Non-financial companies have increasingly begun to connect to credit bureaus. For them, a credit history is another opportunity to carefully check the applicant when applying for a job. According to experts, there are already the first job refusals due to bad credit history.
Today, a citizen's credit history is just a storehouse of useful information, because it already includes not only information about debts on loans, but also data on debts for utilities, communication services, and maintenance obligations. If a citizen went through the bankruptcy procedure, this is also reflected in his credit history.
Of course, a number of employers have become interested in such an important tool for checking applicants when applying for a job. They have had the right to request credit histories of citizens since 2014.
As employees of recruitment agencies note, credit histories are often checked by large companies that value their reputation when applying for a job. It is no secret that every debtor is almost relentlessly followed by collectors who allow themselves to call the debtor at work, come to the place of work, distracting both the debtor and his colleagues from work. Therefore, reputable firms prefer not to deal with debtors.
When applying for what positions do they check credit histories?
Typically, the verification of the applicant is based on the following principle. First, the company's security service requests data on debt obligations from the applicant himself. The information obtained is then compared with the information from the credit history. In principle, they may turn a blind eye to some minor debts, such as a credit card, but they will be wary if the borrower owes large amounts of money and did not pay them, bringing the case to court. It will also be a minus if the applicant hid important information from his debt biography from the security service. Such a citizen may be refused, although officially he will be given a completely different reason.
All citizens who go to work in a bank should be afraid of credit history checks. Today, almost all banks pay attention to the credit histories of their employees.
They will also increasingly check employees who deal with finances and property. It can be a financial director, an accountant, a cashier, a housekeeper, a warehouse worker and others.
Regardless of the field of activity, special attention will be paid to credit history when selecting a candidate for high positions. A top manager should not have stains in his file.
So far, they do not request credit histories from citizens working in technical specialties, employees of creative professions, service, working personnel. The civil service also does not pay attention to the credit histories of citizens, although debtors who have brought the case to court may have problems with employment.
Interestingly, some credit history facts will play in favor of applicants. For example, successfully paid without delays indicate the high discipline of the applicant, which should also be reflected in the results of his work. In addition, employers look positively at the availability of a mortgage loan. This suggests that the applicant is interested in long-term cooperation, he definitely will not change jobs every 3 months.
Share an interesting article, please your friendsget a little richer
What to do if you are not hired because of loans? Reading time 8 minutes. Who has access to credit history? The fight against debtors is growing and getting tougher. The Government of the Russian Federation is making every effort to reduce the number of debtors. Changes to the law "On credit histories" have come into force, which allow employers to check the credit histories of applicants. According to the changes, not only banking organizations, but also microfinance organizations submit information to credit bureaus. Previously, only banks could get access to a credit history, now employers will be able to get certificates of citizens' solvency. With this opportunity, many large companies will not want to hire debtors. They are interested in hiring responsible and disciplined workers who are completely devoted to work. How the debtor will work, because his head is full of problems with debt obligations. The circle is closed. To pay off the debt, the borrower must look for a job, but he will be denied due to unpaid debts. There is no urgent need to know the credit history of the employer. It can be spoiled for various reasons: downsizing, non-payment of wages on time, illness, etc. Maybe a person quit his previous job in order to find a better and higher-paid job Checking credit histories in other countries This is a normal practice, it is used in EU countries , in the United States, where such verification is carried out by most companies. Low payment discipline in the payment of loans, payment of utility or rent payments is the basis for refusing to hire. This generally characterizes the responsibility of the future employee. This practice has existed in the West for decades. Even more, if an employee has taken a loan, the monthly payments for which exceed 50% of his salary, he will be automatically fired. It is believed that the employee is not effective. What information can an employer get To obtain information, it is enough to make a request to the Credit Bureau. According to the law, all data can be “find out” only with the written consent of the employee. But the information part, which contains information about the provision / refusal to provide a loan and about violations