Can You Get a Job With Bad Credit [Guide for 2024]

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Sometimes it feels like we’re living in a predetermined world, where previous conditions cause courses of action. One example is not being able to find a job because of low credit scores, and low credit scores are the result of not paying off debts because you lack employment. 

While it’s hard, don’t fall prey to this stream of thought. We’re here to show you the way out by informing you about why employers have to check credit, as well as a list of jobs where this is relevant.

Can you get a job with bad credit? Stick around and find out.

Why Employers Check Your Credit

If you think being on the job market is challenging and stressful, try putting yourself in an employers’ shoes. Choosing between a bunch of top-notch job applications, doing a tedious background check, and constantly worrying that you’ve missed the right person isn’t easy. Thus, consider why they might be considering a credit report for the hiring process:

To Determine Your Financial Responsibility

It is crucial for high-end merchandise businesses, or any financial position and managerial position, to show self-discipline with spending money. Since somebody’s financial situation will be in your hands, this means that if you can’t manage your own, you can (and will) easily harm other’s financial stability.

To Figure Out if You’re Responsible Enough

Employers want to see if you’re responsible because you’ll be granted personal confidential information.

Both bad credit and an employment background check can make you look bad when it comes to jobs where trustworthiness is indispensable. In other words, appointments that would allow you access to confidential information seem like a bad idea to your employer because you may be susceptible to bribery due to poor financial standing. With that in mind, learn about credit builder loans, they can help you improve your score.

To Assess Whether They Are Looking at Potential Application Fraud

Some people report misleading or erroneous information on their resumes to make them stand out in the crowd. Hence, employers must have the means to thoroughly examine all details so that their business doesn’t get jeopardized.

To Evaluate Your Decision-Making Skills

An important aspect of employment, which dictates the tempo of promotions, is whether you have what it takes to make rational decisions. Since low credit scores have detrimental effects on other aspects of your life, this may suggest suboptimal decision-making skills, and you may be denied employment due to bad credit.

To See What Kind of Person You Are

Although procrastination can fuel creativity, this mental habit isn’t desirable when it comes to highly responsible jobs. Forgetting to pay bills and piling financial problems on your credit report may be indicative of a profile that cannot fulfill duties on time.

DID YOU KNOW? About 30% of employers check your credit history, whereas 72% simply stick to background checks. That being said, take your credit scores seriously and read up on how to fix your credit. We recommend consulting experts for these purposes, so eyeball some of the best credit repair companies in the U.S as well.

Pre-Employment Credit Check: What Are Your Rights?

Credit screening isn’t as straightforward as many think: to start, employers can’t just stick their nose in your credit history whenever they want. On the contrary, under federal law with the Fair Credit Reporting Act (FCRA), you have guaranteed rights. Specifically, this means that:

Employers Need Your Written Permission

The legal bounds mean that each employer must have signed and authorized permission for an applicant’s credit screening. It is also strictly forbidden to covertly request any credit-related information within other documents or application forms. You can always refuse to consent to credit checking, although the employer also has the right to stop the hiring process.

Employers Must Come Clean if You Are Denied a Job Due to Credit

Suppose your credit history was the reason you weren’t selected for the position. In that case, the employer needs to notify you of the specific negative items on your credit report that have deprived you of employment. Additionally, you must receive the name and contact information of the credit bureau that the employer contacted.

You Can File a Dispute

Once you get a formal notice of rejection as well as info from a particular credit bureau, you can obtain a free copy of your report and start refuting the negative items. Doing this appeals to employers to give you a chance after being denied employment due to bad credit.

DID YOU KNOW? According to a recent study by Demos, people of color are more likely to report poor credit, meaning it is more likely that employers will reject them for a job. In this way, people of color will be subjugated to continuous employment discrimination unless legislature pertaining to credit checks change.

Key Takeaways

Can you get a job with bad credit? In a nutshell, yes. However, this depends upon the position you’re applying for. For example, a career in accountancy, finance, banking, law enforcement, or the military may be out of reach if your FICO score is low.
11 states and three cities have passed local laws that regulate the background check of a potential employee. Nonetheless, they allow for exceptions if the job includes dealing with personal confidential information or demands money management abilities.
Thanks to the FCRA, employers must ask for your written permission before adhering to the credit screening process. You’re also entitled to filing a dispute should you end up rejected due to your credit history.
When it comes to improving your chances of getting a job with bad credit, you should focus on credit repair before sending in a job application. During your interview with the employer, aim for demonstrating maturity and sincerity.

States That Ban Credit Checks for Employment

The land of the free and the home of the brave does rule on credit checks for employment by state. Therefore, citizens of California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maryland, Nevada, Oregon, Vermont, Washington, and the cities of Chicago, Philadelphia, and New York have special rights.

Employers in these states are not allowed to make hiring decisions based solely on details stemming from your credit report. In New York and Chicago, employers have no access to such info at all. Nonetheless, most states permit exceptions for the financial service industry and law enforcement.

DID YOU KNOW? The House of Representatives passed the Comprehensive CREDIT Act of 2020, which includes an amendment related to restricting credit checks for employment purposes regardless of the industry. The bill is currently waiting on a vote from the Senate.

