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Your Credit Report History Effects Your Employment
Thank to the advance in technology, it becomes very easy for more companies look into your credit report to make assessment on your job application. It is a way to check to find about your history of habits that may be transferring to your job; especially, when employment involves handling money and important trade secret. Those companies will have greater concern with security and theft.
The federal law requires employers to secure job applicants' permission before accessing credit report files. It is your decision between getting a good paying job and keep your spending habits secret. When you apply for a promotion in your job, your company will take a look into your credit report in the assessment for promotion. Your personal information will no long personal in the age of advanced technology.
What is on the credit report?
This employment credit report includes much of the information about your loans and credit cards that is listed in your credit report. To protect your financial security and meet equal employment opportunity laws, all Experian employment credit reports omit your account numbers, year of birth and spouse references.
Traditionally, the biggest users of credit reports for employment purposes are companies in the defense, chemical, pharmaceutical and financial services industries because of the sensitive positions many of their employees hold. Increasingly, other industries use the credit reports to serve as a general indicator of an applicant's financial honesty and personal integrity.
Statistic shows
Thirty-five percent of companies use credit checks in pre-employment screenings, up from 19 percent in 1996, according to a survey of 208 companies by the Society for Human Resource Management.
About 41 percent of retailers said they used credit checks in pre-employment screening, according to the 2003 National Retail Security Survey, conducted by the University of Florida.
About 10 percent of retailers plan to increase their use of credit checks in the coming year, putting it among the top five screening policies that retailers intend to ramp up, according to the study.
What happen?
You must sign a release, before the prospective employers can pull your credit report history. The prospective employer will get a credit report history contained delinquencies, bankruptcies, judgments, liens and credit account such as mortgages, utility, credit card, and loans. It shows how responsible you are in your spending habits. However, the credit report will not tell about your age or marital status.
Don't Trip Up
Your credit report history contained past job history, so you should make sure that your resume don't omit the jobs listed in credit report history. The credit report can trip you up. When you apply for a new credit card or loan, you always provide information about your current employer. That information is passed along to the credit bureaus. If you leave a job off your resume and it appears on your credit report, someone may notice the discrepancy. It is a good reason to pull your own report from all three credit bureaus before you start looking for a job involves handling money.
Be Prepared
Check your credit reports history first, before you start your job search that is in security and finance. Order your credit report from each of the three credit bureaus, so you are not blindsided by inaccurate information that you are unaware until an interviewer surprises you.
If there are errors on your credit report, contact the creditor bureau that made the errors, dispute with credit bureaus until all the information is accurate. If there is adverse information on loans, credit card bills or bankruptcies on your credit report, don't your time on credit repair yourself; however, you should try professional help to help you. So be warned: you can't erase the truth from your credit file. Only time will erase the errors; most bad credit incidents will disappear from your record after seven years.
If you are turned down for a job because of credit problems, the employer has to give you a copy of the credit report and explain your rights under the Fair Credit Reporting Act.
Is It Fair?
What is considered to be fairness? It is something involve with responsibility, if you don't take responsibility for yourself, nobody will. If you have poor credit, you're unlikely to agree with prospective employers who think good credit is important. Also, you are just unable to convince a potential employer that those who have mismanaged their own money should be trusted to manage someone else's money -- and that's exactly what most finance jobs are about.
However, it is not the end of the road yet, you can try applying for work with smaller companies where the hiring process is not involve credit check. Take responsible and build new trust with your employer as your new stepping stone to a new job. If all else fails, you may have to work in another field, clean up your act and wait for those ugly credit history reports to disappear.
Check Your Credit History
You can order a copy of your credit report online from Equifax, Experian and TransUnion. Under an amendment to the Fair Credit Reporting Act, you'll be able to access your credit report for free once every 12 months.
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Material presented on Creditsknowledge.com is intended for information purposes only. It is not intended as professional advice and should not be construed as such. If you need help, you should seek proper professional advisor.
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