Your Credit Report Can Affect Your Ability to Get a Job

As a consumer either gainfully employed, looking for new employment or entering the
working world, you must be aware of the information contained in
your credit report and
other background reports about you because your current or
potential employer can use it as part of your
employment background check.  Under the Fair Credit Reporting Act
(“FCRA”) employers are allowed to access your credit history for
employment screenings and the information contained in your report
can most certainly affect your ability to be hired for the job.

Under
recent amendments to the FCRA, which I covered in detail in a
previous post, potential employers must have your express
permission to access your credit file.  When applying for a
new job or gainfully employed in your current one, an employer will
likely provide you with paperwork to sign, granting your permission
to pull a copy of your report.  Refusing to allow an
employer to review your credit history may cost you the job and the
information contained your report may cost you to job too!  So
prior to searching for employment, make sure you know what’s on
your report and begin taking the steps to clear up the information
that could be hurting you.
  
It is important to understand, that the report an employer can
access is not the same report you can request on yourself. 
Because an employer is only allowed to look at your credit or
background history, it is not provided with a copy of your
credit score.  Your employment potential should have
nothing to do with your score.  Also, unlike credit
applications, employment applications do not negatively impact your
score.

Should an employer decide not to hire you based on the
information contained in your report, it must provide you with
notice under the new amendments to the FCRA.  Your failure to
be hired allows you to receive a free copy of your credit report much like
how a credit denial entitles you to a free report.  If you did
not know what was on your report prior to applying for a job, use
this opportunity to find out and make the necessary corrections so
you are in a better position the next time
around.   

The moral of the story is, your credit report can and most
likely will affect your chances of being hired.  If you are
looking to get hired, make the effort to improve your credit. 
Try to make all of your future payments on time and pay down as
much of your credit card balances as you can
afford.   

If you are having problems with your credit report and need
advice or assistance in handling these issues, contact SmithMarco,
P.C. for a free case review.