Question by Sally P: Does anyone work in HUMAN RESOURCES and know what entails a pre-employment background check?
I have been offered a wonderful well-paying position, pending the background check. I have no skeletons in my closet, outside of some financial credit issues. The job I am getting does not involve finances of any kind. Does anyone know anything about background checks and could this prevent me from getting the job?
Best answer:
Answer by Joni H
Different companies do different background checks. Usually, they include:
Verifying your previous work history and salary
Verifying your education
Checking for any criminal convictions or legal problems
Verifying military service, if any
Complete Credit Check
Checking references with previous employers
Yes, a poor credit history can ruin your chances of being hired if the job includes a significant degree of responsibility. That’s because many companies regard a low credit score as an indication that a person is irresponsible, or has poor decision-making skills. They don’t want you making decisions that will impact their bottom line, if you can’t make good decisions about using your own credit cards.
For future reference, here’s the best way to handle poor credit: inform the employer ahead of time. When the interviewer mentions the background check, simply say, “You will probably find that I had some credit problems last year.” Then tell the employer briefly why they occurred, what you’ve done, and what you learned from the experience. “When both my wife and I lost our jobs at the same time, we couldn’t make our car payments! Since then, we’ve made payment arrangements and are on track to get caught up. I learned that I need to have more money in savings, before I buy a new car!” or whatever. Another example: “When I first got out of college, I got into trouble with credit cards. I’ve learned my lesson now, and paid almost everything off!”
Using this technique, I have seen some employees with poor credit and even a bankruptcy get hired. Meanwhile, if the poor credit was a surprise to the employer, other applicants got turned down, even if their credit ratings were not as low.
This won’t work for every job. For example, companies are understandably hesitant to hand you a corporate credit card for travel, if you’ve demonstrated that you can’t handle credit. But it will work for most jobs.
Know better? Leave your own answer in the comments!
They will likely check your credit history as well as a criminal background check. Whether it prevents you from getting the job depends upon the employer and usually the position for which you are being considered. Some employers may consider a poor credit history as a lack of responsibility. Some are only interested in the criminal background history. Others will look at the credit history but give you a chance to respond and base their decision upon your response. I have some issues with credit history because I had a business a few years ago that didn’t make it but I chose to take the hit on my credit history and pay all my debts even though it is taking me a while rather than to file bankruptcy when the business failed. I’ve found that prospective employers since then have respected my decision and it has not stopped me from getting any positions for which I have applied since then. However, I informed them of exactly what they would find when they had me sign the release to do the background check and have found that volunteering the information and explaining it before they discover it reduces their concern. In my current position, I do all the hiring for our company and I know that because of my own situation I do not put a lot of weight in the credit history of prospective employees who are right for the job in all other areas. You may find the company that offered you this job is the same way so don’t stress over it – just be patient while the reports come in and if they do question you about the credit history be honest and explain what caused it and how you plan to resolve it. Good luck.