When applying for a job, there are a few things you are taught to expect: the initial email and call to begin the screening process, then an official interview with more in-depth questions based on your potential role, work experience, and history as an employee. Screening resumes is also an expected factor, but whether your potential employer is also checking your credit history is just as valid a concern.
Statistically, the reality is that job seekers who have had an initial interview only have a 37 percent chance of receiving a job offer. With those odds, it’s best to know every aspect of screening you might face. So, let’s dive into the most common questions regarding employers pulling soft credit checks.
Will Companies Pull a Soft Credit Check on You?
Legally speaking, employers are allowed to pull a soft credit check on you except in New York City. Certain states only allow employers to make an inquiry if the candidate is informed before doing so. It’s best to check your state’s most updated legislation on this to see if you fall under the umbrella that allows for credit to be part of the screening process. Whether or not the employer will actually pull an inquiry depends on the company and the nature of your potential role.
A soft credit check doesn’t affect your credit score in any way, so there’s no real harm this can do to you aside from revealing if you have some liabilities or poor financial decisions. Since the inquiry is quite comprehensive, it should also provide data on your debts and payables, along with how regularly you pay them back. If you pay all of your bills and loans on time, this shouldn’t pose a problem.
One more thing to note is that soft credit checks do not show up on your credit report. While this can be good in terms of future inquiries, it also means that you won’t have any way of knowing if a credit check was pulled on you unless you have been explicitly told.
Can a New Employer See Your Credit Report?
Credit reports aren’t just readily available for anyone to look at. That said, it can be procured by simply requesting a soft credit check. Should your potential employer’s HR department or management deem it necessary, they are allowed to pull a soft credit check during the pre-employment process.
Of course, soft credit checks at an employer’s disposal won’t contain all the details. For one, they cannot see your actual credit score. Instead, they can see various data in your credit report that show your financial history and can be a good way to deduce what your credit standing may be.
How a Credit Check Affects Your Hiring Potential
Companies will usually pull a credit check as an added screening tool, particularly if the industry is related to finance. After all, your personal choices regarding your own finances can reflect how you would handle things on the job.
On top of that, employers want to get a pretty good picture of your character and living situation. They can easily check if you have a tendency to pay your bills late or if you have taken on too much debt. It also gives some good insight into your priorities, skills, and responsibility.
Finally, it’s also a good way to measure transparency. The last thing you want to do is lie to your potential employer regarding this aspect. Statements that contradict the data from your credit check can be a big red flag for hirers.
More than simply telling the truth, though, you also want to get ahead and shape the narrative in your favor. It’s all about advocating for yourself. This is especially helpful for those with little to no relevant positions in their resume.
When thinking of how to get them to hire you without experience, one of the most helpful factors is having relevant individuals and resources that can advocate for your potential even without specific work experience. The coverage should be well-rounded from industry experts who can vouch for you to records that show your capacity to attend to your obligations.
