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

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 rejection.

This is why we always say taking the insolvency route should be the 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.

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 six 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 still 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. In the past, it was not unusual for a supplier to incentivise 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 handling a large amount of cash may also be seen as unsuitable for someone with an adverse credit history.

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

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

1. Going for a job that doesn’t have those risk elements 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 risk elements, 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, see if you can have a progression plan that 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. Just so you know, 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.

The Real Debt Guy is a qualified financial adviser and a UK debt expert. The information in this article is considered to be true and correct at the publication date.