What Jobs Check Your Credit Score?

Analyzing your credit history may make sense for some jobs, so bear in mind that even local laws that heavily restrict this practice do allow for a background check for some industry branches. If you aspire to do some of the jobs below, you must boost your digits or you’ll get your dreams crushed.

  • Finances (public accountants, financial planners, other managerial and senior officer positions in the industry)
  • High-end merchandise businesses (jewelry stores, fashion stores, and other luxury and branded merchandise)
  • Government agency positions (lawyers, judges, CIA and FBI agents, firefighters)
  • Military
  • Law enforcement
  • Casino jobs
DID YOU KNOW? To better grasp the virtues of credit checks for certain jobs, remember the case of the mayor of Dallas Dwaine Caraway, who helped himself with more than $450,000 in bribes back in 2018. He used a significant part of the sum to pay down debts.

Jobs That Don’t Check Credit

Don’t worry! Many employers actually don’t rely on background checks, which means that there are enough jobs you can do without being on the offense due to your credit report. For instance, you can become a nurse or teacher in the public school system. 

Of course, if you’re not interested in social, healthcare, or education, there are plenty of other options. 

A career in journalism or the catering industry could be on the table if you want to avoid a pre-employment credit check. You could look up entry-level job applications for a customer service representative, administrative assistant,  delivery driver, etc. Finally, various home and remote jobs have been mushrooming since the beginning of the COVID-19 pandemic. Be it that your niche is programming, content writing, bookkeeping, translating, or recruiting – nobody will ask any inconvenient questions regarding your credit report.

DID YOU KNOW? If you’re currently navigating the U.S. labor market, feel free to consult our piece on the most efficient job search engines. 

How to Get a Job With Bad Credit

In any state, it can be tricky to land a job when your credit history screams to employers that you lack trustworthiness, even if that’s not necessarily true. Here’s a list of key tips we compiled to help:

Monitor Your Credit Score

Before sending any job applications, ask for free credit reports from the three major credit bureaus: Experian, Equifax, and TransUnion. Take the time to examine your financial situation and FICO score.

Review Your Credit Report for Inaccuracies

Each credit report can contain a myriad of errors, which can then lead to situations where a job offer was rescinded after a credit check. However, negative items can be disputed pretty easily (albeit it takes time), so be sure to see our article on how to remove negative items from a credit report.

Improve Your Credit Score Over Time

The more you file disputes, the sooner you can boost your digits, even if just a little bit. Improvements will polish up job applications and make you bullet-proof for any background check, so try to develop a credit fixing strategy. Or, look for a company such as Credit Saint that can assist you with that.

Know Your Rights

Read the FCRA carefully and become familiar with local laws in the state where you’re applying for a position. Remember that employers must clearly state that you were denied the job due to credit and that they are obliged to give you a few days to try to refute items.

Apply for the Job Either Way

Try your luck and send the resume. Don’t let your FICO score determine you as a person. However, be prepared to show employers that your maturity and responsibility are on par.

Prepare an Explanation in Advance

As a responsible person, don’t shy away from your credit history. This means that you should be the first to bring it up during the interview. How to explain bad credit to a potential employer? Start with a brief clarification regarding the causes of your financial situation. You should also mention the details of your credit repair strategy so that employers see that you are efficient and learn from your mistakes.

DID YOU KNOW? Roughly 33% of employers decide whether to hire someone in the first 90 seconds of the interview. The better you prepare for the interview, the more likely it is that your credit score won’t affect a job offer.

Can Bad Credit Affect Employment?

Low credit scores will jeopardize your employment prospects if you fall prey to a fatalistic attitude. Luckily, we prepared for you a whole package of hope-inspiring information. You should become familiar with employers’ motivations for adhering to credit screenings during the hiring process, your rights guaranteed by federal law, and a list of states and jobs that do not demand a background check. Finally, we provided you with tips on how to increase your odds of getting the job regardless of your credit.

FAQ

What credit score is too low for a job?

The sector in which you want to land a career dictates the relevance of your FICO score. For instance, jobs that demand money management abilities, poor and fair FICO scores (ranging from 300 to 669) may indicate to others that you lack trustworthiness. On the other hand, there are a plethora of jobs that don’t rely on such criteria.

What jobs don't do background checks?

Education, healthcare, and the catering industry are safe zones for those with bad credit. Additionally, any freelance or remote job is also a good choice. Heck, you can even be an Uber driver if you want to. So the brief answer to the question of can you get a job with bad credit is – of course!

Do you have to have good credit to work at a bank?

For any financial or managerial position, employers maintain the practice of credit screening to deem a potential employee’s responsibility and decision-making skills. Even in states where local laws constrain such practice, financial and government sectors are exceptions. This doesn’t mean you can’t try your luck and apply, though.

ABOUT AUTHOR

I learned a lot about finance after working for a digital marketing company specializing in investing and trading stocks, forex, etc. After that, I got exposed to other verticals such as wealth management and personal finance, which further improved my understanding of the financial world.

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