I have been applying for work at employment agencies. They want my permission to conduct a credit check. My concern is that I was told in the past that if too many people are doing credit checks on me, it signifies a problem and can reduce my credit scores. Is that true?
Checking your credit history for employment purposes will not affect your credit scores.
When your credit report is requested for employment purposes it generates an inquiry. However, that inquiry is shown only to you on your personal credit report. It is not shared with lenders or other businesses and is not included in credit score calculations.
Likewise, employment inquiries are not shared with other employers, so you do not need to be concerned about repercussions from your current employer if you are in the midst of a job search.
It is also important to understand that credit scores are never used for employment purposes. Employers often review your credit report’s identification history to verify your identity and look for signs of application fraud. And, for some positions, your ability to manage your personal finances may be considered as one factor in the hiring decision, along with your work history and references.
Thanks for asking.
– The “Ask Experian” team