How Does Your Credit Score Affect Whether You Get a Job?

Your credit score not only is a determining factor in being approved for a home , your dream car, or the cost of your auto insurance, it also can affect whether or not you are hired for a job. Employers use a number of methods to determine the right applicant, and a credit score can be very revealing to the type of person they are hiring.

A Growing Trend

According to "The New York Times," more businesses are adding credit scores to their hiring criteria. Because of the Enron scandal, background checks that include credit scoring have become more popular amongst employers who want to make sure they're hiring honest individuals. According to Prudential Appleseed Realty, a good credit score is anything above 680. Apparently this number and above assumes that these consumers are more apt to pay their bills than those with a lower score.

Type of Industry

If you are seeking employment in any finance or securities industry your credit score often will be factored in being hired for the position. Considering you are dealing with money in these industries, proper money management is essential. Therefore, having a high credit score informs the employer that you have good budgeting and money management skills. To have a high credit score, your bills must be paid on time or ahead of time, and you have not incurred more debt than you can handle. This kind of employee is necessary in a position that requires suggesting what your clients should do with their money. The attitude of a person with a higher credit score shows they are prudent, and consistent. These are skills that are required in the banking, finance, and securities industry.

Responsibility

Employers reviewing your credit report are looking for liens, bills that all are 120 days past due and lawsuits, to name a few. Employers looking for these criteria are assuming that those who pay their bills on time and have clean records with no lawsuits or liens are more responsible individuals. If a job in which you are applying requires a lot of responsibility, they would choose someone they feel is more responsible with their finances in the past with other creditors as opposed to someone that is not. Their consensus is how you handle your money is directly proportional to your character.