I recently heard from Arianna, one of my readers who has been waiting for what seems like forever to finally get a job offer. And now after several great interviews and even better feedback, she’s finally in the home stretch…they’re ready to make an offer. All she has to do is wait just a little longer until they finish the background check. But she’s nervous about her poor credit history.
Even though the job interview process went remarkably well (we know not all do) and it looks like her continued determination (and patience) in finding the right job is about to pay off, Arianna’s worried that her poor credit score will be the reason they don’t make an offer. Here are her words:
I have a low credit score due to a bad divorce that left me with 1 of 2 houses going into foreclosure. It has not been foreclosed on as of yet but my score is around 610. In my new job, I’ll have budget responsibilities and I am concerned they may second guess me after seeing that. Ronnie Ann, I had to choose between being a single mom that feeds her kids or keeps a house. I chose feeding my family. Will that kill the deal for me or will they give me opportunity to explain should it raise concerns? People I know are giving me conflicting opinions. What do you think?
When I read this it broke my heart…especially knowing this is something all too many folks are going through right now. Poor credit history is becoming more and more common – and not always because someone has been intentionally irresponsible. There are countless stories nowadays with similarly agonizing choices. Since when did credit scores become the all-powerful Oz – pulling all the strings behind the curtain? There are so many contributing factors (health, divorce, identity theft, one bad mortgage decision) that may unfairly leave a very responsible, job-worthy person marked by a low score – ironically unable to get the very job that will help pull them out of the hole. And sometimes they don’t even get the chance to explain
While there’s no way to know for sure how heavily credit scores weigh in this particular company’s hiring process, I do know each company has its own policy. For some, 610 would be just fine – especially if they see Arianna’s choices as anything but irresponsible. But for others, it could be a deal breaker – especially when fiscal responsibility is part of the the job itself.
Luckily Arianna has a few things on her side:
- She has great experience that matches what the company is looking for
- She has a work history that shows responsibility
- She sailed through the hiring process, leaving lots of good feelings that can help weight the decision in her favor
- She is working with a recruiter who knows her story and can help make sure her credit score doesn’t sink the offer
Will her low credit score keep them from making an offer?
Unfortunately, there’s no way to know for sure until she finds out. I’ve been reading some articles on the subject, and there certainly are stories where it appeared the credit score was the reason, but it’s hard to know if it was the deciding factor or if it only added to the decision. There are also plenty of stories where the employer was interested enough in a candidate to fairly consider whether or not the credit score truly means they shouldn’t make the offer.
While I can’t give her THE answer, if I were Arianna I’d stop worrying about – or even listening to – all the conflicting opinions since it isn’t helping and won’t change the outcome one way or another. At this point, I’d just set my mind on seeing myself in that job. Maybe a nice extra handwritten note to her main contact(s) at the company (focusing on her interest and not her poor credit history) – although if she’s working with a recruiter, explaining all to her recruiter and asking for her help may be her best bet. Unless the recruiter has other candidates up against Arianna, she very much wants this offer to go through too!
If I had to guess what will happen, my gut tells me that since the company really seems to like Arianna (the rest of what she wrote me leads me to feel there is a strong connection), they will most likely at least give her and/or the recruiter a chance to explain if her poor credit score is indeed a sticking point.
Should I check my credit score if I’m starting a job search?
And for anyone else…to help make sure your credits score does NOT keep you from getting an offer (sometimes we don’t even know there’s a credit score landmine waiting for us), Mel Otero in her article (see below) suggests you be proactive, honest, and positive:
In summary, do your homework and obtain a copy of your credit report, resolve any errors, take steps to improve the score and be honest. With honesty and a positive attitude, a prospective employer may be willing to give you the opportunity to prove yourself worthy of the job.
Good luck, Arianna!
Please add your thoughts and advice for Arianna. I know all of us are hoping to hear some good news from her soon!
Hi, Ronnie Ann:
Unfortunately, Arianna’s credit report will prevent the company from hiring her for a position with financial responsibilities. They figure, if she is unable to handle her personal finances, how will she handle the company’s.
Arianna may be given an opportunity to explain the reason for her poor credit, but the company may have a deaf hear.
Due to the economy recession, job losses and the housing bust, tens of millions of Americans are experiencing the same as Adrianna, but companies are still utilizing credit reports as a major determining factor regarding who they will hire.
Unfair? Yes. Realistic? Yes.
Last year, due to a job loss and major illness in which I almost died, for three months, I was unable to pay the mortgage on my rental property (the bank would not agree to a short sale of the property. They wanted ALL of the money. Eventually they went bankrupt, and went out of business.); a business loan (I negotiated a lower payment and paid it in full. But, the lender for the second loan would not negotiate.) and ONE medical bill (the hospital will not accept monthly payments).
After a slow, year- long recovery, I interviewed and impressed a Fortune 500 company for a job which I would not have financial responsibility. They checked my credit report, called me for an explanation, and stated, “sorry, but we are unable to offer you the job due to your poor credit report.”
Ronnie Ann, the dings on my report were less than THREE months old. Prior to my illness, I had A+ credit on ALL of the credit bureaus.
My plan is to send a letter to all of the credit bureaus, addressing each issue. This way, any potential employer can see that I have tried to pay the loans, but the lenders refuse to cooperate.
-d
Hey Ronnie Ann,
As someone outside of the US looking in [Yeah, I'm jealous
] I’m no expert on what’s influencing the average American hiring manager but I am 100% confident of this:
- for every company basing hiring decisions on credit scores there will be at least one that won’t give a hoot and many more looking at far more relevant factors (candidate experience, attitude, potential, fit-for-the-role, etc.)
