A Good Credit Report is Required in the Current Job Market

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A good credit report is required in the current job market
2 years ago
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The job market is flooded with people who have an interesting, well-written resume. Many qualified applicants are turned away because of information found in their credit report. Credit reports are one of the top pre-employment screening applications used today.

Companies use credit reports to determine a potential employee's integrity, dependability and length of job history. It's common practice to compare information found on a credit report to information on a job application or resume, any discrepancies put the applicant's honesty in question.

It's quite possible to have a credit report riddled with incorrect or incomplete information and not know it. The credit reporting bureaus simply collect and list the data that is sent to them. They have neither the resources or time to verify the data. It's up to the individual to periodically check their credit report for errors.

Job seekers should obtain a credit report from each of the three credit bureaus, Equifax, Experian and TransUnion, before they update and send out any resumes. The Fair Credit Reporting Act (FCRA) requires that each company provide individuals with one free report every twelve months.

After receiving a credit report from each credit bureau, it's important to check all information carefully, paying close attention to dates, addresses and spelling of names. Each credit bureau will have a different format for their credit report and potential employers may use one or all three companies. So it's important to verify the information found on each credit report.

If any mistakes are found, the first step in correcting them is to go directly to the reporting source. Contact the creditor or person that made the error and ask them to correct it and contact each of the credit bureaus with the corrected information. Follow through and contact the bureaus to make sure the information has been updated. It's necessary to do this with each error found and may take several months.

According to the FCRA, an employer must get permission to access an individual's credit report. Job applicants will be asked to sign an FCRA disclosure and release form. If required to sign a disclosure and release form, it's a good idea to disclose any indiscretions that might be contained in the credit report. While it isn't necessary to divulge in-depth personal information, it is wise to be up front about past negative credit history as it pertains to the applied for position. This is especially true if applying for any job that deals with sensitive information or money.

Anyone can have financial difficulties; however, many companies aren't concerned with personal problems. They're looking for reliable, honest employees and need a quick, useful tool to determine those qualities. Most consider the credit report to be a consistent indicator of honesty and reliability.

Today's employers are faced with a large number of highly qualified job seekers applying for the same jobs. Employers don't have the time, resources or desire to evaluate the reasons behind a negative credit report. They have plenty of candidates to choose from and will choose the ones with a qualified job history, a strong resume and a good credit report.

By Beth Fields
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