As the recession continues, the unemployment rate continues to climb among people from all economic backgrounds, as do foreclosures and bankruptcies. To add insult to injury, more and more employers are performing credit checks on potential employees as a standard part of the selection process.
The good news is that you can still find a good paying job even if you have lousy credit. Paradoxically, “admitting to past credit errors can even offer you a chance to soar above other candidates in the eyes of your future boss.”
Here are some ways to improve your chances of finding your next job despite past credit problems.
1.More and more employers are performing credit checks on job seekers.
Credit reports are a critical part of the hiring process in industries where employees – from bank tellers and armored truck drivers to accountants and finance managers – routinely handle large sums of money during their day. In industries where this is not the case, an employer may still perform a credit check to help determine what type of employee will be a candidate, since a good credit history can give insight into a person’s character and level of maturity. “A person who pays their bills late, whose accounts have been turned over to collection agencies or who have declared bankruptcy is rightly or wrongly considered a person with less integrity,” says Susan Wilson Solovic, author of “Reinvent Your” Career: Attain the Success You Want and Deserve.
2.Be the first to lift it.
A credit check usually takes place after the first interview – an employer wouldn’t invest the time and money unless you’ve taken the first hurdle – although sometimes the first time you hear about it might be when you are offered the position. Either way, get busy. “It’s best to talk to an interviewer about your credit history as soon as possible,” says Dianne Gubin of Tech Exec Partners, a recruiting firm in Calabasas, California. interview process. Your disclosure should go far beyond your credit history. “Besides credit issues, I also advise applicants to speak to an interviewer about anything that might arise during a background check,” she adds. Kimberly Schneiderman, a New York-based job search consultant, agrees. “Employers will see that you have the integrity to take on a potentially embarrassing situation, and that will also underscore your frankness and honesty, which are two attributes that are highly valued in most jobs,” she says.
3. Demonstrate a strategy.
Once you’ve revealed the true state of your credit history to a potential employer, it’s time to show off the steps you’re actively taking to improve your credit, from paying down debt to refinancing your mortgage. Solovic suggests that you go one step further and bring your own copy of the credit report for the interview. “It clearly shows that you are not trying to hide anything,” she says.
4. Have a explanation ready.
If your credit has been damaged for personal reasons and not for irresponsible behavior, this can help you get a pass. For example, if you or a family member were out of work for an extended period, or if your unemployment benefits were depleted, a potential employer may ignore a bad credit report. Likewise, if a medical situation is causing your credit to deteriorate, whether it’s you or a family member, an employer can empathize.
5. Preselect the company and the position.
If you don’t want your credit history to determine your potential as an employee, always avoid employers who rely on them. It stands to reason that state, federal and local governments will automatically prepare a credit report on a prospective employee, especially if the position requires security clearance; any company that contracts to do business with the government will likely do the same. However, some companies that do credit reports on potential hires only do so for mid-level or higher-level jobs. On the other hand, even the lowest level position in some companies may require a credit check. “If a business is regulated in any way, such as a nonprofit, it will be more likely to file a credit report,” says David Couper, a career coach in Los Angeles.
6. Target small businesses.
Small businesses with only a few employees and businesses with high turnover are less likely to perform credit checks on future hires. They don’t have the time or the resources.
7. Rely on your personal relationships.
Limit your job search to networking with people who know you – and vice versa. If you already have a relationship with a potential employer, they may be less likely to see a good credit history as a condition of employment. “Receiving a recommendation from a friend or colleague of the employer will help you create a positive impression,” says Couper.
8. Emphasize why you are the ideal candidate for the job.
“If an employer thinks you are the best fit for the job, they may be more tolerant of your credit problems,” says Couper. “If you can prove what you can do for the business and are well above the average candidate, you may be given some leeway. “
9. Apply for the position anyway.
While some companies draw a line in the sand and automatically dismiss all potential employees with low credit, others take a more laissez-faire approach, which is nearly impossible to research ahead of time. When Connie Thanasoulis-Cerrachio, career coach and former personnel manager at Merrill Lynch Investment Managers, discovered that a promising candidate was having credit problems, she did not automatically dissuade him from continuing to interview for the job. . “He explained how he got into his mess,” she said. “If his explanation wasn’t good, we probably wouldn’t have hired him.” She believes that sometimes bad things happen to good people. “In this case,” she says, “I like to give the candidate the benefit of the doubt and continue anyway, because it depends on the work, the explanation and the overall honesty of the person.
See linked: Help with bad credit, More and more employers are performing credit checks on job seekers, Better credit can mean better job prospects, Credit checks for job seekers are becoming more common , Reduce unemployment benefit card fees