later wondering if I'll be able to get that position because I have bad credit. Do take the advice given to you. Find a job, any job, asap and get that credit cleaned up!

[The Budget Man]

Originally Posted by moneyrant

Bad credit = untrustworthy in comapany eyes. Can't blame them.

Two things I learned very early on. People with bad credit ratings can be great employees. Mature people can also be great employees.

The looser here is the company that is missing out on hiring people who have the motivation to earn.

Don't give up.

Enjoy Your Money
The Budget Man
www.PersonalityBudgeting.com
The solution to bad credit is a budget that works!

[bjl584]

No, it's not illegal. Perhaps unethical in a way, but not illegal. I guess they figure that someone with bad credit is irresponsible and wouldn't make a good employee. Unfortunately, the company is not going to look at what you have done to repair your past and your credit score. Just like most things with large corporations, they are only concerned with the numbers and the raw data. I'm sorry to hear that you got turned down for that job, but maybe you didn't want to work for them anyway seeing as how they only care that you messed up in the past, and that they aren't really concerned that you are turning things around now. You'll find a better place to work. Keep at it.

[vsjhoc]

Next time you fill out a job application, read the fine print. Quite often it says that you are giving the company your written permission to check your credit file. The prospective employer can't legally pull your file without your written consent. And so you have given them permission to make their emplyoment decisions about you at least partially based on your credit.

[Gruntina]

Wow! One of my friend wondered to me if she was not getting hired for any of the positions she applied for in the last three years was because she had bad credit score. I did not think it was possible for a job but it was the reason why landlords would not accept her for tenets. She has bad credit because after her lay off, she depleted all of her savings two years later and still could not find a job. It leads her to use credit cards and so on.

Now I feel bad! She is really a good worker.

[sweeps]

That is pretty rough. I agree with the idea of judging someone's ability to be responsible by looking at how they manage credit. The problem is the FICO scoring system is not necessarily a good indicator of that. One example is how closing credit cards or limiting credit lines hurts your score instead of helping it. Also it's too easy for an identity thief or reckless creditor to destroy your credit -- which in turn can destroy your ability to get a job or insurance.

[boefixepa]

So sorry to hear. This happened to my aunt too. It's really frustrating some times! I know I had trouble with my credit score when my sister took advantage of me. I hate it that people use it sooo much. I wish they would look beyond the number and see WHY the number says what it says. I am sure there are loads of people out there with great credit scores who are lame employees, and visa versa. I consent that considering the score my not be a bad idea, but it should be understood and they should talk to you about it.

Chin up, keep hunting. You can do it!