Many employers decide to hire or fire employees based on their credit ratings. People who have bad credit rating usually are not hired. There are many risks involved in hiring an employee with a bad credit rating, because poor credit rating shows financial insecurity, and hence employers due to high security risk do not hire such employees.
There is a law, which prohibits employers to deny jobs to bankrupt people. They reject promotions of employees for bankruptcy reasons. Therefore, employers refuse to give jobs to such defaulters. Most organizations conduct credit check regularly. Government workers and new employees are checked for bad credit rating frequently.
Reasons For Increased Credit Check:
Credit checks are increasing and some employers are interested in certain other kinds of credit checks such as background verification and criminal histories. Some of the employers are not worried about bad credit rating, if they find the candidate suitable enough for the job.
Credit has not turned out to be the best factor to judge accountability of employees in the workplace. People who bluff in their job applications and hide their identity, and even faked about their education and experience were more likely to lose jobs.
Credit report is the best way to verify employees. It is a way to double check the authenticity of the job applicant. Many companies even crosscheck their social security numbers. Lenders check for bad credit rating before giving a loan or a credit card to a person.
People involved in jobs such as account clearance and security clearances are denied for promotion, if they are caught with bad credit rating. Some recruiters give employees a chance to clear their credit ratings within a speculated period for promotion purposes.
Individuals, who deal with cash, jewels and valuables are often checked for credit rating for security purposes. Jewelry manufacturers often do credit checks of their employees, who deal with diamonds and gems.
Things An Employee Need To Know About Credit Check:
Employee permission is necessary for credit check. Employers have to take a written permission from their employees stating consent for the credit checks. An employee denying permission on the same stands to lose his/her job. It is a law that an employer has a right to conduct a credit check, when required.
The law also states that bankruptcy cannot be stated simply the reason for denial of jobs. If an employer refuses you a job citing bankruptcy reasons, you have full authority to consult an attorney.
Jobs denied due to bad credit rating makes it mandatory for the employer to inform the employee the reason as bad credit rating. Employer also has to provide the employee with information such as a copy of the credit report, the resource that provided the credit report and a copy of the Federal Rights Act, which explains the same.
Hence, employees need to check their credit ratings carefully, before appearing for an interview. Unfortunately, bad credit rating leads to a poor judgment by the employers many a times.
![[Valid RSS feed]](/images/icon_Rss.png "XML Feed For RSS"){kind=icon}
Category Rss Feed
Print This Article
Add To Favorites
