Credit Checks and Paychecks:

Can blemishes on your credit report really cost you that dream job?

According to the Society for Human Resource Management, 6 out of 10 private employers check the credit histories of their job applicants.

One in four unemployed Americans have been through a credit check when applying for a job.

And One in ten have been denied jobs due to information in their credit report, according to a survey done by Demos.

But Why?

These credit checks are conducted for job seekers applying for positions with financial responsibility, executives and for those positions with access to highly confidential employee information.

Employer credit checks prevent job seekers from gaining employment. As reported by Demos, more often than not, bad credit is a result of unemployment and loss of medical benefits.

And there have been government studies that prove the credit bureau have made their fair share of errors.

So how can you be sure that you won’t miss out on a great opportunity because of that unpaid doctors bill?

The good news Is that you can be proactive about the situation.

Be sure to always be aware of your credit score and the items that it reports!

This way, if there is a minor blemish, you can have an explanation ready. Most companies will simply overlook the smaller less complex derogatory marks.


Boost your credit score! And be sure to check for mistakes and questionable items. Sites like can provide you with a free credit report from the three major consumer credit reporting agencies–Experian, Equifax and TransUnion.


And don’t forget to protect yourself! Keep in mind that anytime a company conducts a credit check, they must inform you and get your permission in writing. And there is always a risk in obtaining such sensitive material. And although according to federal law, these credit checks are legal. Some states such as California, Washington, Oregon, Hawaii, Illinois, Maryland and Connecticut are not having it. They have set laws in place to cut down on employer credit check abuse.

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