According to a study by Bankrate.com, 35% of Americans have never laid eyes on their credit report. This could be a costly mistake as your credit score and history often dictates the pricing for a lot of things — cars, mortgage loans, credit cards. What may not be as widely known; however, is that, your financial past could impact your employment future. Although not an overwhelmingly common practice, some companies are running credit reports of potential hires before making a job offer in order to gauge how responsible candidates are. This could be of particular importance if you are seeking a position of responsibility in the financial services industry where your credit history is most likely to be reviewed.
Recently, New York City passed a law limiting the use of credit checks by employers for employment decisions. Ten states—California, Colorado, Connecticut, Hawaii, Illinois, Maryland, Nevada, Oregon, Vermont, and Washington—and the City of Chicago also have enacted similar laws. There are however, broad exemptions for the financial services industry, for workers who are required to handle any amount of money, or for some high level executive positions with profit and loss responsibility.
Everyone is entitled to a free credit report once a year from each of the three credit bureaus: visit www.annualcreditreport.com to view all three. If there is incorrect information in your report, you have the right to file a dispute and also write a comment that anyone who views your report can see. If your score is low, there are often steps you may take to improve it. Interview or no interview, don’t ignore your credit report, as it can have a huge impact on your life.