Job Application Background Checks: Why You Should Check Your Credit Report
When you're job searching, it's important to be aware of potential employer background check procedures. One common type of background check is a credit check. Many law and finance firms are legally required to perform credit checks on potential employees as part of their hiring process. This helps ensure that the employee can handle money responsibly. This blog post will discuss what these procedures involves and what you can do to prepare in order to secure your next job.
Related: 6 Red Flags to Look Out for When Accepting a Job Offer
What is a Background Check?
A background check is a process by which an employer gathers information about a job applicant. This background check may include but is not limited to, the applicant's education, employment history, and credit score. Background checks are often used by employers as part of the hiring process. Some employers such as law and finance firms are legally required to conduct background checks, while others may do so at their own discretion.
Why Do Employers Perform Background Checks?
There are many reasons why an employer might choose to conduct a background check on a job applicant. Some common reasons include:
- To verify the applicant's educational qualifications
- To ensure that the applicant does not have a criminal record
- To determine whether the applicant has been involved in any lawsuits
- To check the applicant's credit score
What is a Credit Ccheck?
A credit check is a process by which an employer reviews an applicant's credit history. This includes reviewing the applicant's credit report. Your credit report is a detailed summary of your credit history. It includes information on all of your open credit accounts and loans, as well as your payment history and current balances. A credit check can provide employers with a good idea of how responsible you are with money. It can also help them determine if you're likely to repay any loans that they may give you.
Credit checks are often used by employers when hiring for positions that involve dealing with money. This helps ensure that the potential employee can handle financial responsibilities responsibly. Credit checks can also be done by other employers, such as large businesses, when the job role involves dealing with money. With your permission, employers can look at your 'public' credit report.
Can an employer perform a credit check without my permission?
Employers can not perform a credit check behind your back without your knowledge or permission. They must have consent before pulling an applicant's credit history.
Related: 7 Job Search Hacks to Get You Hired
What Should You Do?
If you're concerned about the impact a credit check may have on your job search, be sure to contact the employer beforehand. Many employers are happy to discuss the hiring process with potential employees and answer any questions potential employees may have about the process.
You may also want to consider ordering a copy of your credit report to review from one of the three major credit bureaus - Experian, Equifax, or Callcredit.
The next step is fixing anything incorrect on your credit history so that nothing comes up during a job search. Errors in your report can happen, but you can fix these mistakes by contacting your lender or credit reference agency.
If you have a ‘red flag’ on your report that isn’t a mistake, don’t worry- just start preparing your explanation to your potential employer. If you were affected by hardship beyond your control, an employer will take this into account.
You can also contact the credit reference agency involved and ask if they will add what's called a ‘notice of correction’ to your report. This is a small note of 200 words that explains your circumstances.
Related: The Best Company Benefits to Consider When Accepting a Job Offer
If you're job searching, it's important to be aware of the potential employer background check process. Your credit report will play a key role in whether you get hired for certain jobs-especially ones that involve handling money responsibly. If there are any errors on your credit report and they haven't been fixed yet, now is the time! Good luck!
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