We live in a very interesting time, job/work wise.
It is a pandemic!
Shops, stores, restaurants, and pubs closing at record rates!
For the economy, it all seems so doom and gloom.
And the economy is what it is all about, second after lives. After making sure we are all safe.
There is no economy if there is no one to spend money, no one to manufacture for, and no one to sell to.
At my age it is easy, or maybe hard to remember back that far, what it was like getting a job.
As teenager back in my day, the rite of passage for your first job was usually a fast food place. You’d be flipping burgers, cooking fries, or in my instance cooking chicken, and cooking a lot of chicken!
I worked in a fast food establishment that is still around today, and still cooking and serving up a lot of chicken.
But the hiring process was easy.
You walked in, asked to speak to the manager, asked for a job, the manager had you fill out an application, and then hopefully, you received a phone call, on an old rotary landline phone, advising you of your first shift to work.
Fast forward about 10-15 years, and the process became a bit more stringent. This is part as now being older, we were applying for more professional roles.
Not only was there the application process, but also interviews, sometimes multiple interviews, and there also could be some tests you had to take, or maybe even a presentation you had to prepare for.
If we move light years forward to today, some aspects of getting hired for a job have stayed the same, but overall, the process has been modified, brought forward using the technology of today.
Even if you are unemployed and need to seek out benefits with the DWP/Department for Work and Pensions, that now is all streamlined, sort of, and all done online.
There is no meeting with your job counsellor or Work Coach, each week, and given a card with a job.
It is all done online, via the phone, or possibly a web chat.
The same is true of doing job searches.
There are many job boards or web sites showing what jobs and careers are available.
You apply using your CV online, and for some jobs, take an initial assessment test.
If you are moved forward, you then may take more assessments, and have a web chat interview.
As you get more successful, you will be asked for referees or references, and also a background and credit check may be done. All before you are offered a contract of work, and may actually go to the place of employment. That is if that company does not use virtual offices.
I noticed you went back and read the background and credit check a few times. Yes, that is right, a background or police check, which is called a DBS/Disclosure and Barring Service, and searches for any criminal records you may have, and also for some jobs, a credit history search is done.
Many people can understand why a criminal records search may be done, but a credit report being looked at???
One thing to keep in mind here, not all employers as part of the vetting process use credit scores as part of this process. And not all jobs require a credit check as well.
If a prospective employer does use a credit check as a part of their hiring process, as we will discuss, you will be made aware and know, because they need your permission to do so.
An example may be you are applying for a job working in a bank, or in the financial sector, an employer may then do a credit check, and they may also do one if you are going to be handling cash.
Looking at someone’s credit history can be used to show how trustworthy someone may be, how they handle their personal finances, are they in financial difficulties.
It is almost like a character reference.
Some firms, such as law firm, and some financial institutions are required by law to review the credit report of someone they are considering hiring.
Later if you are hired, as an employee if you experience financial issues, such as going bankrupt, you could be dismissed due to bankruptcy, or having bad credit.
Let’s look at the process used by some employers in looking at your credit history, and what the outcomes may be.
The Process of An Employer Looking at Your Credit History
The process of someone looking to hire you for a job, and wanting to review your credit file is very simple. They ask you, they ask you in the form of you agreeing and signing a permission form, granting them access to your credit file.
So you will know if the company requires to see your credit report. In fact, you have to give permission for anyone to review your credit file.
That permission can be given in the form of an application for credit, or a specific form an employer may use.
So What Does My New Employer See on My Credit File?
When an employer views your credit report, they can see your name, and other details about you. They can also view what accounts you have, and how they are or were being paid.
They can see if there are any CCJ’s, or if you have filed for bankruptcy.
They cannot see your actual credit score.
However, if they view defaults, accounts paid late or in arrears, judgments, and other negative public records, they can draw their own conclusions as to how you repay your debts/accounts.
One important thing to keep in mind, these credit searches done by employers, do NOT affect your credit score.
Too many inquiries or footprints can reduce your credit score. Inquiries by employers are “soft” inquires and do not reduce your credit score. No one else can view their inquiry on your credit history but yourself.
Can I Be Denied or Lose Out on a Job Due to Bad Credit?
Sorry to say, the answer here is, yes.
If two candidates are vying for the same job, and the employer reviews both candidates credit history, and one candidate’s credit is good, and the other candidate’s credit bad, the employer may go with and hire the candidate with good credit.
That is why it is important to review your credit file regularly, looking for any errors or omissions, and also to know how your credit looks.
What If I Am Self-employed?
Being self-employed can fall into a couple of different categories:
- Sole Trader
- Limited Company
As a sole trader or partnership, just you or you and your partners are responsible for the company’s finances. When bidding for contracts, or seeking work, the company or person hiring you may or may not want to know your credit history.
This usually would only be an issue for larger contracts, or if handling money were involved.
As an LTD/Limited Company, as a Director you may be asked to guarantee or be a guarantor for some company loans. Having bad credit could affect this.
For any company bidding for some government contracts, and other specific work, financials of the company, or the Director, or the owner of a Sole Trader may be required as a part of the due diligence to award the contract.
This can be due to the volume of work being done, and also the costs involved. The hiring agent does not want a contractor to go bust while still in the process of completing a job.
So not for all jobs or careers, but for some, and that list is growing, having bad credit can impact and affect you getting a job.
(Not an all inclusive list, and not all employers)
- Financial Planners
- Law Enforcement
- Boarder Patrol
- Some Government Jobs
- Casino Jobs
- Security Officer
- Some Jobs in Politics