of repayment, can be obtained. It is not clear how the insolvency of an employee can affect the employer? The opinion of experts on this matter is different. Some are inclined to believe that this will lead to a violation of the rights of workers, while others consider the consequences of the innovation not so depressing. Not all employers will check the credit history of job applicants, but most likely, large firms. It's no secret that most of them even now find out from their potential employee how many loans he has and how a citizen repays them. This is especially true for those people who apply for a job in the financial industry. Working with money requires only positive qualities. The main one is the ability to manage money, not get into debt and clearly plan your budget. Old troubled debt is a huge disadvantage for the job applicant, and of course it will arouse the suspicion of the employer. Is it legal to turn down a job because of bad credit? There is no such ground for refusing employment. According to the Constitution, the state guarantees equality of rights and freedoms, regardless of gender, race, property and official status, etc. The Constitution guarantees men and women equal rights and freedoms, as well as equal opportunities for realization. Everyone has the right to work, to remuneration for work without any discrimination not lower than the minimum wage for work established by federal laws. Therefore, if you are not hired because of outstanding or delinquent loans, ask for a written waiver. The refusal can be challenged in court. Or file a complaint with the labor inspectorate. Is it possible to find something good if you were not hired due to bad credit Yes, absolutely. A person gains valuable experience on how to live within their means. He will be forced to sell what he did not earn, but bought for credit money. And most importantly, life will force you to find another job or start your own business. May you be lucky!
- What to do if you are not hired because of loans?
- Who has access to credit history
- Checking credit histories in other countries
- What information can an employer get?
- It is not clear how the insolvency of an employee can affect the employer?
- Is it legal to turn down a job due to bad credit?
- Is it possible to find something good if you were not hired due to bad credit history
What to do if you are not hired because of loans?
I want to get a job, but they do not take, referring to bad credit history. Is it legal?
Who has access to credit history
The fight against debtors is growing and getting tougher. The Government of the Russian Federation is making every effort to reduce the number of debtors.
Changes to the law "On credit histories" have come into force, which allow employers to check the credit histories of applicants.
According to the changes, not only banking organizations submit information to the credit bureaus, but also microfinance. Previously, only banks could get access to a credit history, now employers will be able to get certificates of citizens' solvency.
With this opportunity, many large companies will not want to hire debtors. They are interested in hiring responsible and disciplined workers who are completely devoted to work. How the debtor will work, because his head is full of problems with debt obligations.
The circle is closed. To pay off the debt, the borrower must look for a job, but he will be denied due to unpaid debts.
There is no urgent need to know the credit history of the employer. It can be spoiled for various reasons: downsizing, non-payment of wages on time, illness, etc. Maybe a person quit his previous job in order to find a better and higher paying job
Checking credit histories in other countries
This is a normal practice, it is used in the EU countries, in the USA, where such verification is carried out by most companies. Low payment discipline in the payment of loans, payment of utility or rent payments is the basis for refusing to hire. This generally characterizes the responsibility of the future employee.
This practice has existed in the West for decades. Even more, if an employee has taken a loan, the monthly payments for which exceed 50% of his salary, he will be automatically fired. It is believed that the employee is not effective.
What information can an employer get?
To obtain information, it is enough to make a request to the Credit Bureau. According to the law, all data can be “find out” only with the written consent of the employee. But the information part, which contains information about the provision / refusal to provide a loan and about violations of repayment, can be obtained.
It is not clear how the insolvency of an employee can affect the employer?
The opinion of experts on this matter is different. Some are inclined to believe that this will lead to a violation of the rights of workers, while others consider the consequences of the innovation not so depressing.
Not all employers will check the credit history of job applicants, but most likely, large firms. It's no secret that most of them even now learn from their potential employee, with how many loans does he have and how does a citizen repay them.
This is especially true for those people who apply for a job in the financial industry. Working with money requires only positive qualities. The main one is the ability to manage money, not get into debt and clearly plan your budget. Old troubled debt is a huge disadvantage for the job applicant, and of course it will arouse the suspicion of the employer.
