Credit checks can be part of the vetting process when employers check the references of job candidates. As explained by consumer financial website NerdWallet, prospective employers can access a modified credit report and use it to determine potential risks if they hire you. A bad credit report doesn't necessarily mean you won't get the job. In some cases, you may be able to explain black marks on your credit report and your plan for rectifying them.
Why Employers Look at Credit Reports
A credit report can say a lot about a person. If you have lots of late payments, for example, it could mean that you're not very organized. It can also show that you don't live up to your agreements. If you use too much of your available credit (financial experts suggest keeping this number under 30 percent), it can be an indicator of financial distress. Employers may see you as more likely to commit theft or fraud to ease personal money pressures. Finally, when your own finances are a mess, employers will likely have a hard time believing they can trust you with sensitive information or company money.
What an Employer Can See
A prospective employer cannot access your complete credit report. They can't see your credit score or any account numbers. They cannot see information that would violate equal employment laws, such as date of birth or marital status. They can only see your payment record (on-time and late payments), the total amount you owe and your available credit.
The three major credit report companies – Experian, Equifax and TransUnion – use hard inquiries in calculating your score. A new credit card application, for example, is considered a hard inquiry, and it can temporarily lower your score, though usually not by much. A credit check by a prospective employer is considered a soft inquiry, meaning that it will not take any points off your credit score.
Getting a Job as a Bank Teller
Working as a bank teller is best suited to individuals who like working with the public. For entry-level positions, a high school diploma or equivalent is typically required. The employment website Indeed lists the skills employers typically seek, including the following:
- Ability to multitask
- Attention to detail
- Basic math skills and the ability to accurately count cash
- Computer skills
- Customer service skills
- Excellent communications skills
- Strong sense of ethics and integrity
The Likelihood of a Credit Check
In a nationwide survey of more than 1,500 human resources professionals, NerdWallet found that 25 percent conduct credit checks on applicants for certain positions. Only 6 percent said they conduct credit checks on all applicants. Credit checks are typically conducted on people who will handle money or sensitive information, or if a security clearance is required.
As a bank teller, you're dealing with financial instruments and sensitive information all day long. There's no getting around it; banks perform background checks on job candidates, and a credit check is part of that process.
Repairing Your Credit
There's not a lot you can do in the short-term to rectify a bad credit report. Information that is negative – but accurate – can stay on your credit report for seven to 10 years. This includes default on debt and bankruptcy. However, there are definite steps you can take and you can do them yourself. As Experian explains, a credit repair service can be costly, and they can't do anything you can't do on your own for little or no cost.
You can improve your credit score incrementally by bringing accounts current and making payments on time. It may be possible to settle a debt for less than you owe, depending on your circ*mstances. If you've lost your job and missed payments to a credit card company, call the company and find out if you have options. The company may let you make smaller minimum payments or reduce the total amount you owe. Most companies would rather get something from debtors than lose everything.
High credit utilization can negatively impact your credit. That means that you owe a high percentage of your total credit limit. If your total credit limit is $10,000 and you owe $8,000, you're using 80 percent of your available credit. Pay down your accounts to reduce the percentage. You may also be able to request a credit increase, to $16,000 for example, cutting your credit utilization rate to 50 percent.
Getting a Job With Bad Credit
There's no one-size-fits-all solution for getting a job with bad credit. A prospective employer has to inform you that a credit check is part of the application process. Your signature is needed to authorize the credit check. It's your right to decline consent for a credit check, but know that an employer has a right to check your credit and a right to move on to other candidates if you do not give consent or if your credit check is derogatory.
One option is look at jobs that don't check credit reports. Again, employers differ, but you have a better chance at a job that doesn't involve money, security or sensitive information. As the economy speeds up after the COVID-19 shutdowns of 2020 and early 2021, many employers are eager to hire workers. The U.S. Bureau of Labor Statistics reported that, as of the end of June 2021, there were approximately 10.1 million job openings in the country. Some employers may be willing to forgo a credit check or be more forgiving of a derogatory report so they can hire the workers they need.
Credit card company Capital One offers these tips for putting your bad credit report in the best possible light for prospective employers:
- Showcase your qualifications. Discuss relevant work history, skills and education. Demonstrate to the prospective employer why you're a good fit for the position.
- Briefly explain your derogatory credit. It's one thing if you're disorganized and just forget to pay your bills on time. But if you lost your job because of COVID-19 and had trouble making payments, that's a different story. Most employers will understand that you were faced with an extraordinary situation, and that incurring too much debt is not typical behavior for you.
- Talk about your plan of action. You don't have to give all the details, but outline for your prospective employer what steps you've taken to start rebuilding your credit.
If You Can't Get a Teller Job
You may not be able to get a teller job due to a bad credit report. However, you can still take steps to prepare you for a future banking career. Work on repairing your credit. Take another job that allows you to use your skills, develop new ones and establish a solid work history.
Although a high school diploma is usually the minimum requirement, consider advancing your education with business courses online or through your community college. Earning an associate degree usually takes two years, but some institutions have shortened the length of their terms and offer courses year-round, enabling you to get your degree in less time. College credits or a degree can help you stand out among applicants when you're finally ready to apply for a job as a bank teller.
