Can you be denied a job because of bad credit?

Question

Yes, you can get a job with bad credit by being honest about it, preparing a plan, avoiding positions with credit checks, and emphasizing your qualifications. While employers may interpret bad credit as a sign of irresponsibility, your job-specific qualifications are ultimately the biggest determining factor in your ability to secure employment. With that in mind, we’ve compiled some tips for getting a job with bad credit, which you can check out below.... read full answer

How to Get a Job With Bad Credit

Be honest. If you have bad credit, your future employer will likely find out about it through a pre-employment check, so you shouldn’t try to hide the situation. You’re better off explaining your bad credit before they find out. If you can provide a reasonable explanation for your credit predicament, your future employer will be much more willing to overlook your bad credit score.

Explain your plan. In addition to being forthcoming about your credit situation, an employer will also be more likely to accept your application if you can share a clear plan for improving your credit score.

Avoid positions that require credit checks. While many employers will check your credit report as part of the application process, not all will do so. If you want to avoid a credit check, your best bet is to apply for entry-level positions that don’t involve handling money. Jobs with smaller companies are good in this regard, too. But even for these sorts of positions, a credit check is possible, so it’s best to be prepared with an explanation for your poor credit.

Play up your qualifications. A bad credit score can have a negative impact on your employment opportunities, but it doesn’t have to prevent you from getting a job entirely. When you interview with potential employers, emphasize your strengths and qualifications for the position. Ultimately, this is what matters most to them; they just need to know that you can do the job.

Before you start applying for jobs, check out the Credit Analysis page of your WalletHub account. You’ll be able to see customized tips for improving your credit score as well as monitor your score’s progress.

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Answer 1 · 2020-08-14 09:48:46

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WalletHub, Financial Company

@WalletHub • 08/14/20 This answer was first published on 04/23/18 and it was last updated on 08/14/20.For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

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Yes, you can be denied a job because of bad credit in 39 states and the District of Columbia, while 11 states ban the practice in most cases. But all 11 states have exceptions, most of which concern being hired to jobs that involve finance or looking at credit late in the hiring process (such as after an interview). Another 17 states have introduced similar legislation that has yet to pass. If you live somewhere that lets employers discriminate, it can be a vicious cycle, as unemployment can lead to more debt and worse credit. If your credit is bad and you’re looking for a job, your best bet is one of the states that have passed restrictions.

The good news is that companies consider a lot of things in the hiring process, and credit is only one of them. In fact, your credit report won’t even necessarily be pulled during the application process. And if it is, the employer is required by law to get your written permission. So if you never heard from them about credit during the application process, they didn’t look at it. And just so you know, employers are only allowed to look at your credit report, not your credit score.

Here’s when and where you can be denied a job because of bad credit:

39 states and the District of Columbia have no restrictions on denying job applicants based on credit.
California, Connecticut, Hawaii, Illinois, Maryland, Oregon, Vermont, Delaware, Nevada, Colorado and Washington ban employers from discriminating based on credit in most cases.
All 11 states with bans have exceptions. A common one is for jobs at financial institutions or that require handling money. Some of the states also allow credit checks in the late stages of the application process.
Around 60% of employers check some job applicants’ credit, but only 13% do so for all applicants, according to the Society for Human Resource Management.
An employer must get your written permission to check your credit report, and they must tell you before doing so.
You have the right to refuse a credit pull by an employer, but you probably won’t be hired if you do.
Credit checks are only part of the application process. If an employer likes everything else about you, bad credit won’t necessarily rule you out. Just because they can deny you doesn’t mean they will.

You can still get a job with bad credit. But better credit obviously makes things easier. To start rebuilding your credit, we recommend getting a secured card and then consistently paying your monthly bills on time. To track your progress, you can join WalletHub for free to get daily credit reports and scores, along with a personalized credit analysis that will tell you how to improve and how long it will take.

Answer 2 · 2018-05-17 12:53:11

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Sara Stiles, Member

@sara_stiles • 05/17/18 This answer was first published on 05/17/18. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

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Unfortunately, while federal laws prevent discrimination in the workplace regarding race and gender, no such laws exist to prevent being denied a job due to poor credit history. So yes, in most states your credit report can influence the hiring decision. However, even if companies perform credit checks, denying employment based on credit rarely happens.

Answer 3 · 2018-05-04 23:21:45

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Ben Fraley, Member

@ben_fraley • 05/04/18 This answer was first published on 05/04/18. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

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Yes, you can. It's to do with how you convey responsibility.

If you can't handle paying bills and managing your money, that can definitely shut out of of many jobs, so it makes sense. Keep in mind, not every job comes with a credit check.

@pinkcaddylady79

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Or consider a person who escaped a domestic violence living situation and the abuser wrecked the victims life and finances and they have to start all over again

Deborah @boxermama91

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There is more to a credit score then the ability to pay bills. Go through a divorce and lets see how well your credit score does.

Answer 4 · 2021-05-10

@pinkcaddylady79

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Or consider a person who escaped a domestic violence living situation and the abuser wrecked the victims life and finances and they have to start all over again

Answer 5 · 2020-01-24

Deborah @boxermama91

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There is more to a credit score then the ability to pay bills. Go through a divorce and lets see how well your credit score does.

Can you be denied a job because of bad credit?

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