Intelligent and savvy individuals may be tempted by the promising rewards offered via a career in the finance industry. With seemingly limitless growth and the high-octane nature of the industry, it is no surprise that many risk-takers find their way into the profession in one form of another.
As with any group of human beings, there are several common and documented character flaws among those who choose this line of work. One specific issue – namely, a poor credit score – can often be more influential in harming overall career prospects than many others.
Why does a poor credit score impact financial industry employment prospects so negatively? Continue reading to find out more.
Increased Theft Risk
Many financial institutions understand that the world of finance can be a very tempting profession for some. From major hedge fund managers to bank tellers, there are many points at which the handling of large sums of money can tempt people who are in less than secure financial situations.
As such, many financial HR departments view a poor credit score as a potential liability in this department – simple risk management. If it is believed that the prospective hire is in over their heads in debt or otherwise stressed to pay his or her bills on time, then providing the person with a job in which they are responsible for handing finances is considered carefully. As such, this might impact hiring prospects substantially.
In many respects, a financial services company will judge personal financial success or failure as a metric in part of how well said person can manage the money of others. After all… “if you can’t manage your own money, then how can you manage other people’s money?”. Despite this concept not being entirely accurate, it is a metric that many businesses – both inside and outside the financial services sector – use in judging job applicants.
Many top-notch financial institutions have morality clauses for their employees that govern how an employee can act in his or her personal life. While most personal financial decisions are not subject to this, the same overall rule applies in assessing a financial situation – a potential slip-up or flaw could impact the reputation of a firm or business.
No professional agency wants to have its own reputation subjected to criticism due to important employees within the company having black marks on their credit reports. As such, it is often easier to simply overlook applications and resumes from employees who have poor credit scores.
Many financial institutions merely consider a credit score to be an extenuation of a person’s character. A poor credit score may reflect upon a person as having a poor character, especially within the confines of financial services (an industry in which one’s ability to manage money determines their overall value). As such, even small mistakes in personal financial decisions can weigh heavily upon employer decisions to hire or pass.