Finding a new or better job is tough. There are plenty of hurdles, no matter what your career. But did you know that good credit can get make the difference between landing your dream job and being turned away?
That’s right, in even if you’re the perfect candidate on paper, with the right education, experience, and qualifications, bad credit could stall your career prospects.
This is the new reality of job hunting. More than half of employers use credit reports as part of their hiring process.
Your Dream Job vs Your Credit History
You might be thinking, “No one’s ever talked about my credit score during a job interview.” And you’d be right. In fact, creditor’s are not allowed to check your credit scores.
But they are allowed to review certain information from your credit reports. And they can use that information to decide whether or not to hire you.
Questions and Answers
First, let’s go over some facts and correct some common misconceptions.
Does my (current or future) employer need my permission to access my credit report?
Yes, they cannot pull your credit report without your permission.
Will it affect my credit score?
No, employer inquiries aren’t considered “hard” inquiries like those from lenders. Thus, they will not count against your credit scores.
Does the credit report my employer can see show all of my personal details?
No, employer credit reports don’t show all of the details that your copy does.
What can my employer see from my credit report?
- Your open accounts
- Your payment histories (including missed or late payments)
- Your public records (eg bankruptcies, judgements, and tax liens)
If I’m denied a job because of my credit report, does the employer have to tell me?
Yes, and they have to provide you a copy of the credit report they used to make that decision.
What can be used against me?
There are any number of examples. Bankruptcies, liens, collections, late payments, etc. Even having too many open accounts may indicate to your potential employer that you’re stretched too thin.
That’s not all…
You might have heard before you found this article that employers can use your credit report during the hiring process. But did you know that they don’t have to stop?
That’s correct, your employer can continue to check your credit at regular intervals, like criminal background checks or drug tests. And you can be held accountable at work for your financial issues.
Take Control of Your Credit
Knowledge is power. And when your employer knows more about you than you know about yourself, you’re letting them have more power over you than necessary.
Your first step is to start checking your credit report as often as they do, if not more often.
Use your right to receive a free copy of your credit report every year. (You ought to do this anyway.) Better yet, sign up for credit monitoring so that you can get alerted whenever a new negative item hits your credit reports.
Whenever you find a negative item, thoroughly check it for possible errors. And if you find any errors, dispute them. Or…
Allow us! Our credit professionals are here to answer your questions, address your concerns, and give you the best chance of restoring and improving your credit as much as possible. Just call or message us today.