Credit Check For New Job

[MonaTheMoaner]

Hi all, I had a job interview today for a paralegal job in the estates department of a fantastic law firm. I'm fairly confident I'll be offered the job but I was told the offer would be subject to a credit check, DBS check and references.

However, my credit is very poor. Literally on my file it says "50 points away from poor". I have settled numerous debts and most are historic but I do have nine defaults from a period of illness and unemployment. I'm embarrassed about this and horrified, obviously and I'm scared it'll lose me this job.

I have no CCJs, IVAs or bankruptcies though but I cannot begin to settle outstanding debts before the credit check happens in time for it to update on my file. Do employers only look for CCJs or bankruptcies or will my 508 (!!!) score worry them?

Thank you.

This is odd OP. I just came on to ask the exact same question! My credit is showing at just under 500. I have missed/caught up with payments in the past. We got behind a little when Dp was made redundant a few years back. My report has come up with 'Very Poor!'

I have just been provisionally offered a new job, dealing with a huge portfolio of money so am hoping to offer an explanation email alongside the report when they receive it....and hope they don't take the offer of the table! I have never been fraudulent, nor bankrupt. So hoping this will go in my favour!

To the best of my knowledge (and please guys, correct me if I'm wrong), potential employers won't see your actual credit score when a credit check is run on you. What they will see is any CCJs and any unsettled defaults.

Obviously a CCJ is bad news, and some employers aren't permitted by company policy to employ someone with a CCJ. Unsettled defaults is a more grey area. The tolerance for this varies from company to company, and can depend on the industry too. For example, I know that one of big name UK banks won't accept anyone who has an unsettled default of £500 or more on their credit record. I know of other banks who are more open to unsettled defaults as long as clear evidence is provided that the default is being paid off on a regular basis. If you have settled defaults on your credit history, this is usually okay as long as you can provide a sensible explanation (e.g. relationship breakdown, etc).

The unsettled defaults are the ones that have me concerned. Many defaults are now paid off and closed (and show as defaulted but closed) and most are historic debts but there are issues with mobile phone companies that ex-DP took out in my name and failed to pay that are showing up as unpaid defaults. I have disputed that I owe them the money due to this but they're still open.

I'm worried mistakes I made before I met DH and became more stable and reliable may cost me a fantastic entry level job that could really set my career in motion.

How big is the default total? Is there more than one? (sounds like it). Have you got evidence that it's in dispute and/or what steps you're taking to resolve it? You need to get this sorted out as this will keep impacting you until it is.

If you get the job offer, the best approach is to let them know that you're worried about the credit check and tell them why. There is less chance that they'll be sympathetic if you say nothing and they only find out when the credit check comes back.

What they will see is any CCJs and any unsettled defaults

What they will see is any CCJs, bankruptcies, voluntary arrangements, decrees and administration orders. You can see a sample of the kind of thing they will get here.

If this shows problems it is up to the individual employer whether that bars you from the job. Your best approach is as the last poster says - tell them what they will see on the credit check before they get it. They are more likely to be sympathetic if you are open about the issues.

I would be guarded about how much you tell a future employer about your past, as that may well stay on your HR record in the future. You want to have as clean a record as you can, whilst still providing an explanation that satisfies any regulatory requirements as far as possible.

For example picking up on your point:

there are issues with mobile phone companies that ex-DP took out in my name and failed to pay that are showing up as unpaid defaults

I would state that "a former partner amassed certain debts in my name without my approval and these will show on my credit history even though the debts have now been fully cleared"

Leave it vague and unspecific, don't give details about what products or services were involved, you want to provide just enough that they see it wasn't your fault. And don't whatever you do admit to your own mistakes at this stage. It will colour their view of you - as you've learned your lesson and will have to keep thing in check in future, that's the key thing.

I hope it work out.