Why Do Employers Check Credit Reports?

check credit report

Do you know what your credit score is?

It is often said looking for a job is like having a job. Hunting for a job is stressful and your stress only heightens when you realize that some employers check both your background and your credit reports. But why would employers check the credit reports of their potential employees anyway? Let’s take a look at why employers check credit history and what they do with this information.

Why Do Employers Check Credit Reports?

Most companies check credit reports to help prevent or reduce theft within the company. It is thoughts that people with large amounts of debts may be inclined to steal from the company and to reduce potential liability when hiring new people. People applying for positions in the accounting, financial, or money-related industry should expect to submit to a background and credit report check before being hired. Other types of positions that use credit report checks include positions with national security clearance and positions that have access to confidential information.

What Do Employers See?

Unlike personal credit reports, the reports an employer sees may look a little different. These credit reports will not list your age, year of birth, or account numbers that are shown on your personal reports. Your potential employer also will not be able to see your overall scores and once it is pulled, your score will not be affected.

How Will Credit Affect Your Chances?

If you are worried about a late payment effecting your chances of getting a job, don’t. One or more derogatory marks on your credit report may not put you out of the running for the job. Most employers will still hire someone with negative credit even if it means you won’t be put in charge of handling other’s finances or sensitive information.

Applying for a job does not automatically mean you will be required to have a credit report check done. Many states have laws that restrict or prohibit employers from using credit reports when hiring in most circumstances. However, there are no current bills in Congress to restrict the practice nationwide. So before you apply for your dream job, make sure to take a look at your credit report to ensure it is perfect.

Credit Report Checks with AIR Pre-Hire

AIR Pre-Hire in Reisterstown, MD, conducts accurate and verified universal background screening, so you will have thorough background checks on your employees. Here at AIR Pre-Hire we don’t simply check the basic information, we dig deep to identify inconsistencies and make sure your potential employees (as well as existing employees) are acceptable for hire. This is the human element of our custom pre-screening service. You can count on us for timely, verified pre-screening and employee re-screening.

Learn more by visiting our website www.air-prehire.com or calling us at 1-800-469-4473. Check us out on Facebook, Twitter, Google+, and Pinterest as well.

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