Can They Do That? Your Credit Report Can Cost You a Job
Contributed by Caryn e Zent
Can what's on my credit report cost me a job?
Unfortunately, the answer is yes. There are negative aspects to items on your credit report you may not have thought about. Running your credit is a way many employers use to evaluate potential and current employees. And it's not just government offices, although the federal government is especially concerned about how items on potential and current employees' credit report can make them some type of security risk.
This information is used to help employers decide who to promote, demote, fire, and hire. More and more employers are using credit reports in the hiring process. However, many experts say other types of background checks are much more valuable to employers than what is contained on a credit report. The Fair Credit Reporting Act requires that an employer obtain your permission to run your credit report.
And, according to bankruptcy code, employers cannot use a bankruptcy to discriminate against a potential or current employee.
Does your credit report catch you in a lie?
Is your nose growing, Pinocchio? If you lie on a job application, you lose your job, period. You are much more likely to get the boot if you lie about criminal history or about an identity issue. For the most part, these items are found in background checks rather than on a credit report. But the employer can use credit report information to help verify Social Security numbers, address history, and employment history.
A lender will usually verify employment, so seeing who has given you credit can also somewhat verify your employment history as you state on your application. Items on your credit are most likely to affect you if you require a security clearance of some kind or you deal with cash directly.
