by Bob Schmidt

Created on: October 30, 2009

Bad credit reports can have serious negative effects with any human resources manager. It might seem unfair that credit problems can cause employment problems, but they do. With the current job climate being so competitive, care should be taken to keep your credit history clean, and free of all negativity.

Character Assessment...

Those who do the hiring and firing of employees seem to feel that how one pays their bills is an indicator of what kind of employee one might make. This could especially be true of jobs that require close attention to details, and organization. Potential employees who aren't viewed as responsible in their personal bill paying are assumed to have an attitude that might carry over into the working environment.

Bad Credit Policy...

In many businesses, personnel policies that require good credit as a condition of employment are not unusual. Locally, the police department will not employee new law enforcement officers with bad credit. It is important to remember that one's personal credit history is created by each individual. No one else is responsible for a bad credit history.

Affects Automobile Insurance Rates...

Automobile insurance companies rate every driver based upon their credit history. They elevate the cost of insurance for drivers who have poor credit histories. This may be reason for any employer to not offer a job if the use of a company owned vehicle is involved. It is hard to justify paying higher insurance rates for employees with bad credit histories, even if they have good driving records.

Distractions of Bad Credit...

Those who have bad credit usually have collectors seeking their attention. This type of problem is not welcome by any employer. Not only does it create an image problem, it is a distraction that will not be tolerated by most businesses. Employees are expected to be focused on their jobs, and personal problems do not contribute to doing a good day's work anywhere.

Company Image...

Every employee of a company becomes the image of the company when viewed by the public. As important as corporate image is to most companies, they will not tolerate any potential negatives to their company image. An outstanding potential employee might be given a chance to prove himself despite credit problems, but it can certainly be an obstacle to be overcome. The best solution is to maintain good credit at all costs.

If there are problems in the credit history area, be sure to address this subject with the person who does the interviewing for new employees. There are exceptions to every rule, and honesty is usually a good first step towards a possible solution to this type of problem.

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