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8 Freaky Ways That Student Loans Can Get You Fired

Shilpa was over the moon when she got admission in a premier institute of technology. She dropped to the ground when she learnt that the fees (running into lakhs) had to be deposited within days or she risked losing her seat to the next best candidate. With her dad’s humble earnings, she had only one option left – a student loan.

Flash forward, a few years later. While that loan was able to ditch her out in the nick of time, she now struggled to deal with it. The least she wanted was the loan to go away and never raise its ugly hood again.

Student loans can easily go from ‘being the boon’ to ‘being the bane’. As unlikely as it might sound, companies are checking credit reports of employees as part of t heir background analysis. People have been fired for having poor scores. Here are some ways by which your higher education Loan can make you quit your job:

  1. Outstanding debts cause distractions – While having a debt could motivate some people to work harder so that they can pay it off, for others it could affect their ability to concentrate on work. Having reminders being sent every now and then on your due payments could constantly remind you off your outstanding debts causing you to worry about them, even at work. This might push your employer to take the step of “cutting you loose”.
  1. Not fit for cash handling – Supposing you have debts languishing on your credit report and you handle cash for the company. When your employer learns of your personal financial battle, you might be considered unfit for dealing directly with cash. Under such circumstances, if something is amiss, your employer would be quick to suspect you. In their eyes, you have enough reasons to mess with company’s cash and they cannot allow it.
  1. Working for the lender – You took a loan from SBI to fund your MBA for 3 years at 9% rate of interest. You have now landed a job with SBI itself. Believe it or not, in principle, you are causing a loss to the company. At a time when you should be repaying to the bank, the bank is actually paying a salary to you. Even if you use that same salary to repay your loan, it is not bringing additional funds into the business. This can be adequate reason for the company to fire you.
  1. Collection agents pay visit – When a bank is unable to retrieve its money, collection agents are sent to pay the borrower a visit. They may not necessarily cause a ruckus at your workplace but they can bring embarrassment to you and the company, especially if you are the face of a company or deal with clients directly.
  1. Bound by contract to maintain a good score – For some companies it is a prestige issue if their employees do not maintain a “good” credit score. It might have been written in your contract. If you fail to maintain that score, you might be shown the door.
  2. Asking for advance – Your employer is anxious that you will be asking for advances on your salary and he will have to bail you out of your current debt situation. Your employer does not want to be dragged into your personal financial battles and lets you go.
  1. Unreliable – A person who is not able to keep financial commitments is considered as untrustworthy. You are viewed as someone who might quit the job at the drop of a hat if a better salary came along. No company wants to work with someone who makes the employer uncomfortable about being a stable employee.
  1. Casual Attitude – Your score speaks of your financial character. Inspite of being in a job why are you not able to meet your obligations? Are you unorganised, careless and perhaps not conscientious enough? Either ways, the company is not interested in such a person.

Before We Sign Off

A credit report is meant to display a person’s credibility. There is quite a bit of information which the Employer draws from a credit report. Items like overdue debts make a wrong impression on employers and they begin to doubt the employee’s integrity. No company wants to hire someone with a blemished credit record.

Don’t struggle under the weight of hefty student loans. Make it a priority to manage your funds well and streamline your repayments. Don’t forget, those who pay their education loans do struggle to pay for their rents, grocery and other bills. But the sacrifice is made today in the interest of a better future.

Whether your employer enquired into your credit report or your lender sent them a mail, make sure your score isn’t the reason you get fired today.

The post 8 Freaky Ways That Student Loans Can Get You Fired appeared first on Credit Sudhaar Blog.

This post first appeared on Credit Sudhaar Blog - Tips To Improve Your Credit, please read the originial post: here

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8 Freaky Ways That Student Loans Can Get You Fired


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