How Bad Credit Can Affect Job Prospects

We all know that our personal credit history affects our ability to secure a home loan or open an account at a department store. But most Americans are unaware that bad credit could cost them a job. Employers can refuse to hire applicants because of their credit history.

Many employers use credit history as a tool in their pre-employment screening as just one measure of judgment and character. If you can't manage your financial obligations, they wonder if it's a sign of irresponsibility. If your monthly debt payment is higher than your salary, some employers worry that it may distract from your performance.

Red Cross Backs Off Intrusive Background Checks

The American Red Cross in 2006 announced that it would perform intrusive background checks on volunteers, including credit checks and mode-of-living checks. ARRL, supporting many hams who were Red Cross volunteers, protested. And like many others, I'm sure, I started finding other disaster-relief organizations to send money to rather than Red Cross.

ARRL now says that ARC's background-check policy has been moderated. There is a permission form, and it allows a check of name, SSN, and criminal background, and nothing else.

Check Your Credit Before the Boss Does

It's no longer enough to go to a job interview with your CV. A growing number of employers are checking a candidate's credit history before making an offer.

While your credit history may not be the determining factor, employers use it to fill out the picture for many candidates - and not just in the finance field.