Can Your Credit Keep You From Promotion?

It is a common practice for employers from small to large companies to look into the background of their potential employees. They would look into their educational background and evaluate if they will be a team player based on how they performed in the seminars and interview.

However, in recent years, companies are also looking more into the background of their employees. Some companies review the employee’s or applicant’s social media profiles, online handles, and what comments they make since it shows their character outside the office. If the applicant or employee shows good character and behavior in these sites, as well as have a good background, there is a high chance they will be hired or even promoted.

In contrast, if the company finds something questionable in the applicant’s credibility or default, the applicant’s chances of getting hired are lower.

Why are they looking into one’s credit background?

Nowadays, loans are an essential part of every individual’s life from the beginning. It is an unavoidable necessity because it enables us to grow and live life as comfortable as possible. Some loans, like a personal loan from a moneylender, even permits us to make a good investment for the future.

So, how could such loans be a black mark on your work profile?

Employers do credit checks on everyone, starting from the lowest section of their company to the top. They will definitely do such checks if the person they seek to hire or promote will be in a top position. The employee’s credit history would help the employer determine if they can maintain their finances or not and make wise decisions for the company. The checkers would look into where your finances went and see the effects of your choices.

If you have a poor credit history and have lingering debts, it tells your employer that you are a poor decision-maker. Of course, there are several reasons which can justify why you required a loan that your employers will understand. However, if you do not have a reason for having a lot of credit and unpaid bills, it will show your capacity to manage, decide and lead. It will show the employers how you handle your money, and by extension, how you will handle the firm’s money if they grant you that promotion.

In terms of hiring, a poor credit history showcases that you may likely be a poor employee. You may be unable to make the right decision, do your tasks on time, and show the right commitment to the job. If you are unable to pay your debts, it also shows you do not have a driving force necessary to meet the company’s goals.

It is also crucial that your financial background is solid and good because the company you are working for needs to ensure their money is well-invested and protected. They also have to keep their reputations so if they hired someone who has a poor credit rating and has a lousy behavior, it would not look well for their company.

What can you do?

If you are indeed in a critical slump in terms of your credit history, there are methods you can do to bolster it up.

One of the most notable ways to revive one’s credit rating is by securing a personal loan from a moneylender.

Personal loans are unsecured loans, meaning you are not required to submit collateral or several documents to prove where you will use the loans. If you have a bad credit history, some moneylenders may offer personal loans for your needs.

Interest rates for unsecured loans are higher than those from secured or collateral loans. However, they are lower than the interest rates on credit cards.

Personal loans are also very flexible, allowing you to use it in whatever debt or need you may have. You also do not have to pay it immediately since personal loans are payable in less than five years as compared to credit cards where you have to pay it within a certain period so you do not have to contend to additional interest charges.

If you have a lot of debt, you can use a personal loan to get a debt consolidation loan. With this loan, you can pay off all your existing high-interest debts with a lower interest loan or combine all your debts into one large one so you can pay it easier.

Of course, since personal loans would require you to borrow money, you will need to keep up with repayments to reduce your debt. Make sure to pay on time and if you think you will be late due to an emergency, tell your moneylender immediately so it would not cause further problems for your credit rating.

Aside from using a personal loan, you may also use your credit card with a 0% interest balance transfer or a secured loan to revive your credit rating.

When you pay off your debts, including the personal loan, try to prevent accumulating additional debts. If your employer sees that you have paid your debts, you have more chances of getting that promotion. It will also enable you to get better loans in the future if you find yourself in need of money for an emergency or an unavoidable expense.


Our parents and elders would often say our decisions can make a mark in our lives for better or for worst. As a result, we must think twice before we do something we may regret in the end.

In this case, if we remain in debt and have lots of credit, it can be a big obstacle for our career because it can be used against you when the time for your promotion comes. Even if you deserve the promotion, your credit history may hold you back. To prevent this, it is important you slowly fix your credit history as you work so when the time comes, you do not have to worry about not getting your dream position.