Myths and misinformation abound in the world of credit scoring. Here are some of the most common credit scoring myths, and the truth of the matter.
1: Credit scoring used for pre-employment screening
Truth: Credit scores are not and have never been used by employers for employment screening purposes. Employers don’t even have access credit scores.
Credit reports, which are different than credit scores, can be used for employment screening purposes, but only if you provide your overt permission for the report to be accessed.
The idea that credit scores are used by employers stems from the fact that the terms credit report and credit score are often used interchangeably. However, the terms are not interchangeable whatsoever since credit scores and credit reports represent two entirely different products.
Equifax, Trans Union, Experian, and even the credit bureau’s trade association have gone on the record over and over again stating that credit scores are never provided to employers.
There is no doubt that credit scores do wield a lot of power. They can affect your insurance premiums, determine your eligibility for loans, and impact your interest rates on loans. However, credit scores cannot influence an employer’s decision to offer you a job.