Prepare in advance for employers checking credit reports

For many with a bad credit history, getting back on the right track can be stressful. It doesn’t help that in today’s competitive job environment, those applying for a new position may find their credit score checked along with their resume.

Hirers are increasingly looking at credit reports as a factor in a hiring decision, according to USA Today. The Society for Human Resource Management reports that 13 percent of employers look at a credit report for all job applicants, while nearly half use credit score as a tool for select positions, like those related to managing money or senior executives.

Consumer advocates say that this practice is self-defeating and hurts the economy. People with bad credit are in that situation because they don’t have a job, but can’t get a job because they have bad credit. Regardless, with many people applying for the same position, employers will use whatever they can to separate the field of candidates.

The news source recommends that job-hunters be prepared for this when applying. Under the Fair Credit Reporting Act, employers are required to notify the employee before they run a credit check. This is a good chance for job-seekers to be upfront about any negative marks on their report. It helps to check one’s report ahead of time and make sure it is accurate, as well.