Is a Bad Credit Check Really That Bad?

Posted on 06.02.2021

Image for Is a Bad Credit Check Really That Bad?

When you think about getting a credit check for a job, what’s the first thing that comes to mind?

Maybe that it might lower your credit score or that an employer will learn every detail about your financial history, including something they may not like.

However, a credit check for employment is considered a soft check and doesn’t lower your credit score.

A credit check verification is simply a report that tells an employer about your ability to manage your credit and finances.

An employer who conducts a credit check can receive information about account opening dates, how much debt you have, your personal information, bankruptcies, your payments history, collections, and more.

If you’re applying for a job that requires handling cash, large sums of money, or sensitive financial information, your employer might ask for a credit check verification.

Your credit report might also be assessed if you're applying for a loan or renting a house.

But what if you have a bad credit report? What happens if you have some debt, missed some payments, or declared bankruptcy before? Does a bad credit report affect your ability to get a job?

It’s a little more complicated than that.

Any signs of bankruptcies or consistently missed payments can signal to the employer that you can’t manage your finances well and it might prevent them from trusting you with company funds, client investments, or expensive inventory.

While you should be thinking about improving your credit for the future, whether you’re denied a job because of a bad credit report ultimately depends on the role, employer, and where the red flags are.

If you’ve had credit issues in the past, you should decide whether you want to let your employer know before they conduct a credit check.

They’ll likely allow you to explain yourself, so take advantage of that moment to communicate clearly with the employer about your circumstances.

At Triton, our goal is to support you through the job-seeking process. Our background checks are secure and reliable to help employers hire you with confidence.

Learn more about our different services by calling us at 1-844-874-8667 or visiting www.tritoncanada.ca.