Job applicants are being rejected due to bad debt

Applicants failing vetting due to their financial difficulties

For many, getting a job, or getting a better job, are amongst a range of things which will help them dig their way out of financial difficulty. However, job candidates are increasingly finding that their debts are responsible for keeping them indebted. More employers than ever before, even for roles outside of financial services, are turning away candidates with poor credit records.

While those in the financial sector are most likely to be vetted in this manner, employers in many other sectors are following suit. Even the most professional positions, like Doctors and Teachers, aren’t immune from such scrutiny. In fact, it seems the opposite is true. The more responsibility you might have in the role for which you’re applying, the more likely it seems you are to have your credit history assessed as part of your application process.

It’s a vicious circle

According to the Reed Screening Database, the number of candidates rejected for a position because of their poor credit history increased by 7% during 2017. By contrast, UK household debt increased by 10%. With more and more people increasingly burdened by bad debt it seems a cruel twist that despite having the required skills and experience for a position they’ve applied for, their past mistakes or misfortunes could serve to prevent them from moving forward with their lives.

What is a bad debtor?

Unfortunately, there is no standard measure of what counts as having ‘too much debt to be employable’. Each organisation which engages in a credit record check for prospective employees is free to decide for itself whether a candidate’s finances makes them a risky bet as a member of staff. Having said that, four or more defaults in the last six years give a candidate being screened a considerably higher chance of being rejected at the vetting stage.

What can I do about bad debt on my credit record?

At Lines Henry, we deal with all manner of personal and business insolvencies. The one common factor to everything we do is that the sooner we’re involved, the sooner we can help and the more options will be available to us in order to assist you best.

It’s unlikely you’ll be completely unaware of your own financial situation. If you’ve missed payments on credit agreements or similar you can expect these to form part of your credit report. This being the very thing which future employers, insurers and myriad other service providers may use to assess your application to them. Obtaining a copy of your credit record is a straightforward process and can be applied for online at little to no cost.

We offer a free consultation, so if you’re worried that your own credit history is causing, or might cause, you difficulties, don’t hesitate to get in touch with us. Helping individuals and companies in debt is our speciality and we guarantee, the sooner you speak to us, the sooner you’ll feel better.