You would think that being unemployed is stressful enough, but when you find you’ve been passed over for a job because your credit isn’t as good as it was when you were employed, you tend to feel the pressure a bit more. It comes to much surprise that more and more companies are checking potential hire’s credit scores before making a commitment in them. The motivation behind this tactic- it is believed that your potential job performance can be loosely hypothesized through your credit score.

The Society of Human Resource Management recently surveyed employers and questioned whether or not they run credit checks on new employees and potential new hires. They found that 60% of employers currently apply credit checks as a standard practice in their businesses. This finding has risen 20% since 2006. Whether the practice is fair or not, it’s being utilized and can directly affect your chances of getting hired. It should be expected to become a more common practice with more companies as the job market becomes increasing competitive.

To give the credit checking employers a break, positions in the finance and accounting field bask in the limelight of money. Should they really employ a person who is unable to balance and handle their own finances? Their decisions to check an employee’s credit could simply be a safeguard depending on the nature of the position being applied for. Embezzlement and fraud are very popular these days and when employers need to hire for a position where it’s fairly easy to engage in, they need to take every precaution.

Other reasons for employers to check a credit score have to do with personal character and if money problems would affect their job performance, the ability to separate equally qualified candidates from another, and a simple comparison to verify if information of a resume matches up with their financial situation. If by chance a person is passed over due to their credit history, they have the right to be given that information by the employer and need to be given the information from which they based their decision on.

If you’re like the many who are unemployed, your credit has slipped some here and there. CCA has a few pieces of advice that shouldn’t be ignored.

  • Prepare yourself for the credit check. Be aware of your credit score and record or history. Fix any errors there might be with the Federal Trade Commission. It’s a slow going process so be sure you have proof of the error.
  • Disclose your credit standing if an employer asks to run a check. This is your opportunity to inform them of any personal information that explains your circumstances. Many companies want to be understanding, give them the chance to make their own call.
  • Know you’re not alone. Many job seekers have been unemployed as long as or longer than you have been. Your situation is a common one that many unemployed folks experience.