According to a study by Society for Human Resource Management, it is becoming a common practice for employers to look up candidates' credit reports before hiring them. The practice is catching on especially within the financial services sector and the information technology sector. Employers are doing so because they believe that a poor credit report reflects a lack of discipline and inability to manage his personal affairs properly. They also fear that a person who is constantly worried about his debt situation is unlikely to focus 100 per cent on his job.
What should you do?
If you are applying for a job, then it would be a good idea to pull out your credit report and see how you fare. If your credit score is poor, begin work on repairing it. There could also be mistakes in your credit report. You may have paid off a loan, but this may not be reflected in the bank's books. Get in touch with the bank and ask it to correct its record book.