You’ve updated your resume, applied for the position, and completed two rounds of interviews. Now, it’s a waiting game. Then, you ask yourself, “Will my credit history stop me from landing my dream job?” It’s hard to stress yourself out further with such a complex question, but the answer is yes and no. Here you will find insight to help make your job search a more worry free process.
Why would an employer check my credit?
Employers say they primarily check credit to prevent or reduce unethical and criminal behavior. If your dream job requires you to have access to financial accounts, cash, confidential information and national security information be prepared to have an employer request your authorization to run a credit check.
What are employers looking for?
Employers cannot access your credit (FICO) score; however, they can access your credit report. This means a potential employer does not see the same information as a potential lender. With this said, employers are able to look for patterns of negative credit history such as adverse public records, bankruptcy, collections, civil judgements, and tax liens. If an employer gives you the opportunity to disclose anything in regards to your credit history, don’t embellish the truth; give short, truthful, and accurate responses.
How can I prepare for a credit check?
The first step is knowing what is on your credit report. It is important to pull your credit report from each of the three credit bureaus (Equifax, Experian, and Transunion) regularly even if you are not searching for a new job. Did you know that once every 12 months you can access your credit report for FREE? Your free credit report can be obtained from www.AnnualCreditReport.com. Once you have obtained your credit report, go through it with a fine tooth comb to ensure all details are up to date and correct. If you do find an error, contact the creditor as soon as possible and clear it up. Don’t forget to ask the creditor to report any mistakes and/or updates to each of the three credit agencies.
What happens when an employer denies me?
If an employer decides not to offer you a job based on your credit report, do not get discouraged. Due to Fair Credit Reporting Act (FCRA), employers must provide you a copy of your credit report along with a copy of your FCRA rights; so you will be able to review what they see. Be sure to review the credit report to ensure no errors or discrepancies are listed.
How can I recoup from a rejection?
Don’t worry, if you feel credit checks are halting your job search; depending on the employer, your credit history and the position you are applying for, credit is not always a deal breaker. Be proactive, enroll in credit monitoring and begin a debt management program. If you need financial advice, contact a financial counselor. ABNB Federal Credit Union offers FREE budget counseling, money management and debt management to ABNB members. Call the Financial Counseling Department at (757) 523-5380 for a confidential appointment today!
REMEMBER, do not give up! If you remain positive and enter your job search prepared, there’s a dream job on the horizon and significant benefit to being more financially responsible.
ABNB Federal Credit Union
Human Resources Generalist