The job market in today’s world is more competitive than ever. And if your potential employment is contingent on something like a background check, there’s a good chance that a prior bankruptcy might impact your ability to get that particular job.
Whatever your stance is on the amount of digging potential employers are allowed to do on job applicants, the fact is that bankruptcy filings are part of the public record, and therefore may be a factor when employers have to choose between numerous qualified applicants.
Now, the law does afford some protection against employment discrimination due to prior bankruptcy. But it is important to recognize that outside of government jobs, this may be difficult to prove or enforce in the private sector. So while you may have legal recourse, do you really want to spend the time and money to sue someone over a potential job?
With this in mind, it’s import to establish good financial habits post-bankruptcy so that if and when a potential employer runs a background or credit check, they find that your financial affairs are much improved. Here are a few tips to consider:
Evaluating Your Weaknesses
It is essential to understand that bankruptcy might have needed to be filed for specific reasons. It might have been a result of poor spending habits, the loss of a job, or other factors due to the financial crisis. By evaluating your weakness, you can help strengthen your financial future to avoid those bad habits in the future.
Assess Your Credit Score
It is possible that filing for bankruptcy will lower your credit score as well as cause certain credit accounts to appear delinquent or charged off. To help prevent these sorts of issues and allow you to gradually increase your credit score, it is essential that all of the listed credit report information is correct and current.
Build New Credit
It is important to use every effective strategy that has been proven to increase credit worthiness. This might be obtaining a credit card (if possible) that will be used only for needed expenses every month. The card should be paid off completely each month, to help establish stronger credit worthiness with lenders. This in effect will increase the credit score, making it easier to land a great paying job.
Paying Bills on Time
Over one-third of your credit score is calculated on how you pay your bills. Because of that, it is imperative that all of your bills are paid on time. This will enhance your credit score, making it easier to obtain loans and land a job.
An easy way to improve credit worthiness is to set milestones. This might include paying off certain debt, cutting back on unnecessary spending, and using effective tools to increase the credit score. Find ways to keep yourself motivated and improve your credit.
Avoid Dishonest Lenders
There are dishonest lenders that specifically target individuals that have filed bankruptcy. They will offer attractive deals in loaning debt. However, they often have exorbitant interest rates that could significantly jeopardize your financial future that you are striving hard to repair. Avoid the dishonest lenders and their hard to pass up deals. Instead, take the initiative to do everything possible to improve your credit worthiness to get you back on your financial feet.
These effective steps and tools can help you land a great paying job and avoid taking on unnecessary debt.