Does Good Credit Help Get You a Job?

Potential employers consider your education, work history, recommendations and interviews. They also often check your credit before making a job offer. Having a good credit score can help you land a job, and having a bad score might cause an employer to offer the position to someone else.

Credit's Effect on Jobs

Your credit history indicates a few things to your employer. First, having an overall good credit score shows that you are responsible with your finances, you are prompt in how you handle bills and you consider the feasibility of purchases before making them. These characteristics can all translate to better job performance. Second, being able to keep up with your bills makes you less likely to be tempted to steal from work or otherwise defraud your employer. Lastly, having good credit suggests that you are on top of your finances and do not have too much financial stress. Being worried about money could lead you to be distracted at work and not as able to perform your job duties.

Checking Your Credit

Checking your credit report before you apply for a job is a good idea. That way, you know what your employer will be seeing in the credit check. If you have not yet gotten your credit report this year, you can get it for free through AnnualCreditReport.com. The federal government also requires the credit bureaus to give you a free copy of your credit report if you are currently unemployed and are planning to look for work in the next 60 days. When you get your credit report, check it for accuracy. If you find any incorrect information, file a dispute with the credit bureau that provided the report so you can correct it before a potential employer sees it.

Improving Your Credit

In addition to fixing errors on your credit report, you can change the way you manage your finances to improve your credit score. One of the best ways to boost your credit is to pay down your credit card balances. Having high balances compared with your credit limits seriously lowers your credit score. Another long-term practice that will improve your credit is to pay your bills on time every month. Even one missed payment will hurt your score, and payments that are more than 30 days late have an even greater effect.

Credit Check Permission

An employer must ask your permission before running a credit check. The employer has to give you a written document that clearly states that the employer plans to check your background, including your credit history. You must sign this document before the employer checks your credit. Employers will usually need your Social Security number to locate your credit report. You should only give your number to an employer who you have met and who you trust is legitimate.