Don’t let your credit score hinder your hiring

While filling out a job application, you may notice that your prospective employer would like your permission to view your credit report as part of their hiring process.

But is this acceptable, or is it an invasion of your privacy? We have a look at what the regulations say, as well as the best course of action you can take.  

Tip: Join JustMoney and find out what your prospective employer might see on your credit report.

What do the regulations say?

Shaun Viljoen, senior business analyst at SearchWorks, South Africa’s largest innovative data aggregation platform, says that employers can only request your credit report in certain circumstances.

“Requesting an employee’s credit score can only be done when the job description of the position relates to the handling of cash or finances,” says Viljoen.

He points out that the National Credit Regulator’s (NCR) Circular 04 of 2019 provides clarity on the access of consumers’ credit information as follows:

• A consumer’s credit record may not be accessed by an employment agency, recruitment consultant, staffing company, or employer, unless they certify that the request relates to positions requiring honesty in dealing with cash or finances, and the job description of such positions are clearly outlined.
• In order to comply with these regulations, the credit bureau must request the following documents:

1. Written consent from the prospective employee; and
2. A job description, clearly outlining how it deals with cash or finances

The NCA will, on occasion, audit the credit bureaus to make sure that they follow the correct processes when giving employers access to potential employees’ credit reports.

Your permission, and best course of action

Viljoen says that you may decline a prospective employer’s request to view your credit report. He explains that employers should always get your consent prior to conducting a credit check.

“Refrain from unnecessary credit profile checks, as this does impact your credit score, and ensure that your rehabilitation or repayments on your active accounts are always on track based on the institution’s requirements or regulations,” says Viljoen.

The best way to handle this kind of credit check is to be aware of your credit score, and to ensure that it reflects reliable and responsible financial behaviour.

You may unexpectantly find a job in the finance industry and, if you have a good credit score, you will be able to put your employer at ease by being willing to share your credit profile with them.

Know your credit score, and then start improving it. Join JustMoney for free today.