One of the most prevalent credit myths is that employers use credit scores as part of their pre-employment screening processes. It seems to have the nine lives of a cat, and then some. The media gets it wrong, expert witnesses get it wrong and politicians get it wrong. And while some of us know the truth – that credit reporting agencies do not sell credit scores along with their pre-employment credit reports – the incorrect notion that our credit scores influence employment decisions just won’t seem to die.
I recently interviewed Kristine Snyder, Public Relations Manager at Experian to find out exactly what information they package and deliver to employers…and what they don’t.
What is delivered to employers:
• Consumer identification, including Social Security number
• Address information, including length of time at current and previous addresses
• Employment information, providing insight regarding an applicant's previous work history
- It will list up to two places of employment
- Other names used, such as maiden names and aliases
• Public record information on bankruptcies, liens and judgments against the
applicant• Credit history providing an objective overview of how financial obligations are handled
• Demographics band (including driver's license and phone number verifications)
• Profile summary (including payment patterns)
What is not delivered to employers:
• Year of birth
• Spouse reference
• Account number information that is irrelevant to hiring decisions
• Credit score (read that again please….credit score is not included)
According to Snyder, “The report does not tell a potential employer whether to hire or promote an applicant. An employment report typically is used in addition to application information, references or skills testing, to help employers make the best, most objective hiring decision. If the employment report contains information that causes a potential employer concern, we encourage the employer to give the applicant an opportunity to clarify the issue.”
The evidence, at this point, is so overwhelming that any reference to credit scores being used for employment would seem to be irresponsible. Experian isn’t alone regarding the absence of credit scores in their employment reports. Both Equifax and TransUnion have also gone on record as saying they do not provide scores with their employment reports.
John Ulzheimer – Credit scoring and credit reporting expert and author, John is the President of Consumer Education for Credit.com. Formerly with Equifax and Fair Isaac, John shares his unique insight of the inner workings of credit scoring models and the credit reporting industry on CreditBloggers.com.
John Ulzheimer Formerly with Equifax and Fair Isaac, John shares his unique insight of the inner workings of credit scoring models and the credit reporting industry on Credit.com News & Advice.
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The problem is that as the “Credit scores in employment, Believers and Nonbelievers” list shows this so called Urban myth is actually being stated by no less then the United States Department of the Treasury, Federal Reserve, Attorney Generals of several states, Wall Street Journal, Better Business Bureau, Consumers Union, and Visa. I ask how can all of THEM be wrong?