Employers And Your Credit Report

Social media is not the only thing that employers can look at nowadays when conducting background checks on prospective employees. Can an employer pull your credit report as part of the application process? The answer to this question is yes. Why? Many employers simply feel that applicants who are responsible with their own finances would use better judgment, make better decisions and act more responsibly when faced with work related issues.  

Employers also believe that employees who are in good financial shape may be able to give greater effort at work without the added stress of personal financial problems. If your credit report is littered with unpaid bills or other negative issues, it could affect your chances of finding a job or landing that great new opportunity that seems like it was made for you.

So, what should you do if a prospective employer asks to see your credit report? The key is to make sure that things are in order before you start your job search and monitor your credit report for any changes that may occur. Here are a few tips that you can follow:

• Be Prepared - Get A Head Start On Prospective Employers - Check your credit report and score for any errors or negative issues that can have an effect on your credit standing. If you are actively job searching, consider having this as one of the first tasks on your list. If you wait until you are asked to see your credit report, you may risk not having time to review it to correct any problems before the employer gets a copy.

• Fix Any Mistakes ASAP - If you find any mistakes, no matter how insignificant they may seem, consider contacting the credit bureaus and follow the procedures to have them fixed or removed. This may require a written statement and other documentation that prove that the information contained in the credit report is inaccurate.

• Add A Statement Of Explanation Or Dispute For Negative Items - If your credit was affected due to an illness, death, extended layoff, identity theft or any other extenuating or extraordinary circumstance, you are permitted to add a short written statement to your credit report explaining the situation, and the reason for the negative information.

• Agree To The Credit Check And Be Prepared To Answer Any Questions - Once you have gone through your credit reports and corrected any issues or added explanations, you can begin your job search with confidence that you have done all that you can to present your credit history accurately. Try not to deny access to your credit reports if a prospective employer asks for it, as this could raise a red flag. You will now be better prepared to answer any questions that may arise concerning your credit report.

By keeping on top of your credit report and score, you can be reasonably sure that you’ll have no surprises if your credit report is reviewed by an employer. The use of a credit monitoring service can help you by providing you with your three bureau credit reports and alerts to any changes in your credit reports and scores.