How Your Credit Report Affects Your Ability to Get a Job

Posted by: Allie P. | Dec 26,2007

More and more often, companies use credit reports to run background checks on prospective employees. In the old days, companies used to check references before they’d consider hiring someone. These days, there are independent companies who do thorough background checks for employers, including reviewing credit histories.

 

If you have problems with your credit report, you may not be able to get the job you want. Although credit reports are especially scrutinized by financial services and retail companies, other types of companies use credit reports too. What you need to know about your credit report when you’re looking for a job:

 

• I looked at companies that provide employers with background checks and found that they don’t recommend that hiring companies use credit scores as a factor in their background checks. The typical recruiter won’t have a lot of experience interpreting credit scores, so the number is meaningless.
• Your credit report can’t be run without your permission, and only the basics are included. You have to give your permission for a company to run your credit report when you are looking for a job. The credit reports that prospective employers run don’t include your personal financial information like account numbers or your date of birth.
• If you don’t get the job you are looking for based on information found in your credit report, the employer is supposed to notify you. And, since this qualifies as an adverse action against you, you’re entitled to a copy of your free credit report if it’s the reason you don’t get the job.

 

Order your free credit report before you start looking for a job so you can see what employers see in their background checks. It’s safe, easy to do, and provides you with a bird’s eye view of your credit history. It also gives you the opportunity to correct any errors on your credit report before it’s viewed by prospective employers. 

 

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