Credit report Q&A: “Does a credit report show employment history?”
Spoiler alert! If you’re trying to game the system, you might want to think again.
Credit reports contain a ton of information about us, whether we like it or not. And much of it is there to stay, at least for a decade or so, unless we dispute it.
Aside from the standard stuff like active credit tradelines and closed accounts, there’s a section way at the bottom of most credit reports that details past and current employment information.
The saving grace, if you’ve got something to hide, is that the employment section is far from robust.
Typically, it’s a small section with a few random job titles and perhaps several names of former employers.
This gives you plenty of wiggle-room if someone is giving you heat about your former employment details.
Why is it there?
That employment information was provided by you at some point along the way when you applied for a credit card, auto loan, mortgage, etc.
Typically, you need to provide employment information when applying for new credit, so those details could come back to haunt you if you aren’t forthright.
How is it used?
While it may not directly impact whether you get the loan/credit card or not, prospective creditors may review your employment information alongside other credit score information.
So if you tell them you’re the CEO of a Fortune 500 company, but your credit report lists you as a janitor, an explanation may be required.
Does My Job Affect My Credit Score?
Here’s the good news. Employment and job history doesn’t have any effect on your credit scores, at least directly.
Interestingly, you’d think employment would have an effect, given the fact that there is probably a positive correlation between good employees and good credit scores.
But that’s a topic for another day…for now, employment won’t determine your credit score, so don’t fret.
Though as mentioned earlier, a diligent underwriter who digs deep may find that what you put on the application and what showed up on your credit report don’t match.
If this is the case, you may need to provide more documentation to get that mortgage or auto loan approved.
Can you dispute employment information on your credit report?
Yes. Like any other information you feel is being misreported, you can dispute it with the three main credit reporting agencies.
It’ll take a little work and some time for the changes to be reflected, but may be worth it if there’s something you really don’t want showing up.
Just note that doing so won’t change your credit score, for better or worse.