You survived the interviews. You deftly explained where you see yourself in five years. You managed to sparkle even when you talked about your greatest weakness.
Now there’s just one thing standing between you and your dream job: a credit check.
But what happens when you have a lackluster credit score? Will past missteps haunt your career prospects for years to come?
What Shows up on a Credit Check for Employment?
First the good news: Employers don’t see your credit score when they run your credit. Instead they see a modified version of your credit report.
Here’s what appears:
Open accounts with the account numbers redacted Payment history Outstanding balances Amount of open credit Accounts in collections Bankruptcies from the past seven to 10 years, depending on the type of bankruptcy Foreclosures from the past seven years
Now here’s the bad news: The things employers look for when they check your credit — primarily negative payment history or a high credit utilization ratio — are the top two factors that can crush your credit score.
So if you have a low credit score, your credit report will probably have information that could be a red flag to employers.
If a company does check your credit for hiring purposes, you don’t have to worry that your score will be affected. The pull is what’s known as a soft check, which has no impact on your score. A hard check, which occurs when you apply for credit, can ding
