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Employers sometimes check credit to get insight into a potential hire, including signs of financial distress that might indicate risk of theft or fraud. They don't get your credit score, but instead see a modified version of your credit report.
Does an employer credit check hurt your credit score? Your credit score won't be affected by a potential employer conducting a credit check on you. An employment inquiry is treated like a soft inquiry, Ulzheimer says. Not visible to other parties (other than you) and not considered in credit scoring systems.
Thanks to the Fair Credit Reporting Act (FCRA), employers can't go checking your credit history behind your back. They must have written consent before pulling an applicant's credit history.
Current or potential creditors like credit card issuers, auto lenders and mortgage lenders can pull your credit score and report to determine creditworthiness as well. Credit history is a major factor in determining (a) whether to give you a loan or credit card, and (b) the terms of that loan or credit card.
Companies that run credit checks see a limited version of your credit report. It includes personal information to verify your identity (with the exception of your birth date); your Social Security number; and loan and credit card accounts, including payment history and whether any accounts are in collections.
Why Your Employment Is in Your Credit Report In fact, an employer is on your report because you provided that information on an application for credit. The paperwork for loans, credit cards and finance companies typically have a field for you to submit information about your job.
The employment information on your Equifax credit report is provided by you or by your lenders and creditors. Employment information is typically reported from credit applications and is not regularly updated. This information is not used by lenders, creditors or employers in making their decisions.
Again, a credit check likely won't affect your chances of getting a job unless you're pursuing a financial or management position or may be privy to sensitive information. If you plan to work with a company's finances, the hiring managers want to make sure you handle money responsibly.
You can request that the employment listing be removed from your report by going online to dispute your credit report information. Simply follow the steps in the online process to dispute the employer listing. Your personal report will also include a toll-free telephone number you can call for assistance.
Is Employment Listed in Your Credit Report? Credit reports contain more information than just your credit accounts, they can show your current and past employers. Do Employers Check Credit Scores? Although they can't check your credit score, a potential employer may look at a modified version of your credit report.