|
CREDIT REPORTS AND EMPLOYMENT
Credit History
As you enter the world of work, you begin to build a credit history - a record of your borrowing and paying habits. Credit reporting companies track your history and supply this information to credit card companies, banks, and other lenders. They in turn use the information to determine if they should loan you more money.
Credit Reports and your Job Search
An employment background check often includes a version of your credit report. The three major credit-reporting agencies provide a modified version of the credit report called an "employment report." An "employment report" includes information about your credit-payment history and other credit habits from which current or potential employers might draw conclusions about you.
Often employers use your credit history to gauge your level of responsibility. Whether a valid assumption or not, some employers believe if you are not reliable in paying your bills, then you will not be a reliable employee. Unfortunately, a bad credit report can work against you in your search for employment.
In addition to your payment history, a credit report typically includes information about your former addresses and previous employers. Employers can use this as one way to verify the accuracy of information you provide on an application or resume. |
