Consumer credit histories are not only important for lenders to review your financial history; they also contain your work history. Employers and lenders often use this demographic data to make informal decisions on loans and, possibly, potential jobs. Fortunately, if the credit bureaus have a false work history, or you do not want anyone to see it, you can request the bureaus remove the information from your report.
Identification
Your work history is included in your credit report, but not your salary. The credit bureaus ultimately get this data from you, because individual creditors relay information from credit applications to agency databases. When an employer pulls a credit check on a potential hire, they receive an employment credit history. This does not contain a person's age, credit account numbers or their credit score, so a low credit score does not affect your ability to get a job.
Effect
Even though work history has no bearing on your credit score, it can affect your creditworthiness. Lenders like to see borrowers with a stable job history, because bouncing from job to job may leave you without an income for those in-between months or not stable enough life to repay a loan. Employers may question your integrity if your stated work history does not match the one on your credit report.
About Employment
A potential employer running a credit pull and looking at your work history is usually a good thing, because it means the company considers you a likely candidate. Background checks take time and money, so companies typically weed out applicants before performing employment screening. If the employer decides against hiring you due to information in your credit report, he must send you a copy of your report and a summary of your rights under the Fair Credit Reporting Act. After furnishing this information, he must send an "adverse action" letter that describes where he received the credit report and includes the right to dispute negative information, according to the Federal Trade Commission.
Tip
Most consumer credit profiles contain errors in the employment history section, according to Norm Magnuson of the Consumer Data Industry Association. You can initiate a dispute with the credit bureaus to have them remove your employment data.
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