Do you know that employers can check your credit report and doing that is part of employment screening? However, they can’t check your credit report without your permission. Also, the credit report available for an employer doesn’t show your three-digit credit score. But there is a twist here..credit bureaus have a different product available for the employers which contain all the information that goes into making up your credit score. Here is what goes into it and what your employers can learn from that:
- Late Repayments: Delay of 30, 60, 90 days in your repayments shows that you are not very responsible, planned and organized and you don’t live up with agreements.
- Lawsuits: This may appear as a red flag for a financial or administrative position because this suggests the chances of you doing fraud or theft with company data or money.
- Credit Utilization: High credit utilization shows employers that you're in over your head and can't stick to a budget.
- Multiple Accounts: Having multiple loan accounts will let your employer think that you are desperate for credit and money. And this is a sign to the employer that you are not stable.
Companies prefer checking your credit report as they feel this is more reliable than verifying references. Don’t let your employer judge you by your credit history, make your repayment is done well on time. If you make your repayments on time and stay within your credit limits, your credit report may appeal to hiring managers looking for an organized employee.