Credit Report Errors Can Hurt Your Interview Chances

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These days, just getting invited for a job interview can be a big deal. However, many employers are using background checking, including credit checks, on prospective employees before the interview. Depending on the candidate's criminal history, background and credit, the employer may rule them out before they have had the chance to sit down and talk.

 

It's frightening to think that your job chances can hinge on what information an employer receives about you from a background-check company or a credit-reporting agency. What's even more disturbing is that according to a recent report from the Federal Trade Commission, there are widespread errors on consumer credit reports – errors that could prevent good people from getting hired.

 

The report revealed that an alarming 42 million credit reports contain errors that negatively impact consumer credit ratings. This isn't the first time that the credit reporting system has been under scrutiny. In 2004, the National Association of Public Interest Research Groups found that a staggering 79 percent of credit reports contain errors. If that wasn't enough to raise eyebrows, the news program, 60 Minutes aired a scathing report about how common these errors are and how difficult they are to be removed.

 

It's disturbing how many serious errors there are, because for most of us, all we have to recommend ourselves to banks, mortgage lenders, landlords and even employers is our good name. When incorrect information is difficult to find and remove, we may get turned down for a home loan, denied credit, be unable to rent an apartment or find a job.

 

The three major credit reporting agencies, Trans Union, Experian and Equifax, keep credit information on over 200 million Americans. Although there are plenty of websites online that offer free credit reports but charge a monthly fee, you are entitled to one free copy of your credit report from each of these credit reporting agencies every year. If you haven't gotten your free report, you can easily do so at annualcreditreport.com or similar sites. (Just be wary of any sites charging fees or automatic payments. You don't have to pay if you don't want to, or if you decline after any trial period.)

 

To protect yourself and your chances at a great job, take a look at your credit report and make sure that there aren't any errors that could be negatively impacting your overall credit score. If you aren't sure how to go about it, the NCLC offers a great step by step overview that you can view here.

 

If you find that your report contains errors, you can report them here and try to have them corrected. Most people find that once they take the steps to correct the errors that their credit reports and their FICO credit scores improve dramatically.

 

Have you ever had an employer check your credit report? Please share your thoughts in the comments.

 

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  • Janette P
    Janette P •
    Really the only folks who stress about criminal background checks are the ones who have a fuzzy past.
  • Beverly B
    Beverly B •
    Without social security numbers, no credit reports can be obtained. Don't give SS# on employment applications.
  • Freddy N
    Freddy N •
    I think this is discrimination. It is very unfair. You have hard working people that has been thru tough times in their lives, and they are judged by company's. a person should be judged by their work performance and not by how much money they owe to a bill collector. THIS SHOULD BE AGAINST THE LAW. I went thru a divorce that destroyed my credit. I will take me years to get it all cleaned up. Some company's won't hire anyone that has filed bankrupt. That should TOTALLY be against the law. That's why there are bankrupt laws. To start your life over and clean your credit up. I think the Government needs create a legislative law to protect hard working Americans from company's judging people by their credit report. I think these company's should be sued by people for discrimination. THIS IS EXACTLY WHAT IS HAPPENING. These company's are actually holding good, honest, hard working people from getting good jobs in America.
  • Deborah K
    Deborah K •
    I believe I'm a victim of negative credit reporting. Victim in the sense that since my husband died in 2003, I cannot get a good paying job to pay the bills. I've moved and tried in different states with no success. My rating gets worse because any money made is for the immediate need of food, gas, and housing. Why am I being denied a good job so I can get out of debt?  It's terribly unfair.  I'm out of work right now, been looking for 4 months could it be this credit checking again?  Will my only alternative be welfare?
  • Carolyn A
    Carolyn A •
    This is really critical.  My background check had a court action for someone else by the same name in my community who had been evicted from an apartment complex and had never paid their debt.  Review what is on your record!  Not sure how these mistakes happen, but they take a lot of perseverence to resolve.
  • thierry L
    thierry L •
    My only concerns about this article is the legality of these procedures. Since when corporations rule our lives and how it became legal. Our government is supposed to protect US its people from this kind of behaviors. I do understand the necessity of a drug screening but in this recession where people have lost their jobs and houses I do not think that a credit report  is the right thing to do.

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