| Over the past decade, it has become much more | | | | simply to verify who you are. Identifying information like |
| common for employers to run a credit check on | | | | social security cards and drivers licenses can be |
| potential candidates. This has become even more | | | | forged fairly easily, whereas credit reports are fairly |
| prevalent as the number of available of jobs is limited | | | | reliable. Another reason that employers may want to |
| and the number of qualified applicants increases. | | | | see your credit history is because it can be an |
| However, many people still do not understand why | | | | indication of how you handle credit responsibilities, |
| their credit score matters in regards to employment | | | | which can provide insight into your character and how |
| and how their credit score may affect their job search. | | | | you manage your own lifestyle. |
| Here is a quick look at what your credit score is used | | | | How Can This Affect Your Job Search? |
| for and how it could affect your job search. | | | | If you have a poor credit history, there is a chance that |
| In 1998, the SHRM (Society for Human Resource | | | | you will not be able to easily find a position in a |
| Management) took a poll and found that only 25% of | | | | financial-related field such as working for banks/lending |
| employers did a credit check on prospective | | | | institutions, cash handling positions, or any position that |
| candidates. By 2006, more than 43% of all employers | | | | provides you with sensitive information. Keep in mind |
| were doing this. Since the economy is in a period of | | | | that in order for an employer to gain access to your |
| slow growth, employers can be a little pickier when | | | | credit history, you will have to sign a consent form. If |
| choosing new hires. With this being the case, more | | | | you know that they will doing a credit check, being |
| than half of all employers now use credit reports. | | | | proactive and addressing the issue right away can go |
| Why Will Companies Check Your Credit Score? | | | | a long way in limiting the damage that your credit |
| This is a common question that many people are | | | | history could cause. This is especially true if you can |
| asking. Unfortunately, they are asking the wrong | | | | discuss what caused your financial issues as well as |
| question. When a potential employer gets a verified | | | | describe steps that you have taken to fix them. |
| credit report, it will not include your credit rating, credit | | | | In short, your credit score can in no way affect your |
| score, or any indication of how good or bad your | | | | job search, however your credit history can. Stay alert |
| credit is. What they will receive is a credit history | | | | for any instances in which your potential employer |
| based upon information that can be found using public | | | | wants to you sign a consent agreement so that they |
| records. This can include issues like prior bankruptcies, | | | | can gather credit related information about you. If this |
| payment history, and tax liens. | | | | happens, address the potential issues that they may |
| Why Do Companies Check Your Credit History? | | | | uncover. This can go a long way to minimizing any |
| There are a variety of different reasons a company | | | | negative impact that your credit history can have on |
| may want to check your credit score before offering | | | | your potential job opportunities. |
| you a position. In many cases, this process is used | | | | |