Employment Troubles – How we may be able to help.When it comes to debt management, you may want to think twice about overspending or missing a payment. It could have an impact on your employment. The simple fact is, bad credit can cost you a job. It’s important to know how credit impacts employment as well as what steps you can take to reduce this risk. If you are looking for a new job, hoping for a promotion, or just trying to remain in the same position, your credit score can get you in trouble if it is less than ideal. Employers are using credit checks as a key component of their hiring routine, in fact. They do so for various reasons, but studies don’t indicate a direct link between a bad credit score and poor job performance. So, why is this happening?
3 Reasons Why Employers Care About Your CreditIt is important to consider your financial health before and during your employment. While you may not be looking to finance a purchase through your employer, he or she is still using your credit information to make hiring, firing, and even lay-off decisions. This happens for these reasons:
- A poor credit score can mean a person is less dependable in the eyes of the employer.
- Someone who mismanages money in their personal life may be more likely to embezzle or make bad decisions managing company funds (a key reason financial managers and those in most management positions will have credit checks before being hired.)
- In some cases, hiring someone with a bad credit history could lead to a lawsuit down the road if the employee does something wrong. Liability risks are a big factor for many employers even as far-reaching as this.