Your credit and employment are intertwined.  If you’re one of the many scouting new employment opportunities, add one more step to your to-do list when you apply. Consider checking your credit.  Your credit rating will have an impact on the employers final decision. So in addition to the unique cover letter, a professional resume, and good interview skills, you need to be on top of your credit.

Here are four ways your credit and employment are connected

An Employer Can’t Just Pull Your Credit

When it comes to credit and employment, employers have certain rules to abide by.  The Fair Credit Report Act limits how and when your credit is accessed.  According to the FCRA, your employer must first have your consent to access your credit information.

Employers Don’t See Your Full Credit Report or Credit Score

When an employer requests access to your credit information they will get a modified version of your full credit report.  While most of the information of your credit history will be the same, your actual credit score will be omitted.

Why Your Credit Report Might Matter

According to credit reporting service Experian, employers in industries like defense, pharmaceutical or financial services, are the ones that most commonly request credit reports.

Credit information can also be used by a company to better understand if a candidate is reliable, trustworthy, and responsible.  A history of delinquent behavior could lead to an employer denying you employment.  For this reason, employment and credit are essential to one another.

Why Credit and Employment May Not Matter

When you apply for a new job, know that an employer has the option to obtain your credit report.  Just keep in mind that some dings in your credit history won’t keep you from landing your dream job. With that being said, it’s still a good idea to check your credit report regularly to ensure there aren’t any errors.