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Employment

Credit Scores Not Impacted by Employer or Income

Dear Experian,

It appears all three credit reporting agencies had listed my employer incorrectly. What impact does my correct employment and earnings have on my credit rating?

-RCH

Dear RCH,

Neither your income nor your employer have any impact on your credit scores. You may see a list of employer names in the identifying information section of your credit report. However, your income is never part of your credit report.

None of your identifying information, such as your name, address, and employer, is included in credit score calculations. However, lenders may take income and the fact that you are employed into consideration, along with your credit history and credit scores.

Employment Information on Your Credit Report

The list of employers in your credit report is not meant to be a complete list of your employment history. Instead, the list acts as another identity verification tool.

You might not see all of your employers listed because employment is typically only updated when you apply for a new account. When you complete an application, you are usually asked to list your current employer. The employer you provide is often included with other application information about your identity when the new account is reported to Experian.

If you have changed jobs since the last time you applied for credit, that new information wouldn't be reported to Experian by your current creditors because they wouldn't be aware of the change.

If you feel the employment information listed on your credit report is incorrect, you can dispute it online directly with Experian.

Income Is Not Listed on Your Report

Income is not part of your credit history and is not included in your credit score. Instead, you provide that information to your lender when you complete a credit application. Your lender uses that information to perform a separate evaluation of your ability to repay the debt.

Thanks for asking.
Jennifer White, Consumer Education Specialist

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