Jason Monastra

My life and thoughts out on the web

This past weekend, approached by a family member, with the question of background checks and credit checks.  Most people do not realize that companies have forgone the days of accepting your references as an indicator of your character and are turning towards in depth background checks and credit histories to determine your candidacy.  For the people that have solid histories, this is not a concern but what about people that re-established themselves or gone through a divorce that took a tole on their credit - should that be brought into consideration?  Whether you agree or not, business is looking more into your personal life to make sure they are making the right hire.  Hiring the wrong person has become more costly.  Lawsuits, negligence, time lost and theft are just some of the issues that plague this economy.  Not to mention wasted time and simply not doing their job.  Companies are looking for more and more ways to screen out those possible bad apples and credit is the latest tool.

How do you handle this I was asked?  What happens if they run my credit since I have some issues.  I have always found that heading the issue off and being forthright seems to offer the best possibility of success.  If you have a credit issue and you know the company is going to run a credit history - discuss with them the potential problems upfront.  First and foremost, know before the company knows.  If you have not gotten your hands on a credit report lately - do so now.  There are countless sites out there that will run your history for you and then provide a detailed report discussing your score, possible problems and solutions to increase your overall score and how you look.  There is nothing worse than not knowing.  Company wants to hire you and then receives a negative report - they tell you that you have not received the role but there are no details.  Continuing on without knowing is not the answer.  Know what the company will find out before they ever run the report.

Solving credit issues.  Not all companies run reports currently but it is an increasing number that are using the screening tool.  If there are bumps in your history, look for ways to smooth them out before entering the process.  If there is unpaid bill or a late payment, call the creditor and discuss possible solutions to resolve the matter and clean up your credit.  Sometimes there are just issues that you did not know, like when moving a late tax bill or your last power bill that you never even knew of.  All of these things show on your history if they are pursued.  Some are easy to resolve and some are not, but hit the low hanging fruit first.  There are credit counselors and other services out there that offer professional advice on how to clean your credit.  Look to those services if you are at a dead end.  Professional advice is always a good source.

Your credit will follow you everywhere, so matter if you take a long term or short term approach, resolving the matters are needed for a successful future.  If you are in the midst of the job search and this obstacle is coming up frequently, I suggest staying away from industries that are more likely to run the report such as financial services or any role where handling money is a major responsibility of the position.  Be honest and upfront and know your report.  Head off possible issues before they arise and discuss with the hiring manager once the report becomes part of the process.  Be sure not to bring up the issue during the first interview, as you never know if it will be needed or if you are being considered strongly for the position.  No reason to place a red flag near your name before needed.  Build your value with the hiring manager first.  If the manager really likes you and think there is a good fit, there might be some ability for you to explain the issues and therefore overcome the report results if they are negative.