As being unemployed is not bad enough, now a poor credit report keeps you from getting a good job. It seems like a nightmare of a catch-22 situation. You are unemployed and unable to pay your bills. Your credit is ruined. You are evicted. Your car is repossessed.

The day finally arrives that you land the interview for the job that is your second chance at a good life. The pay is more than you have ever earned. The job offers a company car and great benefits. You nail the interview; they make you an offer that you gladly accept. You look ahead and all you can see is a very bright light, at the end of a very long tunnel. Then out of nowhere, the offer is withdrawn because your credit history is substandard. This scenario happens every day and it can happen to you.

It is standard practice for employers to conduct full background checks, which include a reviewing your credit report. The belief is that late payments and irresponsible use of credit are indicators that you have no self control, do not meet deadlines and may make a poor employee.

High security positions, where you are entrusted with cash, company vehicles, or sensitive information, rely even more heavily on credit reports. The school of thought is that someone with an overwhelming amount of overdue debt is more likely to steal or commit some other fraudulent act. Government positions have actual acceptable amounts of overdue credit that you may have and still be offered a position.

While a criminal record and dishonesty on your employment application weighs more heavily than a poor credit history, you need every advantage to get a leg up on the competition. It almost seems unconscionable that after suffering the injustice of being laid off, you are punished for the financial fallout that was no fault of your own.

Many people make the mistake of thinking that since so many others are in the same situation, that the standards will be lowered and employers will turn the other cheek. This could not be farther from the truth.

I have a very good credit history. If you and I interview for the same position, with all other things being equal, I will get the position. I too was laid off not too long ago. My credit history suffered greatly, but I took actions to correct the problem.

Know your rights –

  • The good news is that an employer cannot run a credit check on you without your express written permission. So, if you are in the process of landing a job and the prospective employer has not had you sign a release form, then you do not need to be concerned with your credit report.
  • While poor payment history and accounts in default can be used against you, a bankruptcy cannot. Unfortunately, prior to filling for bankruptcy your credit typically is poor and that is reported on your credit however.
  • You are entitled to a free copy of your credit report if you are not hired for a position due to negative information on the report. This does not seem to be very helpful after the fact however.

It is recommended that you order copies of your credit reports from all three reporting agencies once per year. Once you receive the reports, review them in detail. If you see information that you cannot accurately verify, you are entitled to have it removed. For example, if a credit company reported three, 30 day late payments and you disagree, then they must either verify the actual day the payment was received or remove the negative information. Many times, the credit card companies cannot verify the actual date the payment was received. A more frequent error is reporting a 30-day late payment for one, which was actually 28 days late.

A credit repair company experienced in credit repair can quickly identify opportunities on your credit report that should be disputed. For a reasonable fee, you can have these items removed and piece of mind that they will not keep you in the poor house forever.

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