Do You Need to Repair Your Credit to Get a Better Job?

By
Real Estate Broker/Owner with The Master's Key Realty LLC -Windsor, CT - HARTFORD COUNTY REB.755648

Finding a New JobYou're out of work and you need a new job; you're getting behind on the bills. Or you may be working, but there's still too much month left at the end of the money. So you start looking for a new job that pays more, or a second job to bridge the gap.

You update your resume and begin submitting it to some promising job offers. The interview process is going well. You're waiting for the final okay, but nothing materializes. What's going on?

After this has happened more than once, you call back and ask a few more questions. Eventually, some kind-hearted soul tells you, "I'm sorry, but your credit report does not meet our guidelines."

Well, isn't that absurd? You're trying to get a job to improve your financial situation, and they're telling you that you can't get a job because of your financial situation. That hardly makes sense, I'll agree. But as with everything, there are always two sides to the story.

The Best Candidate

While you are looking for the best job, your prospective employers are looking for the BEST candidate to fill their job opening. A poor credit history, while sometimes due to a conflagration of unfortunate circumstances, may indicate something else to the employer.

Responsible and Reliable

Your prospective employer wants someone responsible and reliable to fill their job opening. While late payments may simply indicate a momentary income shortage, it may also reveal something more to the employer. They may interpret late payments as revealing a lack of a sense of responsibility. Or perhaps it indicates disorganization, a lack of focus, or not paying attention to details (like due dates), or the inability to properly judge what's important and to set proper priorities. Any of these things translated into the job situation would be detrimental to the employer meeting their goals.

An Issue of Commitment

If you have too much debt, the employer may believe that you are too unstable to make a long-term commitment. I know, you're thinking "I really need this job to straighten out my situation". But the employer may be thinking that this new job won't impact your situation enough, and you'll have to move on to another job, or a relative's home, or out of state. In such a case, the employer will spend time, energy, and money training you, only to find you moving on before his outlay of expenses are recouped; and now he's got to repeat the process all over again with someone else.

Desperation?

Desperation and Credit ScoresBeyond all this, a poor credit history may indicate some level of "desperation". An employer may be concerned that the worse the credit history, the greater chance the prospective employee might take advantage of the company to meet their needs. While you might never consider it, many employees in poor financial straits might raid the cash drawer, pilfer the supply cabinet, steal inventory for private use or resale, or for the more sophisticated and knowledgeable, alter the books.

I've personally seen employees "take home" merchandise and then attempt to sell it on eBay. I've seen merchandise purposefully damaged so it had to be scrapped. The employee then "sold" it to a friend at a bargain basement price because of the cosmetic damage, and pocketed the money. And one young employee lifted the manager's car keys at the end of his shift from the manager's coat pocket in the break room, and stole his boss's car from the mall parking lot. It was gone for days!

So, while checking your credit may seem unreasonable, it can also be revealing. A good manager is one who makes hiring decisions that benefit the company first. In a competitive job market, everything counts. Even your credit history.

 

Creative Commons licensed photo by Lazurite @ http://www.flickr.com/photos/lazurite/3607957069/

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Serving the North Central Connecticut region, Hartford County, and the communities of Windsor, Bloomfield, Hartford, East Hartford, South Windsor, Manchester, Windsor Locks, Suffield, Enfield, East Windsor, Somers and the Granbys...

Opening Doors to Home Ownership . . . The Master's Key . . .

Residential Sales, Short Sales and Foreclosure Prevention, Multi-Family and Investment Properties, Condominium and Property Management

Lisa Orme on LINKED INRealtor logoThe Master's Key Realty fan page           LISA ORME        Lisa Orme on TWITTEREqual HousingRSS

 

Licensed in the State of Connecticut, ABR, CRS, GRI, PSCS, SFR, Notary Public, Lic. #REB.755648

 Broker/Owner of The Master's Key Realty LLC, 340 Broad Street, #320, Windsor, Connecticut 06095

To contact Lisa, call 860-688-1400 or send an e-mail to lisa@masterskeyrealty.com

Copyright, Lisa Orme, 2010.  All rights reserved.

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Credit 101
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Tags:
credit scores
credit checks for employment
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Rainer
370,054
Tish Lloyd
BlueCoast Realty Corporation - Wilmington, NC
Broker - Wilmington NC and Surrounding Beaches

Lisa, While I understand this in theory, we are in a Reality Mini-Series which has been brought-on and exacerbated by so many external forces beyond most people's control that I believe this should not be the standard right now.  I also do not believe anyone should be able to check your credit unless and until a decision has been made regarding the abilities of the potential employee.  Then and only then should the potential employee be asked to sign a document which will allow their credit to be run.

This across-the-board approach to running credit checks and credit reporting is, in my opinion, an abomination and an intrusion on ones privacy.

Oct 05, 2010 09:23 PM #1
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Patricia Kennedy
Evers & Company Real Estate, Inc. - Washington, DC
For Your Home in the Capital

Lisa, I just read your post and the comment, and you know?  The whole concept of privacy is a thing of the past. 

