Understanding Bad Credit and Employment

Most people know that a bad credit card history can affect a consumer's ability to get credit in the future. A negative item on a credit report or credit rating can impact one's chance of getting a car or home loan, credit cards, checking or savings accounts, or even renting an apartment. But many do not realize that bad credit and employment can go hand in hand; a bad credit card history can affect your ability to get or keep a job. Employers often use a credit report when they hire and evaluate employees for promotion, reassignment or retention.

Learn More About Fair Credit Reporting Act Regulation

According to the Fair Credit Reporting Act regulation, an employer must get your permission to look at your credit report. If you are denied a job because of a negative item on a credit report, the employer must give you the name and contact information for the agency that supplied them with the credit report. They must also give you written instructions on how to challenge the accuracy of the information in your report. Accurate negative information can stay on your report for seven years; bankruptcy may be reported for 10 years. However, if there are mistakes on your credit report you can dispute the inaccurate items. Contact the Credit Reporting Agency directly if you want to dispute items on your credit report.

All consumers should check their credit reports o­nce a year to make sure they are accurate and complete. Contact these three major credit reporting agencies for a copy of your own credit report:

Equifax - 800-685-1111 ( www.equifax.com )

Experian - 888-EXPERIAN (397-3742) ( www.experian.com )

Trans Union - 800-916-8800 ( www.transunion.com ).

Your report may cost up to $9; in some states, they are free.