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Bad credit report from overwhelming debt hurts employability

In a still struggling economy it can be a challenge for many people to find solid employment due to the large number of businesses shutting their doors. This in turn decreases the need to fill employment positions in the marketplace, which makes it harder for job seekers in Texas and elsewhere to find work. However, another problem which could make it more difficult for job seekers to find employment is a bad credit report caused by overwhelming debt owed to credit card companies.

This is becoming more of an issue as of late because regulators are disallowing companies to use various methods to screen job applicants. For example, authorities are making it more difficult for employers to use criminal background checks. Therefore, many employers are turning more towards credit checks in order to determine the suitability of a job applicant. These types of checks are commonly used and completely legal.

Almost half of employers utilize credit checks in order to screen job applicants, reported a 2012 survey. This has resulted in one in every seven job candidates being turned down for employment positions as a result of a bad credit report. Experts believe that employers hiring for high-level executive positions are more likely to use credit reports in the hiring process, since these jobs require taking on financial responsibilities.

If one is having problems obtaining his or her desired job in Texas or elsewhere due to a negative credit report caused by overwhelming debt, it may be a good idea to responsibly confront the underlying financial issues. This is possible if most of the debt is owed to credit card companies, since this type of debt is considered unsecured debt. A Chapter 7 bankruptcy is specifically designed to discharge these types of debts in most circumstances.

Source: Forbes, "This Week In Credit Card News: Young Adults Ditch Cards, Effects Of Bad Credit Report," Bill Hardekopf, June 24, 2013

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