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Can My Employer Check My Credit Report? |
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Your employer will check your credit report at the time of giving you a job or when you apply for a promotion. They do this for a variety of reasons such as to find out if your debt load is too high for the salary they are offering and also to see how trustworthy and reliable you may be when considering you for sensitive positions in security, banking or government jobs. Although employers cannot ask for many things under Equal Employment Opportunity laws, they can review your personal credit history. Many employers, including some security companies, banks and municipalities get the applicants to sign a waiver which permits them to get the credit report and do other background checks. You should, therefore, be concerned about the contents of your credit report and for that you have to check your credit report at least once in a year, not only for getting additional credit at good rates but also for ensuring your job security. It is also necessary to pull a credit history on yourself at least once every year to ensure that you are receiving the credit you deserve. This is recommended by the FTC. To get your credit report, employers, or prospective employers have to give you a notice in writing and for pulling your credit history from a Credit Reporting Agency (CRA), they need your consent. Even after you are hired, the employer can check your credit report at various intervals but for that they have to give you a "separate document notice' informing you that your reports will be pulled in the future. If too many inquiries are made for your credit report, your credit rating will be negatively affected and as such the employers should not pull unnecessary reports. You should pull your credit history regularly to check who has made inquiries and why. Two important amendments were made to the Fair Credit Reporting Act (FCRA) in 1997 wherein the first amendment makes sure that consumer reports can be pulled for employment purposes only if the individual agrees to it. Per the second amendment, individuals have to be notified promptly if information in a consumer report may result in a negative employment decision. According to FCRA, employers must follow certain rules if they check credit report of employees and rely on a credit report to take adverse action, like denying a job application, denying an employee a promotion or reassigning or terminating employment. If the employers check your credit report and decide to take adverse action; first, they must give you a pre-adverse action disclosure that includes a copy of your credit report and a copy of "A summary of your rights under the FCRA." The employer must give you notice orally, in writing or electronically that the action has been taken in an adverse action notice after taking the adverse action. This notice must include: the name, address, and phone number of the CRA that supplied the report, a statement that the CRA that supplied the report did not make the decision to take the adverse action and cannot give specific reasons for it and a notice of the individual's right to dispute the accuracy or completeness of any information the agency furnished, and his or her right to an additional free report from the agency upon request within 60 days. If you have experience in working in the banking credit and collections industry, you would know how important it is to have a good credit rating. You would also know that your spouse's bad credit can affect you negatively. In most states, once you are married, your financial histories merge as well. You should, therefore, know how your spouse's history can affect your credit rating, especially before you apply for employment. It is advisable to be a little more cautious about your credit report and keep on monitoring it, as your employer would also be doing the same. |
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