- for every Fortune 500 company there are a hundred smaller businesses with real potential for growth (even in this market) and that potential relies a great deal on them getting access to new, hungry and able people
- in every rejection there is an agenda that goes way beyond the reasons most of us hear. They might just tell you it’s your credit score because it’s easy for them to do so
- Every job you don’t get offers you new, first-hand experience that moves you closer to the last ‘No’ and first ‘Yes’ of your job search
We have an old saying which is also appropriate here. Edited for the sake of propriety it is, ‘Don’t let the b*stards grind you down!’
Oh D! What an awful story. Soooo stupid on their part. Makes me want to scream. Can only imagine how it made you feel! Smart to do all you can to get notes of explanation in your credit bureau files. Even if we can’t change the system overnight (oh how I hope it does change), we can do whatever possible to protect ourselves.
As always, I wish you the best!
~ Ronnie Ann
Paul…what a wonderful comment! We needed something like that. So many folks going through hard times – we certainly don’t need credit bureaus mucking up stuff that doesn’t need to be mucked up!
I’m sure a lot of people will get comfort from your comment. And I hope folks will also wander “across the pond” to your blog – one of my favorites. A breath of fresh air – as are you.
Thanks again, Paul.
~ Ronnie Ann
Arianna here! I GOT IT!!!! I am so happy I can’t express it either in word, song, rhyme, or expression. First of all, Ronnie Ann, thank you for all of your support in my nutty job hunt. Your support and advice have been a crucial factor in securing my dream job.
Now the rest of the story…..
After emailing you and reading your post, I decided to visit with my Recruiter and my would-be manager regarding my credit before my report came back. I am a believer in “Right Time Right Place” and during conversations unrelated to my credit, I found a way during both calls to bring up my credit. Here is what I heard paraphrased of course, “As far as I know, unless you are showing a lengthy time period of serious delinquencies and charge offs, I don’t think it will be an issue. I will be sure and intercept any questions now that you have explained your history. I have full faith that you are our newest employee and we are going to proceed as such and I don’t want you to worry about it.” – that was from my recruiter. Then I spoke to my manager. Here is the amazing part, my manager was also in my exact same shoes a couple of years back when they got hired on to with the company. Single parent, divorced, 2 houses in foreclosure, etc… My manager’s words paraphrased, “You have worried one second way too long about this. We live in an economy where more people have poor credit even decent credit. All we care about is that you are making efforts to turn that around by believing that we are the company that will give you the keys to the car of success, growth, and longevity. Your documented history of excelling in this business is like our insurance policy for that car. We have no doubt in our investment. Should anyone ask a single question, and I assure you they will not, it will never get to you because I will squash all concerns immediately. So let me say, welcome to the company.”
I can’t tell you how great it was to hear that. So in a nut shell I came to the following conclusion…
Be honest. Own your mistakes. Show that you are working hard to make them right. Don’t believe for one second that you are the only person in the position. I promise, as I am now convinced, you are not. Be proud of you and when you are, your value is far more obvious to those who are in the position to judge.
Thank you again Ronnnie Ann. and one more thing, this new job is not one I found. They found me on linkedin. I am also a believer in that as well now. Since they found me, I have recommended to several friends that they put up their profile and expand their networks and 2 of them have been found are in the interview process as well. I had no idea how that site worked until my recruiter explained how companies pay to utilize it. Very worth it. Thank you thank you thank you Ronnie Ann!
Thank YOU, Arianna! This just put a huge smile on my face. I am sooooo happy for you!!
Congratulations!
Not only is this a company that allows you to be yourself and looks at the whole person- they really get it. And I love that your new manager told you not to spend even one second more worrying. Great the way they both rallied around you. Reflects on them but also on the person they see in you.
PLEASE everyone – read what Arianna wrote. GREAT advice on this issue, on Linked In and on the whole job search in general.
Thank you so much for sharing this with us. There is nothing as powerful than real world experience from my readers. I’m sure your words will go on to help others.
I wish you all the best, Arianna. Wuhooo!!! Please feel free to offer advice to others here if you feel moved.
~ Ronnie Ann
It’s wonderful that Arianna got the job, but for others in this situation, I have to mention that it really depends upon the industry. I have worked for 2 major financial services companies and part of the background check includes a credit check (I was also fingerprinted). Because I worked in HR, I know of people at all levels who had offers rescinded due to credit issues (including administrative assistants). Another reason to be diligent about your credit and credit reports.
Absolutely Jean! I’m glad you are emphasizing that Arianna’s experience doesn’t mean that credit scores don’t matter. But at least it shows that the door isn’t closed in all cases. An industry by industry, company by company situation I’m sure.
Of course, That’s why I hope people still follow Mel Otero’s advice:
“…do your homework and obtain a copy of your credit report, resolve any errors, take steps to improve the score and be honest. With honesty and a positive attitude, a prospective employer may be willing to give you the opportunity to prove yourself worthy of the job.”
Thanks for making such an important point, Jean. Just nice to know it isn’t hopeless in all situations. Also, not all credit score issues are the same and it’s definitely worth standing up for yourself if at all possible.
So it probably pays to meet it head on with honesty and sincerity see what happens. Worst they can say is “no” which they would have said anyway.
And of course, if at all possible, the best time to start working on your credit score is BEFORE you need it!
Again…thanks for adding valuable first-hand experience to the conversation. I know it helps folks who feel so confused by the entire process. Please feel free to add your voice any time!
~ Ronnie Ann
Thanks, Ronnie Ann! As I’ve written before, I love your site and the wealth of information here is truly helpful for job seekers. I’ve shared it with people all over the country!
Much appreciated Jean! Thanks for the support and for stopping by to add your own thoughts.
~ Ronnie Ann