Can Employers Check Your Credit Report?

By Author: William Lathrop
Total Articles: 2
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If you have looked for a job you might have been met with a request by the employer to run a background check. This is done by the majority of employers and it usually includes your criminal history. The employer could also ask for your DMV record and a request to check your credit report. The reason for a check of driving record is simple. As a driver for a company your driving record could be potential risk. How is your credit report used?

A common example is if you are applying for a position where handling is a required duty of the position. Your history of managing credit will give the employer an idea if you are a gamble. It could also be said about dealing with any asset owned by the job.

A more general reason is to give them an idea of the level of your responsibility. If you are a person who defaults on their bills you represent a risk not to lenders but to employers. As stated above you will be entrusted with assets of the employer and if you are perceived as a risk you will be not hired.

For an employer to use your credit report as a background check they first must ask your authorization. ...
... This will include your signing of a form giving access to your credit report. The employer then can request a credit report from the three major credit bureaus.

What is given to the employer is an employment credit report. This is a report function is for employer use. This will not have your credit score. This is a common confusion individuals have. The Fair Credit Report Act gives employers a look at your credit report but it does not state anything about a right to your credit score.

The overall reason is employers are liable for negligent hiring. A credit report gives a more complete look of who the employer is hiring, If your credit report is not great you should do anything you can to clean it up before looking for a job. A common way is review your credit report for errors and dispute them. Possibly, they will be taken off to clean up your report.
To read more about the credit score scale visit William's website. You will be able to find more information on how to get an excellent credit score