Can a bad credit score be a deal-breaker for employers?
(Is that even legal…?)
Well, certain jobs in South Africa do conduct credit checks on potential employees. So, it’s a fair question.
Why else would they do it?
Let’s explore how credit checks can [and cannot] affect your next job..
Can you be denied a job because of bad credit in South Africa?
Yes, certain jobs may deny applicants because of bad credit. This generally applies to positions involving financial management, high levels of trust, or security. Employers can legally conduct credit checks with consent from job-seekers. The National Credit Act allows it in specific conditions.
To adhere to the National Credit Act and South African employment laws, employers must get consent before conducting a credit check.
Now, remember, a bad credit score doesn’t necessarily lead to job rejection. Employers assess whether the credit history is relevant to the job.
- Applies to: roles involving the handling of finances or sensitive data (where poor credit may raise concerns.)
- Doesn’t apply to: roles involving manual labour, creative work, or non-sensitive positions.
Example:
A bank hiring for a loan officer role may run a credit check, as the position involves assessing the financial stability of clients. In this case, a poor credit history may signal potential risk, leading the employer to question whether the applicant can handle financial responsibilities.
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How do credit checks for employment work?
In South Africa, employers conduct credit checks to assess an applicant’s financial background, but only with prior consent. Typically, applicants will consent to a credit check when applying for the job. This allows employers to request credit record data from credit bureaus to assess each candidate.
Not all employers ask for consent to conduct a credit check, because not all employers conduct credit checks. Only companies hiring for roles where financial responsibility or access to sensitive data is essential.
Here are the laws that come into play…
Relevant laws
The National Credit Act (NCA): regulates credit information and ensures that credit checks are conducted with proper consent and when relevant to the job.
The Employment Equity Act: also protects against unfair discrimination in hiring, meaning employers cannot reject applicants solely based on a bad credit score without proper justification.
This transparency ensures credit checks are only used when necessary.
These regulations protect job seekers from being unfairly treated due to their financial past.
What credit score could prevent you from getting a job?
There is no fixed credit score that automatically leads to job rejection. However, scores below 600 may raise concerns for employers hiring for financial or high-trust roles. Beyond the number, employers consider the context, such as the type of listings. For example, defaults may not be as concerning insolvency.
Example:
An employer hiring for a financial advisor role might worry if an applicant’s score is under 600 due to unpaid debts. However, if the debts are settled and there’s evidence of improved financial habits, the applicant may still be considered.
A lower credit score doesn’t mean automatic rejection—it’s not just the number but the story behind it that matters.
⭐ Related content: What is a good credit score in South Africa?
We help thousands of South Africans reduce monthly debt costs, protect their assets, and stay out of court—find out what we can do for you.
Jobs that don’t check credit in South Africa
Not all jobs require credit checks. Roles that don’t involve financial oversight or sensitive information rarely request credit reports. In such positions, credit scores typically have little impact on employment prospects.
Examples of jobs that generally don’t require credit checks include:
- Retail positions
- Hospitality roles (e.g., waitstaff, bartenders)
- Customer service representatives
- Administrative assistants
- Skilled trades (e.g., plumbers, electricians)
- Warehouse and logistics workers
Jobs like these provide opportunities without worrying about credit checks.
⭐Related content:
How to improve credit for employment
If a credit score is limiting job opportunities, several steps can improve the situation:
- Pay bills on time: Regular, on-time bill payments—including utilities and loans—help raise credit scores.
- Reduce debt: Focus on paying off outstanding debts or negotiating manageable payment plans with creditors.
- Monitor credit reports: Use services like My Score Hero or My Credit Check to check credit reports regularly for errors.
- Dispute incorrect information: If inaccuracies are found on the credit report, it’s possible to dispute and request corrections.
Consider these steps a financial clean-up, making it easier to boost credit scores over time.
In summary
Bad credit doesn’t have to hold you back from finding a job…
Many positions don’t require credit checks, and even if they do, improving your credit is within your control.
Stay proactive, work on your financial habits, take care of your outstanding debt, and you’ll get there.
If you want to talk to someone about managing your debt, we can help. Try our online assessment at My Debt Hero to see if you qualify to reduce your debt.
