11 Oct Do You Need a Credit Check for a Job?

Have you ever wondered whether you need a credit check for a job? Most people aren’t aware that employers have the right to check their credit, particularly within the probation or recruitment process of employment. Knowing this information can be nerve-wracking, especially if you have bad credit, public records, or derogatory marks on your credit report, leaving wondering whether you need a credit check for a job.

Usually, employers don’t ask to check your credit during the recruitment or probation process; however, candidates for finance roles might be asked for credit checks.

Let’s discuss whether you need a credit check for a job and what to do if your employer asks for one.

Why You Might Need a Credit Check for a Job

Employers might ask to check your credit score or report for various reasons; to test financial acumen, trustworthiness, risk, and to screen for fraud.

Financial Responsibility

If you’re applying for a job that requires financial acumen, one where you’ll regularly have to work with money, your employer will want to ensure that you’re financially responsible. A good credit history is a great indicator that you’ll be successful in a financial role.

Trustworthiness

Many late payments, accounts in arrears, or high debt can raise concerns about how trustworthy of a candidate you are. Employers might request a credit report to ascertain whether you might misuse company funds.

In some industries, like finance or insurance, a candidate’s financial stability can be a large deciding factor in hiring and determining whether they’re suitable for a role.

Fraud Prevention

Credit checks can help identify individuals who have defrauded or stolen from others.

What to Do If Your Employer Wants to Check Your Credit

Firstly, note that an employer can’t check your credit just because. They must have a specific cause to ask for a credit check and be able to justify it in accordance with related aspects of your role, such as financial responsibility.

Under the National Credit Act, they must also have your consent to conduct a credit check. No one can check your credit without your consent, which violates the NCA and POPIA provisions.

If your employer wants to check your credit, they must obtain written consent from you and be able to justify the check. If you feel that your employer wants to check your credit unjustly, you can say no.

How to Get Better Credit

If you’re worried about losing out on potential employment opportunities because of bad credit, there are steps you can take to better your credit, such as paying off debts, improving your credit utilisation ratio, and removing derogatory marks from your report.

Paying off debts will lower your credit utilisation ratio (the amount of credit you use compared to your total limit), your DTI (debt-to-income ratio), and reduce account balances. In turn, your credit score will go up.

You might also consider removing derogatory marks like late payments, debt review, prescription debt, and other adverse reportings from your credit profile. Credit Boost can advise you on how to boost your credit profile and score, attaining a squeaky-clean credit report.

Don’t let bad credit hold you back! Contact Credit Boost today and get help reviving your credit report. If you’d like, check your credit for free online with Credit Boost’s free credit checker.