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Does A Background Check Reveal Your Credit Score?

Does A Background Check Reveal Your Credit Score?
Does A Background Check Reveal Your Credit Score?
A background check refers to an investigation to know about your employment history, criminal records and financial information. Anyone especially an employer and a property owner conduct it after receiving your consent. It can pull all sort of information including those you have kept under your hat. When it comes to a background check, the first question pops up in your mind is “Will it affect your credit score?”

If you have already taken out a bad credit loan online with instant decision, you will never want your credit score to show up on a background check. Otherwise, it may discourage you from landing your dream job or renting out a house. Being worried is obvious after all 98% of employers run a background check before hiring employees. However, not all vacancies require it. Companies are keen to know about your financial history only when the job position is financially sensitive.

It is important for any employer to know whether you are likely to attempt fraud or embezzlement. An employer conducts a background check only when you are applying for a position that involves responsibility of taking care of money. Likewise, a property owner will run a background check to confirm that you have no connection with a criminal activity and your financial condition is good enough that you will not default on your rent payment.

Employment Background Checks

As long as your job does not involve a role of dealing with money, the employer’s ultimate goal behind running a background check is to know about your criminal background. This assures that you are not a dangerous person to hire. It has nothing to do with knowing your credit score. It will not show up on a background check and it does not affect your score too.

However, some employers run a deeper background check when the job requires you to handle money and assets. In this case, it becomes crucial to know you are not a person who has judgements, bankruptcy or a large amount of outstanding debt. Employers do not want to know your credit score but outstanding dues that may put their funds on stakes after hiring you.

Investigators report that they do not provide credit scores. Before producing a credit report with information like closed accounts, current accounts, payment history and dues, they would like to have a consent letter signed by you. The report does not disclose your credit score, no matter which kind of job you apply for.

Tenant Background Checks

Landlords run a background check to ensure that you will responsibly be paying out rent. A credit check helps them know about your repayment history. If it reveals CCJs, bankruptcy or outstanding amounts, the property owner may change their mind to let out. However, once you have occupied the house and due to any reason you struggle to pay it off, your landlord will have to give an eviction note in writing.

Like an employer, a property owner will have to seek permission in writing before running a credit check. However, a credit check does not mean that they will get to know your credit scores. Your landlord can know about your reliability and financial commitment by knowing your payment history and previous defaults. They do not need to know your credit score. The information they receive will not be as comprehensive as that is available to lenders. Your credit report only will disclose information related to electoral roll, insolvency, county court judgments, orders and fines.

You are not legally required to give your consent to a credit check, but your landlord may not feel confident about renting out. In addition to a credit check, the background check may also include asking for references from previous landlords and employers, identification proof, and a proof of employment.

The Bottom Line

There is nothing to worry about background checks whether you are applying for a job or looking for renting a property. The credit check will not turn up your credit score, nor will it pull it down. However, it does not mean that you are not likely to get in trouble. Employers and property owners will not get to know about your credit score but about credit history.

Even if your credit report does not reveal a credit rating, payment history is more likely to disclose about your financial commitment. If it shows delinquencies, you are likely to end up with rejection. You cannot escape a background check because otherwise you will get neither a job nor a house. Therefore, the best approach is to work on your finances. Make sure that you do not make defaults on your loans, utility bills and credit card balances. Having a good payment history means you are more likely to get a job or flat without any hurdle.

Description: A background check whether it is for a job or renting out a flat does not reveal your credit score, neither does it pull your credit rating.

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