Your Financial Past Could Hurt Your Future Career (Don’t Let It)

Would you be surprised to hear that all of those shopping trips that you put on your credit card, those car payments you defaulted on or those student loan payments that you forgot to make on time could all follow you around for many years to come?

Unfortunately for those of you who haven’t exactly been the best with money in the past, a poor credit history could have a very real impact on your ability to secure better positions.

Hamper Your Job Prospects

The thing that is often most shocking to younger people who are starting to get serious about their careers is that all of those spending sprees and poor financial decisions they made when they first left home can hamper their chances of climbing the ladder, But, sadly, it really can.

You see, many employers, for many roles, particularly those in finance, will run a credit check right along with the various other checks they conduct on your background. If they don’t like what they find, they may not employ you, or they may not give you quite as much freedom in your role as you would have liked, which could seriously hold you back.

Is There Anything You Can Do About It?

If you mean is there anything you can do to stop employers performing credit checks on you, then probably not, well not unless you are lucky enough to be in one of the eight states that put restrictions on credit checks conducted by employers anyway!

Sure, you could refuse to sign the release form allowing them to check your credit history, but that in itself would raise a red flag, and technically, business owners are only supposed to run checks on employees when there is a real business-related need to do so, but they can always find a way if they really want to!

Fixing Your Credit Score

Of course, you can take the matter into your hands in another way – by paying down your debts and working out how to fix your credit score, so that when you do come to  apply for that career-advancing role – the one that requires you to handle cash or have access to sensitive information (both things that tend to trigger credit checks), your potential new employer won’t find you wanting.

How Do You Fix Your Credit Score?

First of all, familiarize yourself with it by accessing it for free. Check that all of the information contained in your credit report is accurate and report any errors. Then, it basically comes to paying down your debts, making good on bad debts and showing that you can use any credit available to you responsibly by paying on time and not maxing out all of your credit cards, but even then, bad debts may show up on your report for up to seven years after you’ve dealt with them.

Have an Answer Ready

Of course, whether you currently have bad credit, you’re working at fixing it, or you’ve come out the other side, it’s always a good idea to have an answer ready should the question of your poor credit history come up. Think of a short, sincere way of explaining the issue and one making it clear you’re working on it/things have changed.

It’s never nice to be turned down for a job due to your credit history, so be careful where, when and how you spend your money!

 

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