Here's advice on the credit information that can be collected during an employee credit check and how your credit report impacts employment opportunities.
Employee Credit Checks
Companies are running credit checks on job applicants and employees being considered for promotion often and are using that credit information as part of the process when making hiring decisions. Here's advice on what companies can check and how it can impact hiring.
Employee Credit Reports
What's in your credit report and why is it relevant to employment? What's in your credit report can hamper your job search and it can be grounds for knocking you out of contention for a job. Especially when it comes to jobs where money and financial information is involved, bad credit can be an issue.
What's Included in an Employment Credit Check
An employment credit report includes identifying information, including name, address, previous addresses, and social security number. A credit check also shows the debt you have incurred, and your payment history, including late payments.
Why Employers Check Credit History
Employers can, with the permission of the job applicant or employee, check your credit history. Here's the credit information that is available to employers.
Fair Credit Reporting Act (FCRA)
When employers conduct a check of an employee's or applicant's background (credit, criminal, past employer) using a third party, the background check is covered by The Fair Credit Reporting Act(FCRA).
How To Get A Free Copy Of Your Credit Report
The Fair and Accurate Credit Transactions Act of 2003 (FACTA) made it possible for you to get a free copy of your credit report. Through FACTA you can order a free copy of your credit report from each of the three major credit bureaus - Equifax, Experian, and TransUnion - each year. You should take advantage of this privilege by ordering your credit report and using it to monitor your credit history.
How to Read a Credit Report
You don't need to hire an expert to decipher the details of your credit report. Learn the ins and outs of credit reports, and learn how to report mistakes on your report.