Pull Free Credit Report Before Applying for Job: FTC

The Federal Trade Commission today is reminding consumers to get their free credit report from the three bureaus before applying for a job.
That’s because employers may look at your credit history as part of their screening process.
Companies are looking at credit profiles to get a fuller picture of a prospective hire’s character, but consumer advocates say this is not fair, particularly in a tough economy and an ongoing foreclosure crisis.
Several states have or are considering legislation to curb the practice of pulling a prospective employee’s credit report as a consideration for hiring.
One recent survey found that 60 percent of employers use the reports to help evaluate at least some job applicants.
Consumer advocates say there is no proven connection between a person’s credit history and the individual’s ability to perform a job.
The Consumer Financial Protection Bureau is preparing to provide the first U.S. agency oversight over the credit reporting industry, including the three primary credit bureaus –  Experian, Equifax and TransUnion ­– and other lesser-known agencies.
It is uncertain if the bureau will seek to place limits on the distribution of consumer credit files to employers as a part of a job screening process.
The Federal Trade Commission, the nation’s consumer protection agency, reminds job seekers that they can get a free copy of their credit report at annualcreditreport.com or 1-877-322-8228, so that they can fix any mistakes they find, or explain information that might not look good to an employer.
To learn more your rights as a job applicant, read the FTC’s What to Know When You Look for a Job.

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