We all that know bad credit is a bad thing, the clue is in the name, but did you realise how bad it can actually be? Yes, a bad credit rating can prevent you from obtaining affordable finance, and it may even prevent you from obtaining any finance. These are bad things and they have prevented many people from achieving the things in life that they would like to. However, it may be that a bad credit rating can have a negative impact on other aspects in life for some people.
If you are looking to forge out a career in finance, you may find that mistakes made in your past prevent you from achieving everything you would like to. This means that you need to be aware of the implications of a bad credit rating, but more importantly, you need to be aware of your own credit rating. If everything else in your CV and demeanour is on course for a great career in finance, don’t allow something that many people will not think about to pull you off track.
The following four factors may play a role in the hiring process when it comes to a finance career
- A potential employer may feel that someone who has been declared bankrupt or who looks to be in a perilous financial position is more likely to engage in fraud
- A potential employer may feel that a person who is struggling to manage their own money is not going to be competent in looking after other people’s money
- Some employers may feel that a bad credit score is a reflection of the character or judgment of the person involved
- As bankruptcy information can be made available to the general public, a financial employer may have concerns about employing someone in this position, as clients could find this information.
It is important to be aware that not every employer is going to take this approach and not every potential career in finance will need to meet this sort of criteria. However, given the competitive nature of the employment market, it is important to be aware of the slim margins between getting a job and missing out on a job.
Small differences matter in the Employment Race
If you are head to head with a candidate for a role, and you both have similar CVs, educational and work experience, it may be that the employer needs something to split the two candidates. In this regard, it is not infeasible to believe that the employer will opt to employ the candidate that appears to be in a stronger position with respect to their finance. In the history of work, there have been many more spurious and ludicrous reasons used to employ someone, so this would be far from the worst decision a firm has made.
This means that if you are looking for a finance role, or you want a job that may be in the public eye, you need to be aware that your financial history may play a role in what people think of you. This isn’t to say that this is fair or necessarily right, but it is a factor, and if you don’t address these matters, you may find that your career stalls through no fault or issue with your skills or what you can offer.
Taking Action will show that you are a Positive Character
You can accept this and put it down to one of those things, or you could take action. It is possible to improve your credit rating and it may be that showing how you have taken control of poor finances and battled to a position of good standing will actually place you in a better light. There is definitely a lot to be said for learning from experiences and if you can show that you have made mistakes but battled through to a better financial position, you may be exactly the sort of candidate a business is looking to employ.
This is why the use of guarantor loans can help you to develop your career plan. If you have a poor credit rating, you will find that a guarantor loan is likely to be your best bet with respect to finances. This will help you to obtain finance in the present day, but it will also give you the chance to show that you are responsible.
By paying off the loan on a monthly basis, on time, you will show that you are responsible and taking steps to improve your finances. This may be just the thing you need to indicate you are worthy of a role with a finance firm.
Andrew Reilly is a freelance writer with a focus on news stories and consumer interest articles. He has been writing professionally for 9 years but has been writing for as long as he can care to remember. When Andrew isn’t sat behind a laptop or researching a story, he will be found watching a gig or a game of football.