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Credit Score - Employment Opportunities

Essay by   •  July 31, 2011  •  Essay  •  957 Words (4 Pages)  •  1,842 Views

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Your credit score can affect your employment opportunities. When applying for a job, contenders have to go through a process which includes: reference checks, background checks, drug screening, and credit checks. Many employers may call this the pre-employment screening. With the condition of today's economy, jobseekers have many people competing for a single position. The pre-employment screening makes it easier to narrow down the gap amongst qualified applicants. Reference verification, criminal background checks, and drug screenings have been a part of the employment process for years. Not only will applicants have to meet specific job qualifications; they must also past their background, reference and credit checks

Reference checks are performed mainly to validate what was discussed during the interview. It helps managers determine if the candidate is a good fit for the job. Criminal background checks are done to make sure that job hunters do not have a history of criminal activity along with eliminating the employer from having any surprises to come up later during ones employment term with the company. Finally, drug screenings are done to prevent an employer from hiring individuals with addictions to narcotics and other illegal substances. The aforementioned are very important and understandable when applying for a job, but why do employers need to check an applicant or potential applicant's credit history?

When reviewing a credit report one would be surprised to find how much personal information is disclosed. The credit report contains the following: alias names, current, and previous addresses. Consumer Credit Reports, also, reveal applicants social security number, date of birth, and their employment history.

Next, one would observe information about credit cards, loans, bankruptcies and/or foreclosures. Credit Reports expose detail payment history for every account that has been opened such as; total original and current loan amounts, the number of delinquencies, how many times consumers have or have not paid, and if they are current or delinquent on monthly payments. Accounts that have been closed, in-active, and new account inquiries are revealed to agencies investigating ones' credit history.

Public information is also listed on credit reports. Public information may include but not limited to judgments, liens, back child support etc. This information is reflected as negative information on credit reports. Finally, if requested credit reports reveals applicant's credit scores. Agencies take all this information into account to help determine their final decision.

Having bad credit history and a low credit score does not mean that interviewees are unreliable people. Individuals fall into hard times for several reasons. Mistakes happen to everyone however; employers should not base their decision solely on a person's credit history or overlook a candidate because of their credit ratings. It would be logical for employers to do a detailed investigation such as ask applicants the



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