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When a new job applicant thinks about the many barriers to getting through to an employer, he or she may not rank their credit score very high on the list. However, new trends show that employers are starting to use credit monitoring as a human resources tool and even as a factor in hiring. That’s right, in addition to the old standards like skills, actual job experience and references, a person’s credit history now adds into the mix as a potential disqualifier for a range of job positions. In fact, news outlets like MSN Money cite a recent study by the Society for Human Resources Management where researchers found that nearly 35% of companies polled have pulled the credit report of an employee.

Why do companies look at employees credit ratings? Sometimes, according to human resources experts, the credit report is used to guard against mistaken identity. A routine credit report verifies the Social Security number of the employee and provides handy documentation for the personnel file. But other times, a low credit score factors into the hiring process as a significant business risk.

Government workers are one group who may need to look over their shoulder in terms of what’s on their credit reports. In government jobs, departments sometimes use credit tracking to determine whether an employee would be more susceptible to shady financial behavior because of a compromised personal finance background. Another area where companies may require good credit for workers is in the financial field, where employers may want their representatives to set a good example for clients, where the job may deal primarily with credit counseling or other financial transactions. After all, financial companies want employees at any level to be knowledgeable about credit, and someone advising customers who has a terrible credit history is seen as a potential liability to be avoided.

National governments set rules about how businesses can hire based on finances, and there are some provisions for individuals who find that bad credit is putting a strain on their job search. Companies need written permission to request a credit report so this gives potential and current employees a heads up that their credit may be under review. It’s clear that a bad credit history can be a black mark on someone’s personal record. There is an increasingly greater stigma applied to a sub-par credit score, both in the world of borrowing, where credit risk is crucial to financial transactions and now in the job world, where employers want only the best on their payroll.

For a job applicant, the bottom line is that your credit rating can harm you, especially if you don’t practice credit tracking or credit monitoring. To some job seekers, this is unfair, but on the other hand, the review of credit scores by employers seems to follow a bigger pattern, where consumer credit scores affect everyday life. Whether it’s small purchases like cell phone contracts, or bigger financial commitments like mortgages, companies routinely pull a customer’s credit report and use the information to determine what deals or offers the applicant is eligible for. The same goes for employers. If they are considering several candidates for a position, the employer is more likely to choose the candidate with a high credit score over another with a lower one. The candidate with the higher credit score is more apt to be more responsible and trustworthy. The credit score is as a gauge of character.

Given the economy, the increasing lack of job stability, a job applicant with a low credit score is wise to invest in full-service credit counseling. Educating oneself about credit management and proactively seeking credit counseling will lead to a higher credit rating. Credit monitoring also protects against the growing threat of identity theft or credit fraud, where someone with your personal financial information can take your name and rack up debt, causing massive problems that take years of headaches to resolve.

Whether or not you are currently seeking employment or know that you will be in the near future, it is fiscally responsible to be proactive in the management of your credit rating. Research full-service credit counseling companies and choose a reputable company with a wide range of services to assist you in your credit education. Take advantage of its credit monitoring and debt counseling, if necessary. Safeguard your assets, your investments and your name. As the old adage goes, its better to be safe than sorry.

Scott Peckford and Debt Monkey advocate regularly checking your credit report to help maintain a healthy credit score.

Tags: credit counseling, credit monitoring, credit rating, credit report, credit reports, credit score, credit tracking, Finance, Finances / Loans / Mortgages, full-service credit counseling