The Finance Blogger

There is another reason for maintaining your credit record and that is when it could stop you from getting that next job. Can bad credit cost you a job ? Turns out that many employers are now checking for bad credit checks for jobs when they are hiring a new employee. They want to know if this person is a good credit risk and can manage their personal affairs.

Can bad credit cost you a job

There are lots of reasons for wanting someone with a good credit rating. They want employees who are totally focused on the job and not worrying about how they will meet their debts or who have debt collectors coming after them. There are also specific jobs that make sense where people should have a good credit rating.

Bankers with bad credit

The first job that comes to mind is anyone I the financial industry. Do you really want someone working for you and dealing with the public who cannot even manage their own money?

This does not present a very good image for anyone who is customer and happens to know that the person they are dealing with cannot even manage their own finances. There is also the possibility of this person doing something to help themselves. Most bankers will avoid hiring anyone who has bad credit.

Security personnel with bad credit

Another area that is being checked on for bad credit is security personnel. If you are in security, the employers want you to be beyond reproach and not susceptible to any temptations of any kind. If you are willing lo look the other way, what kind of security are you providing. Someone with a bad credit rating or a debt problem is just not worth taking the trouble on.

Credit checks

Credit checks are now being completed on a routine basis. If your credit rating is not up to the level it should be at, it is time to get it there. You may not get the next job simply because someone checked and your rating was below what they considered the standard to be.

So now you have finding a job to add to the list of all the other issues that bad credit brings to the table. High interest rates, high fees and difficulty finding someone to lend you money are typically the issues that a bad credit rating causes.

Discrimination

Is this discrimination, probably, but it is not something anyone is willing to do anything about. It is just one more issue that consumers and job hunters have to face.

Manage your credit rating

Managing your credit rating is one of the most important things that you can do from a financial perspective next to paying all of your bills on time and never missing a due date. A credit rating is made up of more than just paying your bills on time. Your debt ratio is another factor. This is the total amount of your monthly payments including property taxes divided by your gross income.

If your debt ratio is greater than 35%, this could also impact your credit rating. Even if you do not have a lot of debt, but have a lot of credit cards with a zero balance, this can also impact your credit rating since it represents the possibility of being significantly in debt. Only carry or have approved no more than three credit cards and always pay the total balance each month.

for more details about how to deal with bad credit, click here.

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