Denied employment due to credit card debt?
May 26, 2021 5:06 PM   Subscribe

Can I be denied employment due to a high credit card balance even with good credit and a perfect payment record?

I recently was offered a position at a new company, and they told me they would complete a consumer report prior to me beginning the position. I have a good credit score and perfect payment record, but I have a high balance on one credit card. I am concerned that I may be denied employment due to this financial circumstance. Have you heard of someone being denied due to having a high credit card balance?
posted by orangesky4 to Work & Money (10 answers total)
 
IANAL, but probably Yes. I think they look at credit score only. I find the practice incredibly invasive and woill not apply.
posted by theora55 at 5:09 PM on May 26, 2021 [3 favorites]


It probably depends on the type of job. If you want to work for the government they need to know if you can be bribed. If you want to work at a bank or accounting firm, they care how you manage your own money. If the field is one where you're supposed to have some kind of specific character to do it, then it may matter more in that sense. (not that I agree carrying debt is a moral issue)
posted by crunchy potato at 5:14 PM on May 26, 2021 [5 favorites]


IME, when I've seen this done, what they're looking for is stuff like your car being repossessed -- things that would be disruptive to your work life.
posted by fingersandtoes at 5:29 PM on May 26, 2021 [4 favorites]


I had to do a full background check including fingerprints when I took a job at a Big Bank, even though the role I was hired for had no access to accounts or customers or money. My terrible credit score at the time did not prevent me from getting the job. I think the role you are being considered for has alot to do with how closely they scrutinize the results. But it's invasive AF.
posted by cabingirl at 5:31 PM on May 26, 2021 [2 favorites]


Also: high balance on one credit card is nothing, credit speaking.
posted by cabingirl at 5:32 PM on May 26, 2021 [9 favorites]


(I'm assuming you are in the USA, lacking any other information)

In addition to banks as identified by others, jobs that require government security clearances will frequently do credit checks as a quick way to identify people who may have excessive debt that could negatively impact chances to obtain a security clearance.
posted by saeculorum at 5:37 PM on May 26, 2021


Unlikely unless you're talking about some kind of very high-level, high-trust, specialized job. If it's the kind of job where there are a bunch of other people in similar roles and you do relatively standard stuff that people at other companies also do, then almost certainly not.

A good friend works in the financial industry and has told me that merely *having* debt isn't a concern for his position; it's defaulting or trying to get your debt written off. If you have a high credit score and a perfect payment history, it is unlikely to be of concern.
posted by Frowner at 5:38 PM on May 26, 2021 [4 favorites]


If you're in the US, sure, you probably *can* be denied employment for most any reason other than being part of a protected class of person. But I suspect you'd already know if you were in one of the specialized careers where it's likely, like the ones others have mentioned. For your average job that's not specifically reliant on you being an excellent and unbribe-able money manager, you should not lose sleep over this.
posted by Stacey at 5:49 PM on May 26, 2021


I work at a bank in a non-financial job and I just got the regular background check. One way this can work is that if your credit meets a certain threshold you’re an automatic in, and below that they’d want to know why. Different organizations will have different tolerances, but if you have decent credit I wouldn’t spend time worrying about it.

I don’t know what the threshold is for decent credit, but probably between 610 and 660? I’m wildly guessing here.
posted by chesty_a_arthur at 5:56 AM on May 27, 2021


Have you heard of someone being denied due to having a high credit card balance?
I have not, in over 12 years of regularly being a reference for people seeking various kinds of background check/security clearance. I'm sure it happens, but a massive chunk of Americans are in far worse debt than you appear to be - unless you've declared bankruptcy or defaulted on a mortgage, I wouldn't worry about it.
posted by aspersioncast at 1:00 PM on May 27, 2021


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