What is a credit history? How do credit bureaus work?
Is it legal to turn down a job due to bad credit?
There is no such ground for refusing employment.
According to the Constitution, the state guarantees equality of rights and freedoms, regardless of gender, race, property and official status, etc.
The Constitution guarantees men and women equal rights and freedoms, as well as equal opportunities for realization. Everyone has the right to work, to remuneration for work without any discrimination not lower than the minimum wage for work established by federal laws.
Therefore, if you are not hired because of outstanding or delinquent loans, ask for a written waiver. The refusal can be challenged in court. Or file a complaint with the labor inspectorate.
Is it possible to find something good if you were not hired due to bad credit history
Yes, definitely. The person gains valuable experiencelive within your means. He will be forced to sell what he did not earn, but bought for credit money. And most importantly - life will force you to find another job or start your own business.
May you be lucky!
At the moment, the media pays special attention to the problem of employment of citizens and frequent checks by employers of information from the applicant's credit history to the place. Not infrequently, such a question as the question is raised: "What kind of data will be available to employers?".
In the relevant law "On credit histories" you can find answers to all your questions. Any organization can obtain data from the borrower's credit history, in accordance with the above regulatory document, by making a specific request. Such a report will contain only general information. The category of classified information that cannot be disclosed only with the permission of the borrower whose credit history is being studied includes personal information. Therefore, you must always remember that when signing a loan agreement or a small loan, in the future, access to certain information is provided to a wide range of people. The part of the credit history that can be recognized by organizations upon request is determined by the regulator:
- Information is available on all ever issued credit obligations of the borrower.
- Information about the absence for the last 120 days of delays in 2 payments in the planned payment schedule.
- If the issuance of funds on credit was refused, a negative decision is indicated, the reasons for the refusal may also be indicated.
You can correct the situation online
In the event that a citizen is looking for a job and is worried about being denied a vacancy due to a bad credit rating, you need to act immediately! It is easy and most importantly, in a short time, you can fix a damaged CI using an online service that issues loans online to a card. Many MFIs have an operational scoring system that completely excludes the participation of the human factor. Simply put, your application will be reviewed automatically. Such small financial institutions lend money even with a negative credit history. The most demanded organizations in this segment today are microfinance organizations, and the company is incredibly fast lending.
It should be noted that the refusal of a loan in the banking structure is often associated with the human factor. At the same time, without even having debts and delinquencies on credit obligations, information about refusals to extradite the CI is negatively affected.
MFI online services make a decision according to the mathematical evaluation model. This characteristic parameter is based only on statistical data. The system analyzes more than one and a half thousand different indicators, as a result, decisions are made in a minute. You can get a loan on the card absolutely at any time. This means that even on world winter days, such as weekends and holidays, as well as during off-peak hours - around the clock you will always have the opportunity to use a fast lending service.
Advice. Since any attempts to get a cash loan are somehow reflected in the credit history, you need to approach the whole process of obtaining money in debt competently. stories. Do not forget that more and more leaders of large organizations are turning to the national credit bureau in order to study in more detail a potential applicant for a good position.
According to a recent survey by the National Financial Research Agency (NAFI), the majority of Russian consumers prefer not to spend too much time choosing a bank and loan product. They are not interested in competing offers from banks, and the loan itself is often issued directly at retail outlets where the family comes to buy a TV or refrigerator, or at real estate companies where they buy real estate. According to the All-Russian Center for the Study of Public Opinion, more than half of Russians have taken loans at least once in their lives, especially people aged 35 to 44 do this.
With such a popular love for loans, not every future borrower thinks that his solvency is unstable and directly depends on the availability of work, health and many other factors. Failure to repay a loan threatens with serious sanctions from banks, including a damaged credit history, fixed fines, unpleasant communication with representatives of collection agencies and exhausting courts.
