This is part 3 of a three part series regarding Money and Your Financial Health. It is important to again discuss the importance of your Credit Report and Credit Score in relation to your obtaining employment and the possibility of advancement in your current employment.
It is not unusual for prospective employers to request your credit history as part of the background check. Under the Federal Credit Report Act the prospective employee must provide written approval for such access to this history. It is important to read all paperwork regarding the background check prior your signature.
There are three reasons for a prospective employer to request your credit history. They are:
- It is possibly used as a tool to make a final decision between two equally qualified candidates. It would be better to enhance your adequacy for the position by demonstrating your personal financial stability.
- A poor credit history and credit report might indicate the chances of future financial stress which could lead to the possibility of decreased productivity.
- A company will be more reluctant to take the risk with a candidate if the position is in the C-level such as accounting or finance which might demand that the candidate have access to the company’s banking information.
If you have experienced circumstances which negatively impact your credit history, such as a lay-off or medical crisis, it is advised that you add a statement to your report discussing the situation. You can demonstrate that you have been responsible in reviewing your record and indicate how you intend to resolve the financial issues.
Promotions are often times where an employer will request a credit review. If relocation is necessary, housing could be difficult if there are credit issues. Again added stress on an employee is not beneficial to the employer.
Your history of financial responsibility should be another tool to demonstrate your capacity to be an excellent employee!
