What Is Included in an Employment Credit Check

What Is Included in an Employment leistungspunkt CheckWhat Is Included in an Employment Credit CheckWhen applyingfor jobs, you make sure yourresumeandcover letterare well written, up to date, andtargetedto show that you are the best candidate for theposition. When you go to an interview, you do thoroughresearch on the company beforehandandpractice answering typical interview questions. However, one thing you mightnot think to prepare for is anemployment leistungspunkt check. In addition tobackground checks, some employers alsogroe nachfrage leistungspunkt checkson applicants and usethat information to make hiring decisions. ANational Association of Professional Background Screeners (NAPBS)survey reports 95 percent of employers conducted some type of employment background screening, 31 percent ran leistungspunkt checks on some applicants, and 16percentchecked the credit of all applicants. A CareerBuilder survey reported that 29% of employers who responded checked credit. Most backgrou nd screening occurred after aconditional job offer. Most often, employers checkthecreditofthoseapplyingfor jobs that deal with money. For example, jobs that require confidentiality and financial integrity (including positions in banking, accounting, and investing) will likely require credit checks. The best way to prepare for an employment credit check is to know what is inyours. What is (and is Not) Included in an Employment Credit Check An employment credit check is one of many common background checks. Employers who check an applicants credit typically use a third-party company. An employment credit report includes identifying information, such as your name, address, previous names and addresses, andSocial Securitynumber. It also shows the debt you have incurred, including credit card debt, mortgage and car payments, student and other loans, and your payment history of those debts and loans- including late payments. However, there is certain information that is not included i n an employment credit report. For example, your dateofbirthis not included on the report. It also does not include your credit score. Laws Restricting Credit Checks TheFair Credit Reporting Act(FCRA) is the federal legislation that sets the standards for employment screenings, including credit checks. Under the FCRA, here are some things employers must do (or must not do) when conducting a credit check on a potential or current employee The employer must get your written approval.Before an employer conducts a credit check on you, the company must notify you in writing and get your written authorization. If you do not consent to the credit check, the employer might go forward with theinterview process, but he or she may also reject your application on the spot. The report cant include old information.Generally, the credit report cannot include negative information that is sevenormoreyears old. It also cannot include bankruptcies that aremorethan 10 years old. There are lawsregar dingbankruptcy information.According to the FCRA, you cannot be discriminated against solely because you filed for bankruptcy. However, bankruptcies are public record, so it is easy for employers to obtain the information. You must be told if the report is used against you.If the employer does not hire you because of the report, the company mustinformyou. The employer alsomustgive you the contact information for the third-party agency used to get your credit report. You can see what is in the report.You have a right to receive a copy of your credit report for free. You alsoareentitled to a free report any timeitis used against you by an employer. You can dispute the information.Ifthedatainthe report is inaccurate, you can dispute thefindings. Here is more information onhow to dispute errors in credit reports. Some cities and states have laws that restrict or prohibit employment credit checks. Check with your states department of labor if you want to know the local laws about credit checks. Legal Issues with Credit Checks TheEqual Employment Opportunity Commission(EEOC) oversees employer practices regarding applicant credit checks. If you suspect that an employer has used credit checks to negatively impact candidates because of race, ethnicity, age or gender, you can report the organization to the EEOC. Most states allow employers to utilize credit reports in a fair and equitable manner within the hiring process. However, some locations have regulated the use of credit reports and placed restrictions on how the information can be used. California, Colorado, Connecticut, Hawaii, Illinois, Maryland, Nevada, Oregon, Vermont, Washington, and other states have statutes on the books limiting the use of credit reports. In these states, the use of credit checks is restricted to specified occupations or situations where financial transactions or confidential information are involved. Many other states have legislation pending that might prohibit the use of credit re ports by employers, or place restrictions on their use. In addition, some localities also have restrictions and prohibitions on job applicant credit checks. For example, New York City prohibits credit checks on fruchtwein job applicants. Exceptions include top-level executive candidates with fiduciary responsibilities, and applicants who would manage assets or oversee financial agreements worth more than $10,000. Chicago and Philadelphia also are among cities that restrict the use of employment credit checks. How to Prepare for a Credit Check The best way to prepare for a credit check is to get a copy of your credit report as soon as possible. This way, you can check for any issues or errors, and dispute them before an employer sees them. You are legally entitled to one free copy of your credit report every year from each of the three nationwide credit reporting companies. Here is more information onhow to access your free credit reports. If you know that a credit check is going to turn up questionable issues, its a good idea to be honest with the company and address those issues up front, but only when you know for sure that the employer intends to do a check. It is best to mention such issues on a need to know basis. When the employer asks permission to run the check, you should explain as succinctly and honestly as possible what they might find, and what you have done to rectify the situation. Keep in mind that red flags on a credit report dont automatically mean you wont get the job. Particularly if you went through a period of unemployment, or some other financial hardship- which so many of us have- the hiring manager might make a case for offering you a job despite what they find out about your past. The information contained in this article is not legal advice and is not a substitute for such advice. State and federal laws change frequently, and the information in this article may not reflect your own states laws or the most recent changes to the la w.