Free Annual Credit Report

We expect credit card issuers and other lenders to conduct a credit check before approving an application. But employers? Insurance companies?
What could your credit history have to do with job performance or insurability? A lot, say the companies that do pre-employment and pre-issuance
(of insurance policies) screening. In fact, tens of thousands of employers review credit reports as part of evaluating a job candidate. Employers
use this information to judge financial honesty and integrity, as well as the risk of bribery of people with a lot of debt. And, once you’re hired, employers can use the report for just about anything related to the job, including promotion and reassignment decisions. Federal law requires that an employer obtain your written approval before conducting a credit check. Once it gets your approval, and as long as it provides proper notice, your employer can continue to get your credit report without obtaining another authorization form from you. Deciding whether to authorize an employer to
get your credit report leaves many employees and job applicants in a bind. If you say no, you may look like you’re hiding something and be turned
down for the job. If you say yes, and the employer doesn’t like what it sees, you have the right to see your report and dispute any inaccuracies
before being rejected for the job.

But what if the contents aren’t inaccurate? The best you can do is claim that your problems are behind you and have little or no bearing on job performance. Insurance companies, too, routinely check on applicants before issuing a policy. Most health and life insurers request information on your medical history—mostly about major illnesses—from the Medical Information Bureau (MIB). Other insurers are permitted to check reports, although their use is infrequent and questionable. MIB isn’t the only noncredit bureau that provides information to creditors, employers, landlords or insurance companies. U.D. Registry and other similar companies provide information to landlords about evictions (also called unlawful detainer actions). A few companies provide check account histories (check bouncing, ATM use, debit card payment) to banks reviewing checking account applications. All of these companies are governed by the federal and state laws regulating credit bureaus.

With all of these companies performing credit checks on your personal history, the best way to stay informed is by obtaining a copy of your Free Annual Credit Report so you know exactly what the companies are finding out about yourself.