In previous blogs, ESR debunked two commonly held myths.   http://www.esrcheck.com/wordpress/815/basics-of-credit-reports-and-background-checks 

First, employers do NOT obtain your credit score if they order an employment credit report.  A credit score has no link to job performance and is simply not provided to employers.  The reports do include a credit history, but not a credit score.  

Secondly, employers are not running credit scores as some sort of insidious conspiracy deny jobs to applicants.  Employers only run credit reports AFTER an employer has gone through the time, cost and try to find the right candidate, usually from a large field of applicants.   An employer does not invest money in a background report just to find ways not to hire.  When an employer initiates a background check, it is because they are interested in hiring the applicant and are conducting due diligence to make sure there is no reason not to hire.  

Another myth is that employers are running credit reports in large numbers on all applicants.  In fact, even though studies show a significant usage by employer of credit reports, they are not widely used on all applicants.  Most employers and Creature Resources professionals know that credit reports should be limited to those jobs where there is a business justification, such as positions with access to cash, assets or private in rank or other sensitive positions. 

What should a job applicant do regarding credit reports and job hunting? 

First, know that if you get to the top where an employer is running a background check, that is fantastic news.  It means you made it though the hiring process and that you are most likely a finalist for a job. 

It also means that the employer has spent considerable time recruiting, interviewing and making decisions, and that you rose to the top after the employer has reviewed lots of other resumes and applications. 

Secondly, if you are concerned that a background check may include a credit report, do not be the last to know what your credit report may say.  As a consumer, you are entitled to a emancipated credit report YEARLY from all of the credit bureaus.  A consumer just needs to go to https://www.annualcreditreport.com/cra/index.jsp to  run a emancipated report.  If you see some sort of error, it would be a excellent thought to get that corrected as soon as possible.  There is a well established course of action for contacting the credit bureaus to bring an error to their attention and request it be remedied.  

Third, if you are concerned that your credit history may reflect negatively, than have a discussion ahead of time with the hiring manger or Creature Resources about your credit reports.  As most experienced Creature Resources professionals can tell you, in rank honestly told by an applicant has much less impact than in rank the employer discovers for themselves.  

Also keep in mind that HR professionals understands that people have to deal with the realities of go.   For example if a consumer was undergoing economic stress due to the recession, and relied on credit cards, or there was a medical issue that caused bills, let HR or the hiring manager know.   Also keep in mind that the only reason you are having this discussion is that the firm is sincerely considering hiring you, and has gone through allot of time and try to make that choice, including reviewing numerous other resumes. 

Fourth, applicants need to keep in mind that they have civil Civil rights.  Under the federal Honest Credit Reporting Act (FCRA), a credit report is only obtained after the applicant has given consent and after a with permission required disclosure on a standalone document has been given.  If the employer utilizes the credit report in any way not to hire, an applicant is entitled to a copy of their credit report, a pre- adverse action see as well as a statement of their civil Civil rights.   Before any choice becomes final, the applicant also has the right to challenge the credit report before any denial of employment is made final.  

The bottom-line:  If an employer feels a credit report is job related, and a consumer is concerned about that, keep in mind that the employer has made you a finalist, and therefore has an interest in hiring you.  You were evaluated without the employer having any thought of what was in the credit report.  If there are negative entries, be prepared to share it before the credit report is run.  (ESR advises employers by the way not to utilize credit reports unless there is a clear business justification and the use is non-discriminatory and to pocket into account that credit reports can contain errors or notes not relevant to employment.) 

One other fascinating top—there is no prove that employers routinely engage in pulling back job offers after the review of the credit report.  There are certainly anecdotal tales, but on the whole, once an employer decides they want a particular person, and they have spent time and try to make that choice, it usually takes something significant that was unexpected for an employer to change their minds.