Wednesday, November 17, 2004

Do Employers Check Your Credit?

Even if you have a stellar resume, relevant experience and good interviewing skills, you might not get the job if you've got bad credit. MSN reports that a 2006 poll -- the latest data available as of 2011 -- showed that 43 percent of companies check the credit history of some or all potential employees.

Why Check

    Employers view a credit check as a way to vet employees. A good credit history shows that you are responsible with your money, which the employer assumes will translate into being responsible with your job. Additionally, an employer could worry that someone who has a lot of debt will be more likely to steal money from the company and commit fraud.

Most Likely Candidates

    Although some companies check all employees, others target only certain job candidates for a credit check. Primarily, these include upper-level management and anyone who has access to the company's cash. Your company might not check your credit until you are applying for a promotion.

Dealing With Problem Credit

    The company cannot check your credit history without your signed consent, so you will know when your employer is doing it. If you have negative marks on your report, it's best to talk to the company to explain your actions. Something that looks bad on paper might not be so bad when the employer hears the full story. If it's an obstacle that you cannot overcome through explanation, you'll have to build your credit back up before you apply for the types of jobs that require good credit.

Controversy

    Many people feel that checking a potential employee's credit score is an unfair practice. In economic downturns, it's much more common for people to struggle financially, which can wreak havoc on your credit report. From time to time, representatives in Congress have submitted bills that would make this practice illegal, but as of 2011 there is no law in place to forbid employers from checking credit.

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