Having good credit is not only important when applying for loans and credit cards, but also certain jobs. About half of companies with US locations include a financial or credit screening in the background check they run on job candidates. Potential employers are especially likely to check your credit report if you’re applying for a job where you’ll be handling money or getting a security clearance. If you’re wondering whether jobs asking for credit scores during the hiring process is normal, here’s what you need to know.
Is Jobs Asking for Credit Score Normal?
As mentioned above, many employers include a financial screening in the background check they run on potential employees, especially if you work in certain industries like financial services. Employers want to make sure that anyone managing money or getting a security clearance is responsible with their finances to avoid problems like bribes and embezzlement. Employees who have large amounts of debt may be more willing to accept a bribe or steal money, which can be a security risk for companies and government organizations.
However, the credit report that employers pull differs from the one that lenders see when they check your credit. Typically employee financial screenings don’t show your actual credit score. They also exclude other private information that potential employers don’t need to evaluate your financial standing, such as your date of birth and account numbers.
However, if you have poor credit history, it will show up on the credit report potential employers pull. The report usually includes information about your payment history, account balances, and any bankruptcies or past due bills that went to collections. The background check will also show your legal name, past and current addresses, any criminal records or public records, and employment history. This enables employers to verify your identity and background before they hire you.
Potential employers usually need to get your written permission before they perform a financial screening. Keep in mind that an employee credit check won’t affect your credit score because it’s considered a soft inquiry. Some states and cities have their own regulations and may prohibit or restrict credit checks during the hiring process, so check local laws where you live.
4 Types of Jobs That May Require Good Credit
Jobs That Involve Handling Money
Employers may require workers in charge of handling money to be in decent financial standing. Bank tellers, parking booth attendants, and casino workers all process large sums of cash. So you may have trouble landing these roles if you have bad credit or a lot of debt. Fair or not, employers may be worried that workers experiencing financial hardships might skim some money off the top and steal from the company.
Military, Law Enforcement, or Government Jobs
Police officers and prison workers who are in financial trouble may be more likely to accept a bribe, so these roles often require decent credit history. You may also be denied a security clearance for having money problems, which can disqualify you from certain military and government jobs.
Keep in mind that each branch of the military may have different financial standards for recruits. For example, the Air Force might reject you if your monthly debt payments exceed 40% of your projected salary.
Roles in Financial Services
It’s easy to understand why financial professionals like accountants, certified financial planners, and mortgage loan officers are held to higher financial standards. Potential employers may feel that financial advisors who are bad at managing their personal finances may not be able to provide proper guidance to clients.
Lawyers
According to Self, a lawyer’s license can’t be revoked simply for having bad credit or going bankrupt. However, employers may worry that lawyers who are deep in debt will be more likely to steal from clients. Another concern is that lawyers may pad their billable hours to increase their earnings and mitigate their financial troubles. So it can be harder to find work as a lawyer if your finances are in bad shape.
What Can Job Seekers Do to Improve Their Chances?
Job seekers who are hoping to land a job in one of these fields should try to pay their bills on time and stay in good financial standing. Make sure you’re dealing with any debt or unpaid bills you’ve incurred instead of ignoring them. Employers may be more understanding about financial problems if you explain why you got into debt and have a plan for paying it off.
Don’t forget to review your credit report before you start applying for jobs. You don’t want to be caught off guard by any negative financial information employers find. If there are mistakes on your credit report, try to correct them so they don’t show up when employers review your finances.
Have you encountered jobs asking for credit score? Share your experiences in the comments!
Read More
5 Good-Paying Jobs that Don’t Require a Degree
When You Want to Quit Your Job, But Can’t
Here’s The Average Credit Score By Age
Come back to what you love! Dollardig.com is the most reliable cash back site on the web. Just sign up, click, shop and get full cash back!
Vicky Monroe is a freelance personal finance and lifestyle writer. When she’s not busy writing about her favorite money saving hacks or tinkering with her budget spreadsheets, she likes to travel, garden, and cook healthy vegetarian meals.
Comments