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Debt and employment

15th May 2024 · 4 minute read

Published by The Real Debt Guy

  • Default
  • CCJ
  • Bankruptcy
  • IVA
  • Adverse credit

Can an Employer Deny Me a Job Because of My Bad Credit?

Can having a bad credit history stop me from landing my dream job?

Just like millions of people in the UK, you’ve gone through a tough time financially and found yourself with an adverse credit history showing on your credit file. You’ve managed to get yourself mentally and emotionally strong again and are motivated to enter the job market. You may have read somewhere that employers credit check potential employees before hiring them.

Now you’re worried, what if I can’t get a job because of my adverse credit history?

No need to panic.

We got you!

Job hunting

If you go for a job where the employer believes your financial position may influence your decision making and in turn negatively affect the business. You may find that the employer will reject you for that position. This is not to say you’re not an honest person, you will essentially be judged based on the behaviour of others in the past. Unfortunately, the job market is very judgmental.

Which adverse marks you have on your credit file will determine how you are affected. The more serious the adverse credit history, the higher the likelihood of you being rejected.

This is why we always say taking the insolvency route should be the very last resort. These include Individual Voluntary Arrangements (IVAs), Debt Relief Orders (DROs) and Bankruptcy.

County Court Judgments can also seriously affect your chances of landing certain roles.

Which jobs are impacted by my credit rating, TRDG?

One example would be the police. You may not get hired if you have an adverse credit history because they may believe you are at risk of being corrupted by criminals. If you’re insolvent, have been in the last 6 years, or have a county court judgment showing on your credit file, the chances of being rejected will be high. If you have defaults, again, you may be rejected or you may be accepted on the basis that you have an agreement in place with the creditors. This is not a guarantee though.

Another example is a procurement role, suppliers need to win business with potential customers especially if large profits are at stake. It was not unusual, in the past, for a supplier to offer an incentive to the decision maker to favour their business over another. The employer may see you as more likely to accept incentives due to your vulnerability.

Any roles that involve a heavy amount of cash handling may also be seen as unsuitable for someone with an adverse credit history.

It’s not you, it’s them!

The last thing we want you to take from this, is the feeling that you are not employable. Most of the time the reason for the business’s decision is due because they must follow the rules and guidance set out by their governing body. The business knows full well that negative actions are a result of a person’s integrity and not their credit history.

What are my options, TRDG?

Your options are plentiful, that’s the good news, and they include:

  1. Going for a job that doesn’t have those elements of risk in place. This may be your chance to try something a bit different and will help you develop a new skill.
  2. If you are set on the type of role that has those elements of risk, speak to the employer, and ask if it’s possible to perform the role without the most problematic parts of the risk elements.
  3. If you like the company, then see if you can have a progression plan which means performing a different role. With the plan for you to eventually perform your desired role once the adverse credit history is no longer visible.
  4. Lastly maybe it's time for you to be your own boss and make your own rules by starting your own business. Remember, if you have decided to take the insolvency route you may find that this option is not available to you.

This is just a small bump on a long and successful road.

Don't forget to read The Real Debt Guy's final thoughts below!

The Real Debt Guy's final thoughts.

We strongly believe that communication is key to resolving most challenges. If you’re good at what you do, being honest with your employer about your situation may allow them to explore ways for you to still be hired for the role. Additionally, it will also show that you are a person of integrity, you are not trying to hide anything.

Remember your life is a journey and if this role is not part of the journey, then it will not happen.

Check out our article “How to find your life purpose and get paid”.

You’re not alone on this journey, The Real Debt Guy has your back!

Simplifying complicated matters.

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