Credit Score vs. New Job

Wednesday, November 3, 2010

We have received a lot of inquiries lately about credits scores and potential employers. What you need to do if your credit score is low.

Several years ago employers began checking credit scores of potential job candidates.  The theory is a good credit score was an indication of the persons reliability and depednancy. If you cannot manage you own finances, you may not be able to manage your job at the levels they require.  There are discussions in some states about this practice and if it is fair to the consumer.  With the current state of the economy and the millions of consumers unemployeed, this practice is now considered by many to be unfair.  Consumers who once had a credit score of 700 +  prior to getting laid off now watch their scores tumble. They try to maintain paying their bills, but have to make tough decisions on what bills to pay vs. having food on the table.  Many employers will understand the economics of a declining credit score. If  you know this is part of the hiring process, you should take the time to explain your situation to the hiring manager.  You do not need to go into specific details, but letting them know you previously had a much higher score prior to your lay off will go a long way.