Credit Reports, who needs them anyways?

Why Your Credit Report Could Make or Break Your Next Job Application

The days of “dress for the job you want not the job you have,”extra resumes, a firm handshake, eye contact, and a glowing smile are things of the past. 

A recent survey by CareerBuilder found that 72 percent of employers conduct background checks on prospective employees and include a credit check in 29 percent of cases. That means if you have a dark financial past, it could come back to haunt you during the job application process.

  • What Are Employers Looking for in Your Credit Report?

Credit reports, detailing your history of borrowing and paying back money, can shed some light on how you will perform as an employee. Or so employers believe and here is how.

  • History Handling Money

One of the biggest reasons employers will check credit reports of a prospective employee is to be sure their money is in good hands.

Generally, employers want to look at your credit as a safety measure, and as proof that they tried to find out as much as possible about your background before they hired you,” says Jeff White, financial analyst and staff writer for Fit Small Business, a site that provides financial advice to small businesses. 

  • Decision-Making Ability

Even if you aren’t handling finances as part of your job, negative items on your credit report are still a red flag to employers.

Foreclosures, multiple bank account closings or liens against the job candidate could be interpreted as signs of irresponsibility and negligence,” says Peter Yang, co-founder of ResumeGo, a company that offers career coaching and resume-writing services.

  • Potential for Criminal Activity

Applicants who have major derogatory marks on their credit reports could be considered a risk for criminal behavior.

Some companies might even suspect that someone with large debts might be more likely to steal from the firm if hired,” says Yang.

  • The Law: What Employers Can and Can’t Do With Your Credit Information

Before you panic about potential employers accessing your personal credit information, know that the law is on your side. There are a number of rules in place to ensure you aren’t treated unfairly during the application process due to your credit profile.

  • Credit information can’t be considered in some states. Although many employers do consider credit reports when making hiring decisions, a significant portion are not allowed to do so by law. Several states restrict or prohibit the practice in most circumstances, including California, Connecticut, Illinois and Maryland, according to the National Conference of State Legislatures.
  • Employers receive limited information. When employers pull your credit report, they don’t see the same information that lenders do. Rather, they receive a modified version of your credit report that omits personal information that could be used to discriminate against potential candidates, such as your birth year.

For the rest of this eye opening article on jobs and your credit report.

So it is not only important for your personal life to make financial sound decisions, but now your livelihood depends on it as well.

  • Be sure to do your due diligence by getting your credit reports for free annual at 
  • If there is any discrepancies dispute them, put a freeze on your account, and or put a fraud alert on your account.
  • Equifax Security Freeze P.O. Box 105788 Atlanta, GA 30348.          866-447-7559

    Experian Security Freeze P.O. Box 9554 Allen, TX 75013                888-397-3742

    Trans Union Security Freeze P.O. Box 2000 Chester, PA 19016       888-909-8872

    It is your most private information and worth protecting at all costs. The task is yours and yours alone, especially now. Make the necessary phone calls, write/send the necessary letters and emails, file the necessary complaints, and show them that their is no such thing as a corporation “to big to fail.” Fool me once shame on you, fool me twice shame on me. It’s your life, and it’s time to take it back!