What Credit Score Do Employers Look At?
Some employers require you to submit to a credit check as a condition of employment when you are applying for a job. When employers perform a credit check, they do not actually receive your credit score. Instead, the get a credit report. There are three main credit bureaus in the United States--Experian, Equifax and TransUnion--and your employer may check one or all three.
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Credit Score and Birthday
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When your credit score is sent to lenders, it includes your date of birth and your credit score. This information is removed before your credit report is sent to your employer. Your birthday is withheld to prevent any potential for age discrimination by employers.
Restricted Credit History Items
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The Fair Credit Reporting Act is a federal law that restricts the credit-related information that employers get to see when they request a credit check. Most negative information like late payments and defaults are removed after seven years have passed as well as civil suits, paid tax liens and accounts sent to collections. Bankruptcies will be reported up to 10 years after they occur.
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What is in Your Credit Report
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Your credit report contains identifying information like your address, Social Security number and employment history. Companies often use your credit report to verify the employment history on your resume. Your credit report is a history of your use of credit and whether you paid your debts as agreed or if you were delinquent or defaulted on any of them.
Why Employers Conduct Background Checks
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Employers conduct these checks for a variety of reasons including fear of negligible hiring lawsuits, especially in organizations that work with children. Other common jobs that routinely conduct credit checks are those that involve handling confidential information or large amounts of cash.
Employee Rights
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Before an employee can conduct a credit check, the company must get your permission. If the company decides not to hire you because of information it found in your report, it must inform you of the information and allow you to dispute any incorrect information.
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