3 Common Myths About Credit Report Checks by Employers

The current job market is full of high competition. With the stakes as intense as they are, it’s easy to feel nervous about any background checks your potential employer might perform. That said, there’s a lot of misinformation out there about the purpose and process of employer credit reports. Don’t stress for no reason. The more you know about why employers check credit and how they use the information they find, the more confident you’ll feel about your job hunt. Learn the truth as we bust these three common myths about credit report checks by employers.

Myth: Employers Check Credit on All Candidates

Credit reports are common parts of background checks, but businesses don’t usually require them for all candidates. Of course, if the job in question involves handling finances, a credit report will likely be part of the recruitment process. However, for positions that have nothing to do with finance or managing company assets, many employers consider a credit report to be far less important. Even in companies that do perform credit checks across the board, this step usually doesn’t occur until late in the recruitment process, at which point your credit score isn’t the end-all, be-all of the hiring decision.

Myth: Bad Credit Is the End of Your Job Search

This is one of the most common myths about credit report checks by employers. Employers should offer candidates a fair chance to explain the information in their credit reports. Of course, it’s always better to announce any disclaimers as soon as possible. If you know a credit report is coming, talk to your potential employers about what they might find. Keep in mind that one mistake won’t be an automatic disqualifier, especially if you can talk about how you’ve grown and improved since the experience.

Myth: Employers and Lenders Use the Same Credit Evaluations

Credit lenders lean heavily on credit reports, but for employers, this is just one aspect of a broader screening process. Moreover, employers don’t look at your actual credit score. Instead, they receive a comprehensive overview of your credit history, including information such as past employment, insurance, and legal activity. This wider approach means employers get a more thorough look at your overall credit history. You might have to explain older incidents as a result, but this also means your potential employer gets a more accurate view of your financial habits through the years.

No part of the background check process should be intimidating—for employees or employers. Get the thorough, accurate, and reliable background investigation services you need to hire a team that will bring nothing but success to your business.