In today’s consumer-driven society, credit scores are important. Despite auto title loan lenders not considering a borrower’s credit직장인대출 history; most other creditors consider the borrower’s “creditworthiness” when granting them a loan. FICO scores are known as these numbers.
Have you ever considered the possibility that a potential employer might check your credit history as well during the hiring process? In the U.S. about half of the population believes that it is illegal for a prospective employer to run a credit check on a potential employee. A person’s credit score is often considered by employers as a determining factor of what kind of employee they will be. An employer will evaluate an employee’s credit report for the following character traits: responsibility, accountability, and honesty.
Based on how someone handles their financial obligations, an employer may draw conclusions about their ability to be responsible at work. The management of an employee’s finances can be viewed as a barometer of how well that person will manage other responsibilities at work.
In considering a credit score, one may take into account “citizenship behavior” and “task performance.” Furthermore, an individual’s attitude toward agreement can influence their credit score. In other words, it appears that avoiding conflict is less likely to result in a high credit rating; meaning someone who doesn’t walk away from financial obligations but instead handles them.
Many employers in the financial sector and others who deal with money rely on credit reports to assess whether an employee is likely to commit fraud. In case of an employee having access to money and being in debt, the temptation to commit fraud or theft will likely be more intense for that employee. Although there is no evidence that credit scores can predict false positives or counterproductive work, they can predict the possibility of theft.
An employer can also verify an applicant’s employment history and other crucial information about a potential employee, such as the individual’s social security number, with a credit report. The Employee Opportunity Act protects certain types of information, such as certain work history information, from being shared with employers. Some credit bureaus offer an employer-only credit report which gives them certain information but denies some information. Birth dates and account numbers of credit cards and banks are among the information listed here.
Employers that conduct credit checks on prospective employees must follow the legal requirements set out in the federal Fair Credit Reporting Act (FCRA). Under the federal Fair Credit Reporting Act, employers must:
- Pull the report only with the consent of the prospective employee
- In the case that the employer plans to reject you based on what’s in the report, provide the potential employee with a warning and a copy of the report
A report can lead to your employer choosing not to hire you, in which case they will give you an official adverse action notice.
Your payment history with auto title loan lenders will not impact your credit report and score since they do not require your credit history when you apply for a loan. However, even if you pay your auto title loan back on time, your lender will not report your late payment to the credit bureaus if you become late or default. Don’t forget that you can lose your car if you don’t repay your auto title loan, and that a third party collector might report the fact that you don’t repay it.