How what’s on your credit report can affect job applications

looking-for-jobAre you looking for a new job? Job searching can be a frustrating and lengthy process, but exciting nonetheless, as it’s a chance to take another step along your career path.

Whether you’re new to the working world, thinking about a career change or searching for your next career advancement, going for a new job can feel like a daunting task, depending on the amount of information that the company is asking for.

It’s possible employers may ask for permission to access your credit report. This isn’t always the case and may depend on the type of job you’re going for. It would also be natural to wonder why they need such information.

It’s a good idea to be on top of your credit report, as it holds information such as whether you keep up to date with payments on loans and credit cards, the total level of credit that you already have, and how much of that you are using. It also includes details of any bankruptcies and county court judgments against you.

If your job involves handling large amounts of money, a company may prefer not to employ people who have a poor history of managing their own money.

This may seem unfair, but employers can often make quick snap decisions when faced with hundreds of CVs, so it’s best to ensure you put yourself in the best position possible for sealing the job you want.

Here are a couple of things worth keeping in mind:

  • Employers must have your permission to view your credit report. You have every right to say ‘no’ however this may affect your chances of landing the job.
  • Employers simply look at certain factors that are important to them, unlike when you apply for credit.

If you think you might be asked for a credit report when making a job application, then it would probably be beneficial to access your report and see where you can make any improvements.

Small things such as a good credit report can make the difference between getting a dream job or not, so why not make the small effort and give yourself the chance of nailing that dream job you deserve.

Written by Nicholas Gibbins  

14 thoughts on “How what’s on your credit report can affect job applications

  1. Jason

    Hang on, under WHAT circumstance is it acceptable for a potential employer (I.e. Someone with whom you have no formal relationship) to ask to access your credit record?

    Reply
    1. Neil Stone

      Hi Jason, thanks for your comment.
      It is mostly people working in the financial industry who would be asked for a check as a potential employee, due to the nature of their work. They can only perform this check with the consent of the applicant, so it’s something that they would need to make you aware of during the application process.
      Kind regards
      CreditExpert Neil

      Reply
      1. Steve Porter

        So this affects a few people?could it just be that Experian are scaremongering in order to wring a few more pounds out of what they believe to be a gullable public?I think so .

        Reply
  2. Duncan

    It actually affects every industry in California. I am a network engineer and I get my credit check all the time if i want a job. That doesn’t mean financial industries it can be either mom and pop to enterprise level. Its another reason to eliminate people or give a reason for not to hire. Another thing to my wife is a nurse she gets credit check also when she applies for a job so this article isn’t base on financial or certain people its going to be everyone.

    Reply
    1. CreditExpert Neil

      Hi Andrew thanks for your question. With the Experian Credit Score 721-880 is considered fair. When you apply for a job then in most cases if the company performs a background check they would not see your credit score or your full report. If you are applying for a job in the financial sector they may request to perform a full credit check but they still would not see your Experian Credit Score, although they may use their own method of scoring. You can find out more about the Experian score banding here. Kind regards Neil.

      Reply
  3. Jack

    I’ve been with my company for a few months and now they want a background check. However I moved out of my mums over a year ago and haven’t changed addresses with the bank or anyone else. Will that affect a credit or background check?

    Reply
    1. CreditExpert Neil

      Hi Jack, if the company is performing a background check rather than a full credit check then it would only see public record information such as electoral roll details and any judgment information. It is usually only in the financial industry that a company would ask to perform a full credit check. It is always up to the company as to what they are prepared to accept, if they can’t find any record of you at your current address then may need you to provide additional information for them. Kind regards Neil.

      Reply
  4. nicolle johnson

    hiya i have applied for a job at rbs at a cal center i have the job subject to credit check, however my report comes up as poor but on others steady and in the orange, i have 7 positives and just 2 negatives about not having a credit card and the electoral role i have now applied for the electoral role online. i have no court or any other things on my report, and have long time payments on my report which are on my positives. do you have to be in the green to pass a pre employment credit check?

    Reply
    1. CreditExpert Neil

      Hi Nicolle, it will always be up to the employer as to what they are prepared to accept when making a check. However we would expect that they would be looking for negative financial information such as defaulted accounts or county court judgments. I hope this helps and wish you all the best with you application. Kind regards Neil.

      Reply
  5. Kat Clarke

    Hi
    I have been offered a job with a major financial institution and my credit report is excellent (I have a 999 score) with no negative points, no defaults no CCJs etc. However my partner has a poor score due to no previous credit, could this affect my application as we are associated. Many thanks Kat

    Reply
    1. CreditExpert Neil

      Hi Kat, a financial institution may ask for permission to perform a full credit check on you as part of their application process and so could potentially see information relating to your financial associate. However it would then be up to the company themselves if they were to take this into account. If the company were just carrying out a background check they would not see your associates information. Kind regards Neil

      Reply
  6. K Fletcher

    Hi
    I have several defaults which I paid off in 2016. I understand that these will appear on my credit file for 6 years (so until 2020 or 2021) however, I am concerned about applying for future contracting roles, particularly in the financial sector.. Is there anything Experian can do to intervene – like put a flag on someones file?

    Currently I am rated as ‘Fair’

    Thanks

    Reply
    1. CreditExpert Neil

      Hi, sadly the defaults will stay on your credit report for six years after this they will be removed from your report automatically.
      You can however add a “notice of correction” to your credit report to explain how the defaults occurred, which any companies searching your report will see and can then take into account.
      Adding the notice would not change your score, and as the defaults get older they will have less of an impact.
      Kind regards
      Neil

      Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

Current day month ye@r *