Low Credit Score = No Job? Wait… What?!

Low Credit Score = No Job? Wait… What?!

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Let’s back up for a moment…

Let’s go over the list of what it takes to land a job…

  1. Polished, fine tuned resume? CHECK! (Check out what Zanes Law is looking for in a resume HERE!)
  2. Phone call for an interview? DONE!
  3. Charming, in-flow interview? NAILED IT!

So….What seems to be the problem?

According to a recent Fast Company and Levo League article having a low credit score can boot you out of the position you were about to land with flying colors….

So here’s the ultimate question still lingers:

Can HR recruiters actually see a credit score—and can they reject an application based on the applicant’s financial situation?

Okay before anyone’s eye starts twitching… Fast Company and Levo did their digging and here’s what they found

“”Not only can they can see if you have had any bankruptcies in the past, but they can also see any outstanding balances on credit cards and student loans. Finally, they can see if any of these loans are past due.” And, yes, this is all legal!”” says Herbert Moore, co-founder and co-CEO of WiseBanyan.com.

Okay what about student loans?

The article makes it clear not to panic … but we hear some of you hyperventilating…

Breathe… One … Two …. Three…

The article states that “Though it sounds paradoxical, student loan debt can positively impact your credit score…Further, on-time payment of student loan debt can show good payment history and creditworthiness.”

The “Bad” News?

The article stated that a study by the Society for Human Resource Management (SHRM) showed that 60% of employers pull current and potential employees’ credit reports…

And companies do it to get a better handle on how financially stable the applicant really is…

So you smell clean and look fresh but are you going to get sticky fingers on the petty cash in the back drawer to pay for your iPhone bill that your behind in?

Major judgement much? Maybe…

Legally, the employer has to ask your permission and get written consent to check your credit report…

Plus, if you are turned down for the job based on what is in your credit report, you must be provided with a copy of that report and given a reason…

Will the employer actually be that honest?

Eh… Maybe, maybe not. Make sure to use your easy access to your credit score and keep up to date with it at least twice a year.

As the article stated: Knowledge is power… for both sides!

*Read the original Fast Company Article here.

 

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