How Poor Credit Can Make You Lose Your Job

Most people manage to avoid making the common mistakes that can get them fired from a job – absenteeism, poor work performance, etc. But not many people are aware that these days your personal financial bad habits can make you lose your job just as easily.

Employers Check Your Credit
It is estimated that about 50 percent of employers today conduct checks of their employees’ credit. These checks take place either shortly after employment begins or periodically throughout an employee’s tenure with a particular organization.

In the event that you hit hard times and struggle to make payments on your credit, mortgage, or other borrowed funds, the appearance of such items on your credit report could lead to your termination from your job. Even if you manage to avoid letting your credit troubles put you out of your job, persistent credit errors, late payments and an overall low score can lead to your being denied a promotion, a pay raise, or other job-related incentives.

Where It Has Happened
Several media outlets in Cleveland, OH, recently reported the story of a man who lost his job as a military payroll accountant after 17 years. The man and his wife had wracked up more than $6,000 in credit card debt due to health treatments and other expenses. Because of his credit problems, the man lost his military security clearance, which prevented him from continuing his job.

The same thing was reported to have happened to more than 60 other government workers. The reasoning is that some companies tend to believe that if employees develop serious credit problems, they might be considered less trustworthy with confidential information or trade secrets.

Other Complicating Factors
Besides the necessary expenses that contribute to your credit debt, becoming a victim of identity theft can create a slew of other problems that can drag down your score. Even in such situations, the process of clearing up errors with your creditors is time-consuming and can be frustrating. What’s more, explaining the reasons behind your credit difficulties to your employer, may not be enough to prevent your from potentially losing your job.

What Can You Do?
The best way to stop the creeping threat of your credit problems getting you fired or denied advancement opportunities at your job is to be proactive in managing your credit and work to clear up any errors. There are products available that can simplify the process of dealing with your creditors as well as help prevent you from becoming a victim of identity theft.

Sign Up For Your Free Trial and Start Managing Your Credit With SmartCredit.com