But such measures are not enough for banks - from July 1, 2014, changes to the law on credit histories came into force, according to which employers have the full right to check the credit history of applicants and, based on the information received, make a decision on hiring. If you have taken loans, deep in debt, while hiding from payments, it means that you cannot be a worthy worker. Therefore, why are you a company?
I wholeheartedly support the new credit disclosure law. And don't accuse me of bias. In my almost fifteen years of work experience, I have repeatedly convinced myself that those who never have enough money for anything work the worst of all, but at the same time they regularly tell colleagues about home appliances bought on credit. I still understand - to buy an apartment or a car on credit, but people manage to become a borrower from a bank even to buy hair dryers. These workers are lax, irresponsible and have the longest tea and smoking breaks. So it is better not to hire such people. Olga Timakina, head of personnel department
Credit history is like a blood type
Not all Russian borrowers are aware that their credit history contains information about all their loans, already paid and current. It is impossible to change a credit history without a good reason, it can only be replenished. In Europe and America, almost everyone knows about this situation, including for the reason that the practice of checking credit history by an employer has been used there for a long time. It surprises no one there that low payment discipline in paying both bank loans and utility bills is a serious reason for refusing to hire.
It is still hard to imagine that a Russian company will refuse to hire a valuable specialist because of overdue bills for electricity and water supply, but, as they say, “it’s not over yet”, and in the future we will definitely come to this.
Mistakes in credit reports
As you know, an idea, even a brilliant one, is much easier to come up with than to implement. No matter how hard banks and credit bureaus try to store all information about a person in the most careful way, mistakes are still often found in documents.
For example, a person makes regular payments on a loan, and the credit report indicates that he is a persistent defaulter. In addition, from time to time credit history specialists make mistakes when entering information about outstanding loans that a person has never taken at all. The employer is given false information that is not always easy to disprove.
Considering that not all employers tell job seekers the reason for the refusal, very soon Russians may face a situation where specialists will be massively denied employment due to an unpaid loan, which actually does not exist.
I think that the law on providing a credit history to an employer in the near future may lead to a surge in various forms of fraud, and most of all they will affect the most vulnerable segments of the population who take loans for household items. Nowadays, it is also impossible not to take into account the fact that if a bank's license is revoked, the credit histories of citizens who took a loan from it may be damaged. In addition, the new law allows disclosure of personal data, which violates human rights and should not be allowed. Mikhail Listratov, head of one of the departments of a large investment company
Vicious circle and how not to get into it
It is logical to assume that credit history can be damaged due to a variety of reasons. But one of the most frequent - a person finds himself in debt due to a reduction and loss of work, which deprived him of the opportunity to make payments on time. In such a situation, it is not easy to get a new job, because the new employer will receive information about the unpaid debts of the applicant, who hopes to pay off loans faster. It turns out a vicious circle, from which it is not so easy to get out.
In order not to limit your circle of job searches and not be at risk of being rejected due to an overdue loan, you should try to negotiate with bank representatives about developing a new payment schedule that you can afford. You may need to provide a convincing explanation that you were previously unable to make payments due to circumstances beyond your control (health problems, job loss, salary delays).
Also make a rule for yourself - if you often use loans, do not forget to check your credit history regularly. In case of detection of errors, the bank is obliged to correct inaccuracies in the credit history as soon as possible and inform the credit bureaus about this. In the event that the bank refuses to do this for any reason, and you are sure that you are right, go to court.
I would not attach much importance to the request to present a credit history at an interview. It is clear that the absence of loans or the presence of paid loans may indicate such traits of the candidate as commitment and responsibility, but none of the managers, when hiring employees, is guided only by this. In addition, only large companies require a credit history, the rest prefer not to complicate their lives. Believe me, when applying for a job, your professional and business qualities are much more important than the information in which year you paid off the loan for your first car. Kristina Beskrylova, commercial director
In order to succeed in building a career, you need to constantly improve your financial literacy and develop the right attitude towards obligations to banks. At least that's what financial experts say. Perhaps they are worth listening to.
Loading...