When I was younger and learning about handling my own finances, I didn’t do a great job of it. My parents taught me what I needed to know and set a good example for me. I still needed to figure it out for myself and make mistakes along the way. Those mistakes resulted in a poor credit report.
Poor credit affected more than just my buying power. I had a very difficult time getting car insurance for one. Thankfully, my poor credit report did not stop my working at a large California bank for nearly four years. However, it could have.
It is no secret that employers might pull your credit file and use the contents therein to help in the decision to hire prospective employees. If an employee is going to be responsible for sensitive information or money, the employer wants to know if the prospect has a history of behaving responsibly. This isn’t a fair assessment of an employee, however, because many people are able to handle themselves more than respectably on the job in areas they fail on at home. Poor payment history could also be a reflection of unemployment. It would be awful to not be considered for a job because your finances are suffering due to your lack of one.
If you’re planning to apply for a job, check your credit report. You can get a free copy of each report yearly from annualcreditreport.com. Check the reports for inaccuracies and correct them right away. It’s your job to make sure the information presented is correct.
If you find that the information in your credit report is unflattering and yet still accurate, tell potential employers. There is no shame in poor credit. If you’re up front about it then you can discuss it frankly instead of the employer drawing conclusions.