Should I review my credit report before I look for a job? I’ve heard that bad credit could hurt you looking for work, but how can that be? And what can I do to clean up a report quickly as I look for work?
You should definitely review your credit reports well before you look for a new job, according to John Ulzheimer, president of consumer education for Credit.com. Employers have the right under federal law to pull your credit reports as part of pre-employment and continuing employment screening. They do need your permission to do so.
They are generally looking for responsibility in your personal financial life. Ulzheimer noted that employers do not get your credit scores as they are not provided by the credit bureaus along with the credit reports sold for employment screening.
The credit reports sold for employer screening are different from those sold for underwriting. There are several provisions of the Fair Credit Reporting Act that levy requirements on the bureaus when they sell pre-employment credit reports.
In order to comply with those provisions, they must know that a report is being used for employment versus for underwriting. The type of report sold for employment screening does not come with a score.
If you have a bad credit score, though, it is possible it could be tougher for you to find a job. Ulzheimer said a bad credit score typically is synonymous with having a poor credit report.
Consumers can get a free credit report at www.annualcreditreport.com or toll-free at (877) 322-8228.