The Jobs Free Forum

Ever thought a bad credit score could prevent you from getting a job?  It can. Worse yet, what if your bad credit is a result of identity theft?

According to the FBI, identity theft tops the list of fraudulent activities online. Plus, the U.S. Federal Trade Commission (FTC) says that identity theft is its number one source of consumer complaints.

Who’s looking? Are you?

Knowing what’s on your credit report and what recruiters might see is vital to being able to protect your identity and your future hire-ability.   Job seekers are also encouraged to conduct a personal background check on themselves at sites like TransparentMe.com.

Dr. Richard B. Weinblatt, EdD, MPA, the former Director of the Institute for Public Safety for Central Ohio Technical College and an ex-police chief, says applicants should worry about their credit histories and FICO scores because recruiters may be researching the financial aspect of your life. 

A recent Society of Human Resource Management survey showed 60 percent of employers said they run credit checks on all or some potential new hires. That’s up from 43 percent in 2006 and 25 percent in 1998.

What motivates employers to check credit reports?

• Speed up the application process
• Verify employment, Social Security number and relocation history
• Get a better picture of the person they’re hiring
• Compare and contrast candidates for the same position
• Confirm income and employment history against potential credit problems that show up on a report

In Weinblatt’s PoliceLink.com article Getting Hired: It’s About the Patterns, he says recruiters look for patterns of both responsibility and irresponsibility—similar to the way your FICO score is determined.

Jobseeker’s Rights

The Fair Credit Reporting Act governs almost all issues related to the use of credit reports. Job applicants have the right to a copy of their credit report, and the law requires the hiring entity to provide a copy to the job applicant. In addition, if an employer decides not to hire a candidate based on the results of a credit report, the candidate must be told the reason why and be provided with the credit report information.

Laws that limit an employer’s use of credit reports in hiring decisions have been passed in Hawaii, Oregon and Washington. Similar legislation passed recently in Illinois is headed to the governor. The laws would make it illegal for employers to access credit history unless they can show that it’s relevant to job responsibilities, such as handling money or having access to customers’ financial information.

If you’ve been a victim of identity theft, here are two useful resources:

The FTC maintains Consumer Sentinels Identity Theft Data Clearinghouse, the nation’s repository for identity theft complaints. The FTC established the Identity Theft Toll-Free Hotline, 1.877.IDTHEFT (1.877.438.4338) and the ID Theft Website (www.consumer.gov/idtheft) to give identity theft victims a central place to report their problems and receive helpful information.

The Internet Fraud Complaint Center (IFCC) is a partnership between the Federal Bureau of Investigation (FBI) and the National White Collar Crime Center (NW3C). You can use their online system to file a complaint.

If your credit report isn’t perfect, there are a few things you can do:

• U.S. residents can visit the Federal Trade Commission’s website to learn step-by-step how to dispute and correct the error.
• If a potential employer asks to screen a credit report, be pro-active and address potential problems on your report.
• Prepare for the future and review your credit report once a month and consider using a credit monitoring service to alert you about possible hazards or fraud attempts on your credit.