Do I Have To Worry About Employers Checking My Credit

Do I Have To Worry About Employers Checking My Credit

You may have just finished college and are looking forward to getting that perfect career. You may have had a great time and college, but it’s taken a toll on you as you might have piled up the credit card bills and a stack of student loans to fund your education, and now you’re having a hard time paying off this debt.

One of the challenges that face new college grads is employers checking your credit, and if you have poor credit, you may tend worry whether or not you land that dream job or not. One solution is through student debt consolidation loans for poor credit. The other solution is to have enough knowledge to see what employers are actually checking.

Today, we’ll go over what really matters to employers with your credit so you can put your tension at ease. Let’s get started!

Differences Between Credit Score and Credit Report

A credit score is a three-digit number that is used to gauge the creditworthiness of a person as a borrower. This is the number that is very important for all lenders in order to determine whether or not a borrower deserves approval. Usually, credit scores may fall between 300 and 850.

Meanwhile, a credit report is the history of all loan transactions that can show the credit behavior of a person, which covers both good and bad credit records. These records are created by three major credit bureaus that process all such data coming from lenders.

Your credit record is independent of your credit score while your credit score depends on your credit record. They are different from each other in the sense that a credit record doesn’t prescribe a rating.

Why Is Your Credit Record Important for Some Employers?

Not all employers will pay attention to your credit record, but those who ask for it are still out there. Although they are just minority in terms of numbers, they are still considered a large group of recruiters who begin the shape the way job candidates are assessed.

According to a study conducted by Society for Human Resource Management, about 47% of the total number of employers surveyed revealed that they check the credit records of their job applicants. In this study, it was found that those who check the credit records of their job applicants do so because of two reasons.

The first one is that employers may have fewer problems in terms of legal liability. The second reason is that employers want to make sure that their newly hired employees are less likely to commit theft and embezzlement.

Basically, employers just want to make sure they are hiring people who are trustworthy and responsible. They measure not how you are able to pay your credit, but how you handle your commitments, and this is very important for almost all employers.

Should You Worry About Employers Checking Your Credit Records?

You don’t have to worry about the fact that employers can check your credit records. Keep in mind that 11 states in the US prohibit or restrict employers from asking for credit records.

Moreover, those who are allowed to check your credit records can’t see your personal information. In addition, you won’t lose any point in your credit score when employers request for your credit records.

Final Thoughts

Whether or not your credit records are important for employers, it is still beneficial to keep your credit record clean. In this way, you won’t have any problem applying for a loan or for a job.