Is Bad Credit Hurting Your Job Search?

With unemployment rates in America hitting a high offor companies to run your credit & background
almost 10 percent in December 2009, the number ofcheck. Let them know straight away what they're
applications being received per position is skyrocketing.going to find. Any legitimate employer will tell you up
Couple the unemployment rate with the increasingfront whether your infractions are going to cost you
popularity of employers running credit &the position. Additionally, it demonstrates your desire to
background checks on potential employees and thebe honest with your potential employer. It also affords
situation is creating a Catch-22 for many job seekers.you the opportunity to explain yourself in a manner
This is because your credit profile may be sufferingthat abbreviations and codes on your credit reports
because you lost your job and as a result you havewon't do.
gotten behind with your bills and allowed an increasingWhat Type of Work is it?
amount of debt to be run up; the predicament is thatAre you tens of thousands of dollars in debt &
those same actions may currently be keeping youcollections and applying for a bank teller position? Many
from landing a job with prospective companies. Manyof the positions that require a credit check are
job hunters are unsure whether bankruptcy, creditpositions that entail the employee handling money
repair services, or simply applying to a myriad offrequently. Whether it is appropriate or not, employers
positions in the hopes that there is no credit check isare obviously going to view you as a potential risk.
their best alternative.Though more and more employers are running credit
Even lawmakers are taking notice of the situation. Inchecks recently, the bulk of them are financial
July of 2009, H.R. 3149 was introduced byinstitutions, the government, and companies dealing in
Representative Steve Cohen of Tennessee. The billlarge amounts of cash or products.
would make it illegal for prospective and currentCan Bankruptcy or Credit Repair Services Help?
employers to make "adverse decisions" based onYes and no. If you need the issue resolved before a
credit checks. Even if this does eventually manage toprospective employer pulls your credit in the next few
run the gauntlet of Congress to become law, it stilldays, then neither of these solutions is going to help
doesn't help Americans who are looking for jobsyou get that job in that timeframe. Both bankruptcy
today.and credit repair services are time consuming
So where does that leave the considerable number ofprocesses that need to be looked at long before they
job seekers who currently face this predicament?can be properly implemented.
Well, there is very little that people can do to changeWhile there are laws to prevent discrimination against
their credit profiles over short periods of time. So inthose with a bankruptcy on their credit reports, the
reality you need to understand the financial choicessame cannot be said if you are simply in debt. Again,
that you've made and demonstrate to potentialthis is another Catch-22 since bankruptcy will generally
employers that your credit reports do not define you.ruin a credit profile for a minimum of 2 years, affecting
There are a couple of steps that should help if you arethe score for longer as it remains on the report for up
one of the many in this exact situation.to 10 years; but at the same time there are no laws
Know What's on Your Credit Reports.against discriminating against those in need of just
Job seekers can't defend their financial history if theysome simple credit repair, which can take anywhere
are unaware of what their credit reports are saying tofrom 3 to 12 months to have properly done while
employers. Credit reports are free every 12 monthsleaving your credit score intact.
from each of the three major credit bureaus -Remain Confident.
Experian, Equifax and TransUnion. They will not showUnless they've lived under a rock for the past few
you a credit score, but they do list your entire credityears, everyone is aware of the state of our
profile over the last 10 years exactly as employers willeconomy, and accordingly, the state of individual's
see it.finances. Perhaps you ran up a bit too much debt,
As a job seeker you need to be prepared to answerperhaps you got a bit behind on some of your bill; so
any questions, this includes questions about yourwhat? It's likely that you're not exactly in the best
financial history as well as your work history. If youposition to bring everything current if you're out there
seem hesitant or confused in your knowledge of yourlooking for a job. Employers do understand. So, the
own finances the hiring employer is going to questionbetter prepared you are to discuss with them your
your reliability and your honesty.individual situation, and your strategy to get your
Be Honest with Potential Employers.finances back on track, the better shot you have over
Once you've analyzed your reports and see whatanother applicant who comes across as just numbers
derogatory items are on there, you may be able toand codes listed on a credit report.
save yourself the time and stress involved with waiting