Employer Credit Check

If you are ready to enter the workforce, it’s likely you will be subjected to an employer credit check. We all know that the current job market is plenty tough enough. But who would ever think that you may not be offered the job of your dreams because of information in your credit report. It does appear that an prospective employer credit check is becoming the norm when applying for a job. Employers would check both your credit score and credit reports at the same time.

It makes very little sense that you wouldn’t be qualified for a job because are still dealing with medical expenses from a year ago? Most would agree that a past financial situation would not have any bearing at all with an employees’ talent in the workplace.

Employer Credit Checks for Employment

A current estimate says that 1 out of 10 job seekers were turned down for employment because of information in their credit report file.

Part of the problem is credit reporting errors found in potental employees credit files. A February 2013 study by the FTC shows that 21% of Americans had an error in their credit report. 13% of these consumers had errors large enough to actually change their credit score.

Video On The Effects Of An Employer Credit Check

Under the FACT Act, credit reporting agencies have an obligation to help keep accurate information in your credit report file. But you must first do your part by reviewing your credit report at least once per year. Then informing the credit reporting agencies of any discrepancies you may find. You may be surprised at some of the information that is in your credit report.

Credit report errors may include any outdated in formation of more than 7 years old, 10 years if you had a bankruptcy. Also check for names that are not you, any wrong social security numbers. Accounts that are not yours, and addresses where you have never lived. Don’t forget to look for any credit inquiries that you did not authorize.

The three consumer reporting agencies have 30 days to investigate. Then give you a written report of what they found. And a copy of any corrections made to your credit report file.

If the credit report dispute would end up unresolved. You have the right to place a 100 word statement in your credit report file. Explaining any information you feel is not correct. You may also use the statement to give reason for any history of late payments. Like if you had a company layoff or if you were laid up with an illness.

Is This An Unreasonable Barrier To Employment?

Should employers do credit checks? Because of the recent use of the employer credit check, jobseekers sometimes find themselves unable to land employment. Because of their bad credit report and unable to improve their situation because they cannot find work.

Be Pro-active

If you think a prospective employer may pull a credit check on you, you need to check for any errors in your file first. Viewing your free credit report annually is allowed by both state and federal laws. You can request your annual free credit report once every 12 months from each of the three consumer reporting agencies, Equifax, Experian and TransUnion. It only takes a couple of minutes to view and print your annual free credit report so there isn’t any reason not to do so.

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