Why a new employer might check your credit report

Chris Torney / 20 April 2015 ( 01 November 2016 )

Credit reports are not just used by lenders weighing up whether to lend you money. Employers are increasingly using credit reports to vet potential employees. Chris Torney explains why an employer might want to check your credit report and what information they will be able to access.



Banks, building societies and credit-card companies are not the only organisations that can request access to your credit report.

If you’re taking out a mobile-phone contract, your provider will check your report because this is a type of credit agreement. But so too will most potential landlords and, increasingly, new employers as a final part of the recruitment process.

Applying for a new job? Use our no obligation, free trial to get your credit report in order. 

Why does your employer want to check your report?

A potential employer may use your report to ensure:

  • You are who you say you are.
  • You have a record of responsible financial management – especially if this is an important factor in the role you have applied for.
  • You are not under significant financial strain – for example if you have a large amount of debt to pay off – that could affect your performance at work.

What information will the employer be able to see?

An employer will not be able to see the details of your credit agreements, only if there are any serious problems.

The report will show whether you have been declared bankrupt in the previous six years or had any County Court Judgements (CCJs) made against you in that period.

Want to improve your credit report? Find out how.

Is your employer allowed to check your credit report?

An organisation can usually only check your credit report with your permission.

As part of the recruitment process, you may be asked to give your consent to a check being made.

Make sure your report is accurate

Before applying for a new job, it makes sense to ensure your credit report is accurate and up-to-date.

You can check your report with each of the three credit reference agencies Experian, Callcredit and Equifax – where you can request a basic copy of your report for £2.

If your address is out of date, make sure you are registered on the electoral roll at your current address.

If you have paid off a CCJ, it will be recorded as satisfied and you can get it removed from your credit report after six years. If you pay the CCJ off within a month of the judgement being made, it can be removed from your report within four weeks.

You can get unlimited access to your credit report with Experian's free 30-day trial.

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The opinions expressed are those of the author and are not held by Saga unless specifically stated.

The material is for general information only and does not constitute investment, tax, legal, medical or other form of advice. You should not rely on this information to make (or refrain from making) any decisions. Always obtain independent, professional advice for your own particular situation.