I was self employed for a few years and it didn't work out, and now my credit it shot. Also we are considering filing bankruptcy. Could this be a negative in job hunting?
2007-03-19 07:47:21 · 15 answers · asked by tresbubbas 1 in Business & Finance ➔ Careers & Employment
Yes, they do and it can be a very big negative in the job hunt.
2007-03-19 07:50:32 · answer #1 · answered by pepper 7 · 2⤊ 1⤋
It's not as bad as some people make it out to be.
First the bad news, yes, many companies will pull your credit report, and use it in their decision to offer employment. If you read the fine print on some applications, it will tell you that they can check all references, employment, pull a credit report, and in some cases, run a background check. All of this can be done before you are ever offered employment.
Now the good news. If you are honest with the employer, then can be forgiving. I had the same situation, some years back. (Involved in a company, and due to a third partner embezzling money, had to declare bankruptcy.) As a result, when I was looking for employment, I made it a point to explain the situation to the interviewer.
Most business's are forgiving, and have a respect for the individual that attempts to go into business for themselves. I often look for this trait when I am recruiting now. It shows tenacity, intelligence, (usually), and determination.
Good Luck!!
2007-03-19 08:15:35 · answer #2 · answered by pnk517 4 · 0⤊ 2⤋
Depends on the application you have filled out. If you read the fine print very carefully there may be a disclosure regarding credit checks. However--- if they do you would most likely see all the references to the FCRA (Fair Credit Reporting Act) that discuss in great detail what has to happen should you be declined based on your credit. If you are declined based on your credit you would receive a letter to that effect with information on how you can obtain the same information that the employer did.
Can your bankruptcy hurt? It depends on your industry. It most likely will hurt in any sort of banking/financial, etc because it may be more difficult to get you licensesed/bonded, etc.
2007-03-19 08:46:42 · answer #3 · answered by sharpie 2 · 0⤊ 1⤋
A bad credit report is definitely a negative in the job market. Read the application form carefully, you may be authorizing a background, credit, and other checks just by applying.
Don't forget, to pull a credit report reflects a 'hit' on your credit report, so if you apply to several companies and they all get a report, your score goes down.
2007-03-19 07:56:29 · answer #4 · answered by credo quia est absurdum 7 · 0⤊ 1⤋
Yes, prospective employers have the right to pull credit reports as well as any other online information they deem necessary. They can and will pull police records, felony and court records. If you get a chance, explain the poor credit as a result of being self-employed.
2007-03-19 07:57:03 · answer #5 · answered by Anonymous · 1⤊ 1⤋
A lot of employers are doing this and yes it's legal. When you apply for the job you give your consent for your credit to be pulled. The reasons that employers do this are many, they might be looking to fill a position that requires a company credit card, you to be bonded or handle cash. By looking at your credit they get a snapshot of how responsible or not you are. Insurance companies do the same thing when you apply for insurance for a vehicle.
2007-03-19 08:00:51 · answer #6 · answered by ? 7 · 1⤊ 1⤋
They can only run a credit OR background check with your written approval. Without it, they cannot.
Most employers do not run credit reports/checks. If you are looking into sales or a similar field where there is a manner of cash/money handling, they may request it.
You have the right to say no, but will not be hired. It's a catch-22; if you let them do it and your report isn't good, they won't hire you either.
2007-03-19 08:05:43 · answer #7 · answered by Enchanted 7 · 0⤊ 2⤋
I think that is so wrong. What does your credit report have to do with your job performance. I messed up my credit when I was younger, max out cards and paying late and all that. I went for a job at Independence Bank in downtown Bklyn and they ran my credit and chose not to hire me because of it. The reason I found out was b/c a friend of mine worked there and thats how I got the interview in the 1st place. So it all depends on the company but it really can hurt you. Good luck to ya.
2007-03-19 07:55:05 · answer #8 · answered by Crash 4 · 0⤊ 2⤋
They can, but:
-they must have your signed consent form before conducting a background check of any sort on you
-unless you are applying for a job that involves fiduciary responsibility (controller, CFO, etc.) it's unlikely that they will have a need to check your credit report
-background checks costs $$ and the more items the company checks the more it costs. Companies that perform background checks generally confine them to education and criminal backgrounds as well as verification of previous employment
2007-03-19 09:15:38 · answer #9 · answered by Mel 6 · 0⤊ 1⤋
They have the right to pull up any information about you, as soon as you apply for the position. It is the company's right to protect themselves, and credit reflects character in some cases.
2007-03-19 07:52:04 · answer #10 · answered by Anonymous · 1⤊ 1⤋