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Employment Credit Check

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Employment Credit Check

Credit Report

Copyright SpiffyJ
Definition: Employers are increasingly running credit checks on job applicants and using that information to make hiring decisions. A Society of Human Resources Management (SHRM) survey reported that 60% of employers get credit reports on some applicants.

An employment credit report includes identifying information, including name, address, previous addresses, and social security number. It also shows the debt you have incurred including credit card debt, mortgage, car payment, student loans, and other loans and your payment history, including late payments.

Some states are proposing legislation to ban some employment-related credit checks, but, to date, no laws been enacted.

Before an employer can get information for employment purposes, the Fair Credit Reporting Act (FCRA) requires that they must notify you in writing and get your written authorization. If the employer is simply conducting inquiries (rather than running reports) they should also ask for your consent.

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