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Could your credit report cost you a job?

Could your credit report cost you a job?

By Karen Stiles. CREATED Nov 19, 2013

MILWAUKEE - A poor credit history can affect our ability to obtain a loan. But did you know that the information on your credit report might also affect your employment?

Your credit report, even in a limited form, can tell a potential employer a lot about you. It includes your address, how many times you have moved, how consistent you are in making payments, and how well you manage debt. Employers can use this information as part of a background check to gain an insight into how responsible you may be with details of your job, whether outside personal problems such as financial stress may affect your job performance, and how likely you are to stay with their company.

Can a potential employer obtain a credit report on you without your knowing it?

A potential employer must obtain your permission to pull a credit report. You have the right to refuse, but keep in mind, without a thorough background check, an employer may not consider you further for the job.

What can you do if you fear that your credit report could adversely affect your ability to get a job?

Before you apply for a job, check your credit report to be sure that everything is accurate. And take measures to clean up whatever may be questionable. If you have had some issues that have affected your credit history through no fault of your own such as identity theft or a billing error, try to get the credit reporting bureau to make a note of this on your account. If you have issues that could be questioned by a potential employer, be ready to explain how the problem happened and what you have done or are doing to correct it.