If you are looking for a job, then free credit report is very essential. Good Credit reports and credit scores can help you to grab a lucrative job in US; since they are counted in case of your application and employment. However, you can lose this opportunity if your credit reports are poor. On top of it, you might be not aware of your credit status! It can be the case, as people are bit ignorant towards free credit report, which can be ordered annually.
Running Credit Checks on Employees
Discussion over companies, which operate credit checks of their capable employees, is still going on. According to authorities of corporation, credit checks reveal the capacity of employee to deal with workload and Finance management. On the other hand, employees are quite unhappy about this assessment factor.
Credit scores can be affected by various genuine reasons, like heavy medical bills, which cannot be notified in advance. Some employees may not be able to make such payments on time, and it reflects on their credit report and ruins it. So, judging employees’ skill of handling finances and workload management, by their credit reports, is bit unfair and unreasonable.
In spite of all these factors, credit checks of employers surely warn employees, who can probably commit fraud to survive in financial crisis.
As stated by Carla Morelli, it’s beneficial to have identities, checkbooks and credit scores of employees as it helps in hiring the best amongst all applicants. Carla Morelli is the owner of FreyerMartin, a personal bill-paying service company. Along with analysis of credit scores in hiring process, FreyerMartin also have a look on their employees’ credit reports by year or two. Like FreyerMartin, other companies also carry out credit checks. It helps them to assess their potential employees.
Equal Employment for All Act
Employing applicants on the basis of their credit reports is illegal according to the ‘Equal Employment for All Act’. This law has been passed and it says, the conduction of credit checks on employee, while appointing him, is illicit. As said by Elizabeth Cohee, lawyer of California, one should not worry about credit checks if there is no objectionable activities are involved.
On the whole, taking a quick glance over your free credit report is always advised. By ordering your credit report, you will be aware of your credit scores and financial issues. So, if employer wants to insspect your credit report, you won’t be surprised with outcome.