The Reason Behind Employer Credit Checks

People commonly associate credit checks with events like purchasing a car, renting a home, applying for a loan, and many other situations where knowing your credit history is pertinent. One instance when many people do not expect to have their credit run is when applying for a job or new position. This occurrence is increasingly common, but many people fail to see its relevance. Depending on the corporation and the position you apply for, a credit check may be inevitable.

Why Employers do Credit Checks

The reason why the idea of an employer credit check is so foreign to many is that companies only subject certain individuals to them. Individuals who can expect to submit to a credit check are those applying for:

  • Senior executive positions
  • Positions with access to confidential information
  • Positions with access to the credit information of others
  • A human resources position
  • A healthcare job
  • Federal government positions

Employers perform these credit checks to protect against identity theft, embezzlement, and to simply gauge the dependability and responsibility of the candidate. Similar to when employers conduct background checks, they can legally deny you the job or position due to the results of your credit check, but there are restrictions.

The company must notify you of the credit check and get your permission before they can proceed with your application. They must also warn you before they reject your application as a result of information discovered on your credit report by sending you a “pre-adverse action notice.” After being notified, you have three to five business days to respond. During this time, you can fix any inaccuracies and put together an explanation of red flags on your report.

What They See

Unlike hard inquiries performed by lenders which give them access to your full credit report, employers only get a limited view. They cannot see your birth year, marital status, credit score or any account numbers. What they can see, however, is your payment record, the amount owed, and your available credit. Employer credit checks are soft inquiries, meaning that they do not affect your credit score and do not show up on your credit report.

How to Prepare for a Credit Check

Upon notification, you can prepare for a credit check by reviewing your credit report. Check for any inconsistencies and report them to the credit bureaus. People often discover instances of identity fraud after reviewing their credit report, as they recognize unfamiliar lines of credit. Such occurrences may lead to relentless debt collection calls from creditors and lenders in search of debt repayment. Trust the TCPA and FDCPA attorneys at The Law Offices of Jibrael S. Hindi to put an end to those calls today.

Our experienced attorneys can inform you of your rights and help you revive your financial situation. Creditors often violate consumers’ rights by calling them multiple times a day, while at work, and even contacting family members about their debt. We can hold them responsible for their intrusive debt collection tactics and get you paid! Contact us today at 1-844-JIBRAEL for a free case evaluation.