What are employment credit checks?

Starting a new job comes with lots of preparation - from researching the company to figuring out your route to the office. 

However, employment credit checks are often overlooked, but they’re a vital part of the hiring process - especially for roles that require a high level of trust and responsibility. 

Read on to learn more about what an employment credit check involves, the type of information that will be seen, and what effect it will have on your credit score. We’ll even tell you how a Boshhh SIM-only contract phone with no credit check can help you out!

Why do employers use credit checks?

When you apply for a job, your future employers will want to evaluate your responsibility, reliability and potential risk factors. 

They use credit reports as a way to develop an insight into your ability to manage responsibilities (including finances and sensitive information), your decision-making skills, and overall integrity. 

Common reasons why an employer will look at credit checks are: 

• To measure trustworthiness and responsibility 

• To reduce the risk of fraud and theft 

• As a legal and regulatory requirement 

• To assess potential financial stress 

• Verification of information 

  
  

Not all employers run these checks - they’re often only completed under specific circumstances or for specific roles in the financial sector. 

Information seen by an employer during a credit check 

During an employment credit check, the following information will be visible: 

• General information about you (including address history)

• Credit accounts 

• Public records

• Debt loans 

• Other financial information 

The effect of an employment credit check on your credit score 

An employment credit check won’t leave a mark on your report unless it’s a hard credit search - which is unlikely. 

Hard credit searches will show up on your report for around six months and are usually completed when applying for credit and loan types like credit cards and mortgages. 

Employers simply want to confirm your identity and get a quick glance at your credit history, so you don’t have to worry about it affecting your credit report. 

If a hard credit search is needed, it will require your permission, so won’t be completed without your consent. 

How to prepare for an employment credit check 

If you’re worried about an employment credit check, there are a few ways you can prepare to ensure it accurately reflects your financial responsibility. 

Review your credit report 

The first step is to take a look at your credit report. 

This gives you an understanding of what your future employer will see when they run their checks. 

Check for errors and report them 

When reviewing your report, check for any errors - including everything from personal information to incorrect payment statuses - and report them as soon as you can. 

Any inaccuracies can damage your report and be flagged by employers. 

Pay off outstanding debt

If possible, pay off any overdue payments to lower your debt. 

This will increase your credit score and show you aren’t solely relying on credit. 

Avoid hard credit checks

Hard credit checks can stay on your report for a while. The more you have, the more damage it will do to your report. 

If you can, avoid applying for credit and loan types during your application period. it will reflect an increased debt load and highlight your struggles with money management. 

Improve your credit score with Boshhh

Applying for a new job but concerned about your credit score?

Boshhh can help. 

Our credit building SIM plans are guaranteed to increase your credit score, display financial responsibility, and give you access to the UK's leading credit building mobile phone network. 

What are you waiting for?

Put yourself first and start building your financial future today.