It's not surprising to me that some employers - particularly those in the financial realm - do a credit check on their prospective employees. But a report from ABC says that more employers are using credit check to determine responsibility and even job performance.

The article talks about how the practice is still somewhat disputed but some argue that if you have bills higher than your salary that this will distract from job performance. Whether or not you agree or disagree with this practice, the fact is you may have to deal with it. So here's some of the advice offered by Tory Johnson of ABC:

Read the fine print. Under federal law, prospective employees must give permission for employers to conduct background checks, including credit checks, so none of this happens behind our backs. Yet some 80 percent of Americans, according to a Visa survey, don't realize that credit history can be used in pre-employment screening. Whenever you sign an employment application, read the fine print. Most of the time, you're signing a consent and disclosure clause that grants your permission to the employer and its designated third party vendor(s) to conduct a background check. Be aware of what exactly you're agreeing to upfront.

Bad credit, now what? If you have poor credit, it doesn't automatically mean you're unemployable. You should focus on three steps so you don't lose out on
positions. Check your credit report. Even if you're not actively job searching, everyone should know what's in their credit report. Under federal law, you have the right to receive a free copy of your credit report once every 12 months from each of the three nationwide consumer reporting companies. Don't bury your head; if you have problems with your credit or you find mistakes on the report, address them immediately with creditors and the reporting company. This will come in very handy should you find yourself looking for work.

Ask the employer's policy. Then when it comes to job searching, avoid oluntarily discussing credit history during the interview process. There's no need to knock yourself out of the running prematurely. When you receive an offer that's contingent on a background check, ask directly, "I'm thrilled at the prospect of working here. What is your policy on background checks? I'd like to know what specific screenings you use and the general timeframe for that process." At this point, they've said they want you, so you're in a good position to ask such a question with relative ease. Most employers will gladly walk you through their process.

Speak up with confidence. If an employer says the background screening includes a credit check — and you've seen the negative activity on your credit report — then you should consider speaking up. You can say, "I'd like to tell you what in advance you're likely to find on my personal credit report. Please allow me the opportunity to explain it, too." It's important to have a solid rationale. Maybe you hit a challenge because of an unexpected layoff, a divorce, a medical necessity, or a problem with your mortgage. Maybe there are mistakes on your report that you're working to fix.

Read the full article: How Bad Credit Can Affect Job Prospects, ABC News


The article provides pretty solid advice in dealing with a uncomfortable topic. I think what is important is to remain rational and be confident in your skills in the job you're interviewing for. Knowing your credit score and how to approach it (if you have negative activity) will really help you in being prepared in an interview, which helps in your confidence level and can really effect the employer's decision.



- Rosie Reilman, Photo by The Consumerist