Prospective employers may want your credit report
It may not seem fair, but that company you're talking to about a new job can find out when you opened up your Visa and Nordstrom charge accounts and if you're keeping up with payments. Whether or not it's their business is up to you.
That kind of information is detailed in your credit report. Besides the date on which you opened up what credit account, the balance you owe and how often you pay, it includes your full name, address, former addresses and names, date of birth and social security number and public records such as tax liens, judgments and bankruptcies. All of this can be accessed as part of pre-employment screening, says John Ulzheimer, of Credit.com and author of "You're Nothing but a Number."
A would-be employer has the right to access this information thanks to the Fair Credit Reporting Act - but only if you give written permission by signing a release. So should you?
Here's the employer's rationale: They want to know this information because credit reports tell a story (somewhat) about how you manage responsibilities, says Ulzheimer. "This is of interest to employers as are other employee attributes they investigate through other methods of screening," such as drug and personality tests.
Certain industries are more interested in your money matters than others. Financial services companies review credit reports as standard practice, he says, because you will "have access to highly sensitive financial and personal information." Credit review would likely be part of the interview process for any job where money is handled.
The theory is that "'the flesh is weak,"' says Ulzheimer, with the employee giving in to temptation if buried by crushing debt and hounded by collectors.
If an employer does ask to have access to this information, you can certainly say no. One man told me he'd respond to the request by asking, "Why? Are you giving me a loan?"
If you do say no, you risk not getting a first or second interview. The employer may wonder what you have to hide. They may see you as uncooperative. They can read all kinds of things into it. Ulzheimer says that if you don't want an employer to have access to your credit report, "Then so be it," but you're "not likely to make it to the next level of screening."
I'm not suggesting you give the A-OK. I'm merely pointing out the mindset of the employer. So if you are asked for this data, you might ask what in particular they would be looking for. If you're squeamish about divulging such personal information, knowing what they're looking for might help you supply it some other way.
Do not confuse this information with credit scores.
"None of the credit bureaus sell credit scores to employers as part of the pre-employment screening," says Ulzheimer,
Although what an employer reads about you in the report can influence their hiring decision, they're not allowed to deny employment solely on review of someone's credit report, he adds. But all of this becomes a non-issue if you have excellent credit, he says, and "in that case I wouldn't think you'd mind someone taking a look as it will likely give you an advantage over competing applicants with poor credit."
On the other hand, maybe you want to be judged by your proven abilities and experience as to whether you're right for a particular job. In that case, I could understand why you would mind someone snooping around your personal information that may have nothing to do with how you'd handle a job.
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