Do Employment Credit Checks Go on Your Credit Report?

You should be concerned with credit checks, because too many can seriously damage your credit, but employment credit checks are benign. However, the credit bureaus still keep track of employment screening and authorizing employment credit checks can potentially damage your credit if it leads to identity theft.

Identification

Employment credit checks go on your credit report under the "soft check" section. Soft credit checks do affect your credit like a hard check -- a request for credit. The bureaus track soft inquiries for your own information and so you can see who checks your report. Nobody but you can see the soft inquiries into your credit.

Considerations

You must consent to a credit and background check before an employer can screen your credit history. However, you should limit how many employment credit checks are performed to protect your private information. You would not want, for instance, a rogue employee to steal your private information, such as your Social Security number, and open a credit card in your name. The missed payments would wreck your credit history until you prove fraud to the credit bureaus.

Employment Credit Checks

Employment credit histories are slightly different than a normal credit check. For instance, an employment credit history does not list your age, but there are no restrictions on reporting other data if you apply for a job that pays more than $75,000 a year. If the employer rejects your employment application because of credit issues, the employer must provide you a free credit history report.

Tip

Employment credit checks only appear on your credit history for two years. Some states, such as California and Maryland, have tried to ban the use of employment credit checks. However, employment credit checks are a necessary security measure for some companies, especially for positions that require the employee to handle money. Thus, if you have a negative credit history, you should write a letter explaining the circumstances surrounding any negative events -- you can also leave a comment on your credit history.