FinanceSpectrum.com Advises Job Seekers How to Address Employer Credit Checks

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Following a June 14 Wall Street Journal article titled “Can a Bad Credit Report Hurt Your Job Search?” FinanceSpectrum.com financial advice website comments on the current legality in most states for employers to run credit checks on potential new-hires, and advised job searchers how to handle having their credit run as they apply for work

We urge consumers, especially job seekers, to get your hands on your credit report and start trying to reverse any damage done before an employer judges you based on it.

FinanceSpectrum.com financial advice website today released their observations regarding employers running credit report checks on potential job candidates, offering tips to the job seekers about how to handle and address such scenarios. FinanceSpectrum.com advised readers to do everything in their power to run their own credit checks and smooth out errors and delinquencies beforehand, but also offered pointers if interviewees know that their credit is less than sterling during the interview process.

A Wall Street Journal article by Jonnelle Marte, published June 14th 2013, reported that according to a 2012 Society for Human Resource Management, roughly 47% of U.S. employers run credit checks on potential new hires. And a survey by New York think-tank Demos found that one out of every seven job searchers has not gotten at least one job because of the results of a credit check.

FinanceSpectrum.com stated that they do not believe that checking a job candidate’s credit report is an accurate way of determining the fit of an interviewee for a job position, however acknowledges that since it is legal for employers to do, job seekers must prepare and plan accordingly.

FinanceSpectrum.com is quoted as saying, “In the world of business and finance there are times when you are checked out before the decision is made, and times the decision is made blindly. With no exam insurance the implication in the name is that there is no exam done which may or may not be true. In other situations, as is often the case in life insurance and medical insurance, there is a careful scrutiny before issuing a policy. When employers hire, this can be a huge decision, so it is not a surprise that a check is done before "issuing" the job. The first and foremost thing should be for job searchers to check their credit report annually. The Fair Credit Reporting Act legally requires each of the three credit bureaus to release a consumer’s credit report to them when requested once per year. To me, it’s shocking how few people actually take the credit bureaus up on this offer. By not checking your credit, you’ll never know what errors could be on it, bogging down your not just your credit report but also your score, or worse, if an identity thief has opened an account in your name. We urge consumers, especially job seekers, to get your hands on your credit report and start trying to reverse any damage done before an employer judges you based on it.”

The above-mentioned Wall Street Journal article stated that employers are more prone to check the credit of those applicants who are vying for high ranking or financial positions, such as senior executive slots or positions with access to sensitive information. Marte reported that for potential employers, red flags on credit reports can be anything from missed payments to foreclosures to liens.

FinanceSpectrum.com understands that not every bad mark can be cleared from one’s credit report, and advises job candidates to be fairly open about their delinquencies while proving that they have turned over a new leaf. FinanceSpectrum.com is quoted as saying, “If you can’t do any more to perfect your credit report, it’s best to be honest about it. It’s okay to admit to an employer that when you were laid off and between work, you fell a bit behind on bills as long as you can prove to them that you’ve changed your course and are taking steps to correct all of your financial blunders. What’s most important is proving that you are a responsible and trustworthy individual, and that despite hard economic times you are working on rebuilding your credit.”

About FinanceSpectrum.com:
FinanceSpectrum.com is an online finance advice magazine that offers tips, facts and advice for the every-day middle-aged consumer. FinanceSpectrum.com commonly features articles involving budgeting, credit, paying down loans and debt, and investing.

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