Bad Credit Medics

Whether bad credit really affects your job prospects, or if you are already in employment, how much of job threat you may face is a debatable issue. For once, if you look at it pragmatically, it depends on the relation you share with your employer and your performance most of the times, as there are no hard and fast rules to tell your boss as to what he should be doing if you have a bad credit score.

It All Depends On the Circumstantial Judgment by Your Employer
It is true that the law doesn’t permit to deny jobs to anyone solely on the basis of bad credit or bankruptcy. However, credit problems like collection actions make a dent on the employers’ impression for you.

The Logic behind Credit Checking By Employers
When hiring for important and sensitive positions that involve higher financial responsibilities or positions of strategic importance in the defense department, employers don’t want to leave this aspect to chances. Your bankruptcy or sustained bad credit can project you as gullible person for bribery.

But this is still not established whether credit checking should indicate better than your background checking for criminal activities and identities etc. However, William Greenblatt of Sterling Testing Systems Inc., a NY based background checking firm says “Of the 10,000 adverse action letters we send out monthly, very few of them are credit related,” said Greenblatt. “It counts for less than 5%.”

But the employers wanting to verifying credit history has gone up by 16% to 35% from the 19% in 1996. Although credit is not been proven to be a good indicator of one’s character, it is more often then not resorted to for checking your social security number and employment history.

There is also another angle to the theory; that performance on your job is in one way or the other, correlated to your personal credit history. This doesn’t apply to all the circumstances and job positions.

No matter what, employers can’t fire employees if they discover bankruptcy even later. On your part, it is good service unto yourself, if you maintained a good credit score all along, especially if you are applying for bank jobs, diamond and jewelry shops etc.

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