Have you ever applied for a job only to discover later that the company ran a credit check on you, which may or may not have affected you being hired? If this has happened to you, you are not alone. Many companies are now taking it upon themselves to check your credit as a screening tool to determine whether you're a desirable employee. But how in the world are they doing it?
How Employers Are Checking Your Credit
There are only a few instances that someone check your credit with or without permission. If you are running a corporation, a potential business partner can check your business credit. And if you have a child, you can check your child's credit to ensure that no one is trying to steal their identity. Aside from these two reasons, someone wanting to check your credit has to have your prior written consent - and the reason for checking has to be legitimate.
In many states, the general "good enough reason" for checking a person's credit is when an employer wants to determine whether they should hire you for a job. While some states are fighting this reason, many have not, which means that if an employer wants to gauge your level of responsibility, they can simply look at your credit report to see how you've managed your credit.
So how do they do it? They simply get your written consent. When do they do it? Often times, it happens when you're filling out a pile of paperwork, including background checks and the like.
It's tough to have your credit become an issue as you're looking for employment, especially if you were forced to default on some bills due to unemployment. However, if this is a concern for you - you don't have to worry too much so long as your report shows consistent responsibility (minus 1 or 2 default items).
