You've spruced up your resume, ironed your best suit and rehearsed your interview answers. But have you checked your credit report?
A growing number of employers are asking to see prospective new-hires' credit files when determining who can be trusted to handle cash, clients' sensitive information, or valuable property.
You can prepare yourself by checking your credit report before you head out for your first interview. Make sure the information in your credit file is up-to-date before your future boss sees it.
Now, many employers use credit reports when screening for good character and they need your written consent to obtain a copy of your report.
What To Look At
Possible Inaccuracies: Are all the accounts listed on your report indeed yours? Are the listed payment histories accurate? If you've had a series of late payments, be prepared to talk about why that happened.
Inquiries: Multiple inquiries can be interpreted as a sign that you've had trouble obtaining credit. If you've been applying for a lot of new credit recently, then hold off applying for more.
Public Records: Items like bankruptcies and tax liens are listed in this area. If you have any notations, make sure they are accurate. You may also want to prepare an explanation for these items in advance, just in case your prospective employer inquires.
Your total credit picture: Do you owe a lot of money? Or, on the other hand, have you been responsible with credit? Be prepared to explain the circumstances surrounding a series of late payments, such as losing a job or family illness. Or, be ready to discuss your positive payment history as a strength that could help you get the job.
Disputing Possible Inaccuracies
So what happens if an unfamiliar account or inaccurate payment history shows up on your report? It's up to you to contact the creditor and credit reporting company that provided your credit report and dispute the notation.
It can take up to 30 days for the dispute process. If your interview is a couple weeks away, then you may want to tell your employer that you're disputing a particular item if s/he questions you about it.
