Owing to the pandemic, Sharon's e-commerce business has a skyrocketing growth and was in turn acquired by a major company. But she is worried that her new parent company is very strict about following regulations, one of which is the credit report evaluation of job candidates. Sharon's credit score runs so low that she can't even apply for a credit card. The constant fear that her parent company might check the credit reports of all of its current employees drives her mad, not only fearing her superior in the group may scold her, or worse still, she, the leader of her e-commerce business will lose face big time if her colossal debts are made known to everyone!
In fact, just with some simply digging, Sharon would have found out there is actually nothing to worry about. In the case of employment credit check, you can have it done yourself, or else other persons or institutions must have your authorization and consent beforehand.
Under What Circumstances Are You Required to Authorize a Credit Check?
When you are filling out the application form for a credit card, mortgage, loan, and whatnot, it mostly comes with a clause that requires an authorization for credit check, in order to shed light on your credit status. The same may happen to job candidates in more and more industries that look for high integrity, such as finance, security, and disciplined service, or job roles that deal with financial and sensitive data. More commonly known, immigration authorities in the US, the UK, Australia, and parts of Europe may request an immigrant to submit her/his credit report.
However, it is worth noting that there are separate versions of credit report between your own copy and the authorized parties'. Your copy will include all your information, whereas the one the third party has does not contain sensitive information such as credit card numbers. To this end, when companies ask for your own copy, you should therefore be very wary of whether such action poses a risk of data leakage.
However, it is worth noting that the credit report you request and the one requested by an authorized party, such as your employer is different. Your personal information will be revealed on your copy, but masked on your employer’s copy, e.g. on the latter credit card numbers are not visible. To this end, when companies ask for your own copy, you should be extra wary of whether such action poses a risk of data leakage.
Boost Your Credit Score Before It's Too Late
In short, you can check your credit report anytime and it is basically impossible for an unauthorized third party to obtain your credit report, you can rest assured in this regard. However, poor credit scores can stand in your way, with adverse effects ranging from credit card application declines, much like Sharon, to career path and immigration plans.
Do take your credit score seriously and take the initiative to have your monitor your credit regularly and improve it one step at a time. With a healthy credit rating under your belt, it will save you from many hassles at critical times.
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