Are you heading for the interview? Update your credit report. Employers conduct pre-employment checks before hiring. The check may differ from that of a direct lender. Leading employers consider a few credit report aspects critical for hiring. It could be payment history, rental payments and more. Although, you can refuse one if you don’t want to.
However, this decision may impact your career prospects. Every prestigious organisation conducts one. Instead of denying, knowing aspects may help you prepare the credit profile. Read ahead to know aspects employers check and how it may affect your chances of grabbing the job.
What do pre-employment checks mean?
Pre-employment credit checks are screenings that employers conduct before offering the job. They conduct a soft credit check that does not affect the credit score. It helps them assess the candidate’s suitability for a role which requires sharing sensitive details. It could be the company’s data, accounts or assets. Moreover, it helps the employers know the candidate’s professional conduct. A responsible credit report reveals financial discipline. He may get the job.
What can potential employers see on a credit report?
A soft background check reveals a few credit aspects. The employers want to confirm who you say you are. Thus, they may check a few things on your report:
a) CCJ or County Court Judgement
A CCJ is a legal court order in which a creditor issues the borrower on defaulting. Under this, you may receive a court order to be present at the hearing. You must respond to the letter quickly. Otherwise, it may lead to severe circumstances.
A CCJ lasts for 7 years on the profile. Thus, employers may see this status on credit reports. It stays even if you pay the dues. However, then it would not cast a negative impression.
Identify the best way to settle the creditor’s payment. Check whether you can pay it before 7 years. You just need to budget for that. If you encounter any cash challenges, don’t worry.
Get loans for bad credit from a direct lender nearby. Individuals with pending debts or CCJs may need one. He may help you fix the need without affecting the other goal. Try to settle the CCJ as quickly as you can. Moreover, maintaining payments well prevents your credit score.
- Bankruptcies
An individual’s inability to settle dues by a given time leads to asset seizure. He may declare himself bankrupt if he cannot pay the dues. This situation cancels out the loan and frees him from the payment. However, the solicitor may dispose of the assets to the creditors. It is the one way to get their dues back.
This also affects the job employment. No company wants to hire a bankrupt person. Moreover, recently bankrupt people struggle the most. It reveals the person’s inability to ensure sound financial management. It turns out to be the biggest turnoff. It reveals the risk of handing over the company accounts.
- Electoral roll
An electoral roll reveals the person’s eligibility to seek a job in the country. It confirms his identity as a citizen of the country. Every individual above 18 must update it. Check the name, email address, contact number and residential address. Ensure the latest details to get a job letter. Employers consider the person’s stability. Individuals living in the same place for years get preference.
Do you need a specific credit score to get a job?
There is no minimum credit score to get a job. Employers cannot check your credit score. They can only check the credits and other aspects like- employment history, pending debts, etc. Thus, there isn’t a specific credit score that can get you a job. However, the higher the credit score, the better opportunities you get.
Is the employee check relevant for every job role?
No, every job role does not require a credit check. Employers seeking individuals for financial roles conduct one. You may face credit screening for job profiles like- accountant, financial manager, or banking. You may not face one for the creative profiles like digital marketing.
Can you fail a credit check for a job?
Yes, you may fail the pre-employment credit assessment if your current financials may affect your job role. You would not be able to comply with the company’s expectations then. Moreover, you will have unmanaged finances if you fail to get a credit check for the job. This reveals casual behaviour towards debt clearance. Employers may not consider you employable for the post.
Could bad credit be the reason for job rejection?
No, bad credit does not imply instant application rejection. Employers in the UK consider credit history, particularly for roles involving financial responsibilities. However, they must be fair and unbiased regarding the decision. Reputed employers conduct detailed analyses before hiring. They don’t go by the report only.
Instead, verify the contents before deciding. Individuals with bad credit history may suffer rejection. This is due to the low potential of financial management. However, credit score is not the only criterion. The job approval also depends on the candidate’s skills, experience, and expertise.
How do you prepare your credit profile before a job application?
It is clear from the above that you cannot predict employer checks. Some may conduct one, while some may skip. However, you cannot take a chance. Here are some ways to prepare your credit profile for the job application:
1) Analyse your credit report and pay debts
You can request a free credit report from Experian. Identify the issues like pending payments and CCJs. Discuss or negotiate a solution with creditors. Analyse the amount and pattern mode. Check whether you can free up some cash from the debts only.
Options like debt consolidation may help you. You may get one despite falling finances. Check quotes for a debt consolidation loan for bad credit from a direct lender now. Choose the costliest debts to consolidate. It may free up some amount. You can use it to settle the dues. Instead of dealing with multiple lenders, you pay to one. Managing credit that way automatically boosts the credit rating.
- Develop healthy financial habits
It is critical to be financially conscious while making any decision. Avoid unnecessary expenses. Instead, save towards your monthly utility payments. Skipping any payment affects your job approval chances. Thus, set up direct debits that might help you with consistent payments.
Avoid applying for credit cards if you don’t use them often. Developing such habits and sticking by for at least 6 months may get the best job offers. Strengthen your finances enough to convince the employer.
3) Limit Hard enquiries on a credit report
Unlike soft credit checks, the hard one is visible on your report. It affects the credit score temporarily. However, the effect lasts long for bad credit profiles. Thus, unnecessary loan or credit card applications should be limited. Avoid using overdrafts for minimal cash. Instead, keep sufficient cash for your needs.
- Maintain mortgage payments wisely
Yes, mortgage payments may also be one of the critical aspects. Buying a home is meeting a big lifestyle goal. Thus, pending payments may turn off the employer. Ensure consistency without skipping any. If struggling, discuss the situation with the provider. Pay at least the bare minimum, if not full.
For example, if you owe £ 15,000/month on the mortgage, try to pay at least £ 10,000. It reveals your effort to be consistent with payments. Missing the payment only leads to additional troubles.
5) Update your electoral roll cover
As mentioned above, the electoral roll reveals the risks that you share with the employer. Individuals with updated cover receive preference. It showcases the eligible employee’s authenticity as a country’s citizen. Eliminate the old details. Replace them with the updated one. It will help you prepare your profile for the job interview.
Bottom line
Thus, having a good credit history may prove helpful for employment. Analyse the aspects that employers check before providing the offer letter. It will help you eliminate the red signs. For example- check your electoral roll status. Update it if it needs one. Similarly, ensure positive and responsible financial take. Avoid engaging in any financial arrangements that may affect the job chances.
Anna Johnson has more than 11 years of experience in direct lending industry of the UK. She is the Senior Content Editor at 24cashflow where she is leading a large team of loan experts. During her career, she has helped the loan aspirants to use the particular loans in the best way and improve their financial lives and status.
Anna Johnson is known for her in-depth research of the UK loan marketplace, as she has worked with many major lending firms in her career. During her educational phase, she has done a research on ‘Finance Fundamentals for Growing Business’.
