• Background Checks and Your Credit

    Background Checks and Your Credit

    March 27, 2009

    A comment on a previous post about the credit score scale a commenter asked the question what credit score do employers check?  This prompt a complete research of what I believed was the answer but needed some verification.  The answer is employers actually do not check your credit score, they check your credit reports.

    The rules that are followed here are laid out by the Fair Credit Reporting Act.  It states employers do have the right to review your credit report as a form of a background check.  This does not happen without you knowing though.  The employer must receive your written permission before they can access your credit report and this will included the employee signing off on it.

    When an employer has your permission they then will request your credit report from one or all of the three major credit bureaus.  What they get from them is what is known as an “employment report.”  This is report includes all the same information as a normal credit report, but it will not include your credit score.

    So when you applying for a job and you are concern about your credit standing you should check your credit report.   Even though this is what really matters to the employer it would hurt to review your credit score when you are doing so.  Also, if you are concern it is not the cleanest report and could be a potential problem, you have a few options.  First would be to dispute credit report errors.  This will be one of the quickest ways to improve your credit standing.  Other methods could take some time, but paying your bills on time is one of the biggest.

    If you are wanting to check out how you stand visit MyFICO to get your Fico Scores/Reports.  This is the best place to get both.

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