How Credit Reports Become Part Of Background Check By Employer

Your credit report can very well and most probably be used as a part of background check done by employers when you are looking for a job.

Whenever you apply for a job, the employer is liable to do a check on a background. This background information can include your driving record, criminal record, employment history as well as a credit report. It does not matter how you have applied for the job. You may have applied online or send your resume to by mail.

As long as you have provided the potential employer with your permission to do a background check, he can access your credit report. Your credit report has information regarding your personal details such as where you live along with information about your finances such as how regularly you have paid your bills, whether you have filed for bankruptcy in the past or are there any public judgments against you.

Credit reporting bureaus and other businesses that provide background information to employers regarding potential employees send credit files to employers that use it in turn to evaluate your application for employment. Your credit report can determine whether you get the job, are promoted or reassigned.

Credit reporting agencies not only provide information to employers but to several other businesses as well. Credit reporting businesses have an extremely profitable business where they provide information on your financial background through your credit report. They sell it to other creditors, insurance companies and banks.

The Federal Trade Commission enforces a law called the Fair Credit Reporting Act which protects the privacy and accuracy of information in your credit report. The Fair Credit Reporting Act also speaks about your rights as a job applicant and the employer’s responsibility when using your credit report as a way to assess your job application. This is the same law that entitles you to a free credit report from each of the three national credit bureaus Trans Union, Equifax and experience once every 12 months. This means that in any year you can access three credit reports.