Guest Author - Kristen Welcome



Every job seeker knows that a good resume and cover letter are important to your job search. But did you know that it may also be important to have good credit? Read on to find out how your credit can affect your job search.

Many people consider their spending habits, bill-paying habits and old legal judgments to be private matters. However, many employers include a credit check as part of the background check that they perform before hiring an applicant. This is especially true when an applicant is considered for a financial position with a company. Companies assume that if you aren’t careful with your own finances, you may be equally reckless with theirs.

If you’re like many people, you may question whether this is a fair practice, especially if the job you’re applying for does not involve money management. Of course, you aren’t required to allow a potential employer to pull your credit, but if you refuse to allow a credit check, this may automatically disqualify you for the desired position.

Of course, not all employers check credit reports as a matter of course. If you have rotten credit and you’re sure it will hurt your chances with an employer, or if you’re against credit checks by employers as a matter of principle, you can focus your search on smaller companies that are less likely to check credit reports.

Before you start wondering what potential employers may be learning about you, don’t panic: employers are not allowed to pull your credit without a release signed by you. This means that if an employer is going to pull your credit as part of the application process, you will know about it before it happens, and you can take that opportunity to explain anything negative that may otherwise count against you. For instance, if you have a bankruptcy in your past that taught you a great deal about money and budgeting, you can try to turn a negative into a positive that a hiring manager may respect.

Finally, even if you don’t have any big negatives in your financial history, it’s a good idea to check your credit reports before you begin a job search to make sure there are no inaccuracies that could hurt your chances. Many people are surprised to learn that there are inaccuracies on their credit reports that are affecting their credit, but it happens more frequently than you may think. Identity theft, family members with similar names, and simple human error can all result in mistakes on your credit report that can bring down your credit score, and likewise affect your job search. Therefore, it’s a good idea to contact all three credit bureaus—Experian, Equifax and TransUnion—and request a copy of your credit report. If you find mistakes, each of these bureaus have a process that can be conducted online to dispute the mistakes and have them removed from your credit report.