Yes, employers really do check your credit report

Posted by Caitlin on June 22nd, 2009

Credit report monitoring is crucial for a number of reasons. It is important to be aware of your credit in order to ensure that you receive the best possible interest rates on loans, to remove negative or incorrect information as soon as possible, and to monitor for new account fraud.

It is often said that prospective employers are known to check credit reports, but many people may not believe that bad credit really can cost them a job. In a recent MSN Money article, Liz Pulliam Weston makes it clear that many employers, including the federal government, routinely scour credit reports on current and prospective employees to help decide who's hired or fired. According to Weston, "Employers who care about credit histories typically look for serious negative marks, such as collection actions, repossessions, foreclosures and evictions. Some are wary of people carrying enormous debts or otherwise indicating they're living well beyond their means."

To learn more about credit report monitoring, see our reviews and comparison chart.