Oct 05, 2010 09:33 PM #2
Rainmaker
495,207
Lora "Leah" Stern 914-772-4528
Coldwell Banker, 170 N Main Street, New City NY 10956 - New City, NY
Real Estate Salesperson

Lisa, though in theory I understand why an employer would want to check an employees credit, for the financially strapped, this is a bummer.  Though I also understand Tish's point of view, that credit chek's are an invasion of a person's privacy, I agree with Pat.  In this "internet age" privacy is a thing of the past.

Oct 05, 2010 09:40 PM #3
Rainer
172,089
Lisa Orme
The Master's Key Realty LLC -Windsor, CT - HARTFORD COUNTY - Windsor, CT
Broker/Realtor, ABR, CRS,GRI, PSCS, SFR, Notary Pu

Tish- I agree with you 100%, but this is the reality, and I am just the messenger...

Patricia - Yes, very unfortunate...Big Brother is everywhere, don't you know...

Leah - Yes, it is a real bummer. Kind of traps some people who are really trying to improve their situation. You'd hope in the current economy there would be a little more grace...

Oct 05, 2010 10:07 PM #4
Rainer
370,054
Tish Lloyd
BlueCoast Realty Corporation - Wilmington, NC
Broker - Wilmington NC and Surrounding Beaches

I know our privacy has been compromised in so many ways.  I don't disagree with your post at all; I just think allowing people who aren't qualified to have access to a potential employees' credit before they are even considered for a job which they desperately need is absurd.  Guess it just really hits a nerve with me to see good people constantly pushed down and held back when they really need and can perform the job, in many instances. much better that the incompetent person with poor skills and a better credit rating.  How in the world is a person ever going to get back on their feet?

It's still a great post and I'm normally not so passionate about things -- just sayin'   .   .   .

Oct 05, 2010 10:10 PM #5
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Lisa Orme
The Master's Key Realty LLC -Windsor, CT - HARTFORD COUNTY - Windsor, CT
Broker/Realtor, ABR, CRS,GRI, PSCS, SFR, Notary Pu

Tish- Heavens Tish I disagree with my post - at least with whether what's going on is right or wrong! I know people who have been downsized (less hours and/or less hourly pay) who have been looking for more than 18 months for a better position. That kind of financial stress alone can damage your credit, so I'm sure that a bad credit score is sometimes just what I mentioned: a conflagration of unfortunate circumstances.  I think it's horrible that people who sometimes really are just stuck in a bad situation get to stay stuck because somebody thinks they should pull a credit report before they hire them.

Oct 05, 2010 10:41 PM #6
Anonymous
Anonymous
Anonymous

As the Boy Scouts say, "Always be prepared." Be prepared for the questions, but perhaps like my attorney says, "Don't volunteer information and make your answers short and sweet."

Oct 05, 2010 11:30 PM #7
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172,089
Lisa Orme
The Master's Key Realty LLC -Windsor, CT - HARTFORD COUNTY - Windsor, CT
Broker/Realtor, ABR, CRS,GRI, PSCS, SFR, Notary Pu

Russell - I heartily agree, but unfortunately, sometimes the question is never asked. Someone has a great interview, and as a "final check" someone in personnel decides to pull a credit report (or perhaps that's their new standard modus operandi), and no one goes back to ask "what happened?". They just make a judgment and move on to the next prospect. And with the high unemployment rates, there are still other good prospects for them to consider!

Oct 06, 2010 01:08 AM #8
Rainmaker
358,512
Scott Hayes
(512) 786-8300 - Austin, TX
Realty Austin, Broker Associate

Lisa,

 

Employers, insurance companies, and bonding organizations are all looking at credit these days. Good post, pointing out things that most consumers don't know.

Oct 06, 2010 01:26 AM #9
Rainer
172,089
Lisa Orme
The Master's Key Realty LLC -Windsor, CT - HARTFORD COUNTY - Windsor, CT
Broker/Realtor, ABR, CRS,GRI, PSCS, SFR, Notary Pu

Thanks Scott- I'm sure many people aren't aware that their credit report could be interfering with them getting the next job -- that could help them fix the things that went bad on their credit report! A horrible catch-22.

Oct 06, 2010 01:34 AM #10
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Joni Staples
Berkshire Hathaway Home Services - Anderson Properties - Huntsville, TX
Your Huntsville / Lake Livingston Area REALTORĀ®

I agree with comment #1, but it doesn't really matter what I think. Like it or not, it IS how it's done and people need to know about it! Thanks Lisa for spreading the word.

Oct 06, 2010 10:57 PM #11
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172,089
Lisa Orme
The Master's Key Realty LLC -Windsor, CT - HARTFORD COUNTY - Windsor, CT
Broker/Realtor, ABR, CRS,GRI, PSCS, SFR, Notary Pu

Joni - I'm with you - it's frustrating at best - but what you don't know CAN hurt you! thanks for stopping by!

Oct 07, 2010 12:23 AM #12
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Lisa Orme

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