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Can You Get a Job in South Africa with a Bad Credit Record?

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A bad credit record in South Africa does not only affect your chances of getting a loan; sometimes it may affect your chances of getting a job you were qualified for. Even though not all employers check their potential employees for bad credit, for some who do, it might reflect negatively on your credibility.

Can You Lose a Job Offer Because of Bad Credit?

Yes, in some industries in South Africa, your bad credit record can cost you your chances of getting a job even though you scored every other requirement. Usually roles that involve working with finances or access to the organization’s funds conduct credit checks on their potential hires. If your credit record is bad, then you are considered a high risk to employ. 

You are likely to have your bad credit record overlooked if you work for roles like customer service or manual labour since they hardly check as compared to financial or management roles.

Tip: Being honest about your credit record may work in your favor.

In South Africa, What is the Minimum Credit Score for a Job?

There is no set minimum credit score in South Africa, but there are set minimum credit scores set by employers for specific jobs, looking at the impact of the responsibilities that you will have in the role. Some jobs may require a clean credit record, especially roles in anything that deals with finances.

A credit score above 600 is considered good, but there are other factors that may disqualify you, like credit judgements, defaults, and unpaid debts.

How Long Does Bad Credit Stay on Your Name in South Africa?

  • Credit defaults stay on your name for two years after final settlement.
  • Bad credit judgements remain for 5 years until the debt is paid
  • A sequestration can last for 10 years if not resolved on time.

Employers may be lenient on you during credit checks if your bad credit is resolved and marked as settled.

Will My Credit Score Go Up if I Get a Job?

No, but getting a reliable income every month may help you in:

  1. Settling outstanding debts and defaults.
  2. Paying on time and not having new defaults.
  3. Prove financial stability, which will reflect positively over time on your credit score

Which Industries Check Credit Scores in South Africa?

The Following Industries Usually Check Credit Scores

  1. Banking and Finance
    • Roles That Check Credit Scores: Bank tellers, financial advisors, and accountants.
    • Why It’s Important: The responsibilities of these roles involve managing sensitive financial data and large sums of money.
  2. Insurance
    • Roles That Check Credit Scores: Claims processors and sales agents.
    • Why It’s Important: The roles involve handling policies and large payouts, making financial trust the qualifier for the job.
  3. Legal Firms
    • Roles That Check Credit Scores: Attorneys and paralegals.
    • Why It’s Important: Someone who can be trusted financially is needed since the person must have high ethical and financial standards.
  4. Government Jobs
    • Roles That Check Credit Scores: procurement officers, senior administrators.
    • Why It’s Important: Financial responsibility is a standard requirement to avoid risks like fraud.
  5. Senior Management
    • Roles That Check Credit Scores: CEOs, CFOs, and directors.
    • Why It’s Important: A clean financial record and financial trust are crucial for high-level positions.

What Can You Do When You’re Unemployed and Have a Bad Credit Score?

Consider the following steps to improve your bad credit score while unemployed in South Africa:

1. Make a Plan To Pay Outstanding Debts

  • Have a sit-down with creditors to come up with a payment plan that can work for you while you are unemployed
  • Seek financial counselling on debt services as a smart way to consolidate your debts.

2. Find Alternative Employment Opportunities

While still trying to fix your bad credit score, opt for roles that do not require credit checks, like customer service, hospitality, and retail, which can help you pay outstanding debts.

3. Try Freelancing or Gig Work

Remote jobs and freelancing work will earn you a reasonable income without going through the troubles of a difficult hiring process like credit checks. 

4. Improve Your Financial Literacy

In your free time, consider enrolling in online courses that will shed light on budgeting and strategies of repaying your debts without leaving your pocket empty.

5. Maintain a Positive Outlook

Having a bad credit record shouldn’t wipe your determination on getting your life back; keep applying for jobs that do not require credit checks and network more.

Conclusion

Having a bad credit record in South Africa does not mean you can’t find employment; focus more on the jobs that do not require credit checks. This job can help you improve your credit record and help you pay your outstanding debts until you are up to date with your finances. Make sure to join networking groups, showcase your skills to potential hires, and keep a positive attitude. With the right discipline and attitude, you can get out of a bad credit record and find your dream job in South Africa.

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