JOB SEARCH / APR. 15, 2014
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How to Find a Job When You Have Bad Credit

Bad Credit

According to the Bureau of Labor Statistics, 9.7 percent of American employees are out of jobs and they have high mounting bills resulting from this. The long term effect of unemployment has been felt by so many individuals who rely on their credit cards to tide them over until a possible job opening. In some instances, late fees and increasing finance rates make it even worse. With all of these things taking place, no wonder many unemployed have plummeting credit scores; making it more challenging to find a job.

Why Credit Scores Have Become Important?

Employers, these days, are paying attention to a candidate’s credit report. Why? Well, most employees want to discover bad habits, unreliability and patterns before hiring someone who may become a security risk. A credit score that is below 700 presents a warning. If it is below 650, employees become concerned, but anything below 600 is a red flag. While some employers would like to turn a blind eye, company policy does not allow them to be that sensitive to bad credit.

In such a case, what does the job seeker do when he/she has bad credit? Here are some tips below on how to find a job when you have bad credit.

Know Your Rights

The Fair Credit Reporting Act prevents employers from checking your credit or doing a background check without first asking for your permission. The employer has to also tell you the credit bureau used to pull your credit and you should get a copy of your credit report to confirm accuracy.

Know What is On Your Credit Report

Before you apply for a job, pull your own credit so that you don’t run into any surprises while interviewing. Your credit report also provides information needed to clean up your credit. Keep monitoring your credit to keep abreast of any changes or inaccuracies.

Be Honest

So you have walked into the interview wondering how to approach this credit issue. What do you do? When asked, be upfront and let your employer know of your situation. Show that you are doing everything to remedy the situation. An employer would rather know that you are trying than lying about it. Reveal the steps you are taking to handle the situation in a responsible way. Show your prospective employer that your credit situation will not affect your job performance because you have learned from your mistakes. Discuss your value to the company and how you can use the lessons learned to help the company.

Be Calm and Composed

If a prospective employer is pulling your credit report, it means that you are a viable candidate and the company is interested in hiring you. How you handle the situation will make or break the deal. Unfortunately, some interviewees will panic, but stay calm and show composure when asked to provide an explanation.

Despite poor credit, you can still land a job successfully. If all else fails, provide evidence that you can be a good employee by showing copies of your past job performance reviews, awards and recommendation letters from previous employers.

According to the Bureau of Labor Statistics, 9.7 percent of American employees are out of jobs and they have high mounting bills resulting from this. The long term effect of unemployment has been felt by so many individuals who rely on their credit cards to tide them over until a possible job opening. In some instances, late fees and increasing finance rates make it even worse. With all of these things taking place, no wonder many unemployed have plummeting credit scores; making it more challenging to find a job.

Why Credit Scores Have Become Important?

Employers, these days, are paying attention to a candidate’s credit report. Why? Well, most employees want to discover bad habits, unreliability and patterns before hiring someone who may become a security risk. A credit score that is below 700 presents a warning. If it is below 650, employees become concerned, but anything below 600 is a red flag. While some employers would like to turn a blind eye, company policy does not allow them to be that sensitive to bad credit.

In such a case, what does the job seeker do when he/she has bad credit? Here are some tips below on how to find a job when you have bad credit.

Know Your Rights

The Fair Credit Reporting Act prevents employers from checking your credit or doing a background check without first asking for your permission. The employer has to also tell you the credit bureau used to pull your credit and you should get a copy of your credit report to confirm accuracy.

Know What is On Your Credit Report

Before you apply for a job, pull your own credit so that you don’t run into any surprises while interviewing. Your credit report also provides information needed to clean up your credit. Keep monitoring your credit to keep abreast of any changes or inaccuracies.

Be Honest

So you have walked into the interview wondering how to approach this credit issue. What do you do? When asked, be upfront and let your employer know of your situation. Show that you are doing everything to remedy the situation. An employer would rather know that you are trying than lying about it. Reveal the steps you are taking to handle the situation in a responsible way. Show your prospective employer that your credit situation will not affect your job performance because you have learned from your mistakes. Discuss your value to the company and how you can use the lessons learned to help the company.

Be Calm and Composed

If a prospective employer is pulling your credit report, it means that you are a viable candidate and the company is interested in hiring you. How you handle the situation will make or break the deal. Unfortunately, some interviewees will panic, but stay calm and show composure when asked to provide an explanation.

Despite poor credit, you can still land a job successfully. If all else fails, provide evidence that you can be a good employee by showing copies of your past job performance reviews, awards and recommendation letters from previous employers.

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