Consumer / Kirstin Cole

• Apr 7, 2008 7:48 pm US/Eastern
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  Hard Times: Bosses Take Credit Scores Into Account

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Hard Times: Bosses Take Credit Scores Into Account

Bad Finances Can Kill Your Chances To Get Hired, Retained & Promoted In Many Professions

NEW YORK (CBS) ― The weak job market is making it tough for recent and soon-to-be college graduates to find work. But there's another issue complicating things. Many employers want to know credit scores.

Aubrey DeCarlo is excited to be leaving college behind to search for her dream job, but her student loan debt is driving down her credit score, a number of employers are giving a hard look.

"It's hard enough for a lot of us to get a job to begin with," DeCarlo said. "It just seems like a vicious cycle."

DeCarlo is facing about $50,000 in debt. She's in deeper than many, but certainly not alone. About two-thirds of graduates have student loans, with the average balance more than $21,000.

"I have friends who have defaulted again, and again, and again because they cannot get a job in their field," DeCarlo said.

Certain employers are especially likely to rely on credit scores.

"More and more employers are starting to look at that," said Mark Kantrowitz of finaid.org.

And it's not just college grads feeling the crunch. Employers are taking a look at employees' bad credit and that can even affect your ability to keep a job. They're using credit reports when it comes to promotions and even retention.

"Banking industries, government related jobs, police, fire, those type jobs are pulling credit more and more," said Curtis Arnold of Cardratings.com.

An applicant can tell an employer not to look into their credit, but that may be a red flag.

"Just the fact that you're opting out may tell the employer 'Hey, why is this, he or she opting out?'" Arnold said. "Is there something they're trying to hide about their credit?"

Check your credit score and let the employer know why you have any blemishes. In the meantime, keep your debt as low as possible and pat bills on time.

Talk to you creditors they can defer payments if you're in trouble, ignoring bills very quickly gives you a bad score.

So keep your credit clean or it could cost you your job.

(© MMVIII, CBS Broadcasting Inc. All Rights Reserved.)

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