Credit Report News, Tips & Advice
Website CertifiedPrivacy Protected

Reports Pulled Out to Prevent Fraud

By Faye Mergel
Published: Monday, September 7th, 2009

Before, government employees are the only ones who get their debt management scrutinized. Now, every person who sends in a resume should expect his account in the CRAs to be checked.

Reports Pulled Out to Prevent FraudA bad credit report can mean a job lost. The trend of many employers these days is to check on the bureaus before accepting an applicant. This practice is taking its toll on many honest job seekers who are not accepted because of poor credit information. However, the problem goes back to other work hunters themselves.

Diane Stafford, a columnist and employment expert, says that many applicants claim degrees which they do not really have. Others inflate their positions notches higher from their previous work experiences. The fraud and misrepresentations that some corporate aspirants place on their resume cause employers to be more skeptical during the hiring process. Hence, they turn to Equifax, Experian, TransUnion, and other credit reporting agencies (CRAs) for verification. Pulling out reports is one way for employers to make sure that their candidates are as worthy as they claim.

A credit report contains a person’s name (and name variations), address, Social Security number, phone number, and date of birth. However, employers are not after those things, although those are helpful in verification. What they are interested in is the employment history that is enumerated in a person’s account.

Many companies, particularly those which handle money and fiduciary activities, believe that the way a person handles his debts determines how responsible he is. Human resource experts explain this attitude of employers. They say that companies do not want to entrust their business to someone who cannot handle his own debt.  

However, companies will not waste their time checking hundreds of accounts. They only go to CRAs for work aspirants who are in the short list. This means that anyone who gets his credit report checked is a viable candidate.
When a candidate is rejected, a company must do two things:
• Provide the person a copy of his report and explanations of his rights under the Fair Credit Reporting Act.
• Notify the person which CRA provided the information and that he has the right to dispute his account.

Employment specialists advise people looking for work to keep their debt papers as neat as their resumes. Work aspirants must take extra measures to improve their debt standing before facing employers. They should avoid defaulting loans and paying late. They are also advised to think twice before applying for a loan since CRAs record everything: even those debt applications that are rejected.

No Comments

No comments yet.

RSS feed for comments on this post.

Sorry, the comment form is closed at this time.