Credit and the Job Search

It’s a frustrating thought. You are out of work and that has led you to live in debt. A job interview has gone well, and you are on the verge of landing a job. The steady income from that job could help you work your way out of debt. And you start to wonder, how much of your credit record does a potential employer know about you? Could my credit report cost me the job?

The answer is yes. The things on your credit report could cost you your job opportunity. An interviewer can inspect as much of the credit report as he or she would like, so long as you give permission for the employer to take a look at it.

The Fair Credit Reporting Act allows an employer to view your credit report when granted permission, as is customary in a job application. If they deny you a job based on the information, they must show you the report and inform you on the way to obtain your own copy.

The credit check is not necessarily for consideration of your credit history. The purpose of the check could be for something as simple as verifying your address. However, your credit report can give employers clues as to traits such as accountability, commitment, and personal integrity. The credit report is particularly of interest for jobs involving access to money. 

If your credit is not in control, however, then you might want to address the credit issue head on with the interviewer. Ask about the credit check if you think they will conduct one. Discuss the credit issue with them. Provide any evidence that you think will help you.  If you will ask for a free credit report at the beginning of your job search, you can identify anything you might need to explain.

For those concerned with this issue, relief could be on the way. A bill has been introduced in the U.S. House of Representatives to ban the use of credit checks for negative employment decisions.  Some financial firms would be exempt from the measure.