The information in free credit reports has become much more connected to your everyday life.
What's in your report can affect not just your ability to get credit, but where you live, who you
work for and how much you pay for insurance. Employers often rely on a credit report when they
hire, promote or reassign employees. So an error that you find in free credit reports, even if it's
small, can hurt you in a number of ways, especially in employment.
It's easy for you to see what's in your free credit reports, but the Fair Credit Reporting
Act(FCRA) sets the requirements an employer must follow to see your report. An employer
is required to get your written permission before seeing your report. And if you are denied a job
because of something in your credit report, the employer is required to tell you that was the
reason.
The importance of having good credit doesn't disappear if you're seeking a higher paying
job, in one way it gets worse. Normally most negative entries you see in your free credit
reports can remain no more than 7 years or 10 years for bankruptcies. But if you're applying
for a job with a salary of $75,000 or more, negative items can be included indefinitely.
So if there are any errors you spot in your free credit reports, taking care of them now will
eliminate the chance of them causing you problems later. The FCRA also can help you if someone
did get a copy of your credit report which had an error. After getting an error corrected, you
can ask the credit bureau to send the updated information to any employer who requested your
credit report in the last two years or any creditor in the last six months.
It's good to be aware of the section in your free credit reports that lists who has
requested a copy of your report within the last year, or two years if it was an employer. So
if having the names of some employers show up in your report would cause problems, be careful
who you authorize to check your credit. Also it's not advisable to casually apply to too many
companies, as employers and creditors will view this as sign you have difficulty in getting a
job.
To get your free credit reports and free 30 days of credit monitoring, please go to
free instant credit reports.
