If You Take Out An Auto Title Loan Are You A Good Employee?

Credit scores are a large part of our consumer driven society. Although auto title loan lenders may not consider a person's credit history when granting a loan, most other creditors lend based on what they see as "credit worthiness". This number is called a FICO score.

But did you know that when you apply for a job, potential employers make check your credit history as well? About half of Americans nationwide believe it is illegal for a potential employer to run credit checks on perspective employees; but it's not. Many employers believe a person's credit score can determine how a particular person will be as an employee. Responsibility, accountability and honesty are all character traits that an employer will evaluate with a credit check.

Employers may draw conclusions about a person's ability to be responsible on the job based on how they handle their financial responsibilities. Some see a correlation between how an employee manages their finances and how well that person will be able to handle and manage responsibility on the job.

"Citizenship behavior" and "task performance" are two factors that may be considered when it comes to looking at one's credit score. Also, how agreeable a person is or is not may affect their credit score. Apparently those who are "less conflict avoid-ant are more likely to have a higher credit score; meaning they don't walk away from their financial responsibilities but instead handle them.

Employers in the financial sector, or other areas where money is involved, turn to credit reports to predict if an employee will commit fraud or not. If an employee has access to money and is found to be in debt, the temptation to commit fraud or theft may be greater for that person. There is no evidence, though, that a person's credit score can predict the possibility of theft or counter-productivity at work.

A credit report can also help employers verify employment history and other pertinent personal information about a potential employee, like a person's social security number. Some credit bureaus have a special credit report solely for employers which allows them to see certain things but prohibits access to certain information protected by the Employee Opportunity Act. This includes birth date and account numbers associated with credit cards and bank accounts.

If an employer decides to check a credit report when looking to hire an employee, it must follow the legal rules set out in the federal Fair Credit Reporting Act (FCRA). The FCRA requires employers to:

*obtain consent by the perspective employee before pulling the report *give the potential employee a warning and a copy of the report should the employer plan on rejecting you based on what is in the report *provide you with an official adverse action notice if they choose not to hire you based on the contents of the report.

Being that auto title loan lenders do not require your credit history when you apply for a loan, your payment history with them will not impact your credit score and report. Although it's certainly in your best interest to repay your loan in a responsible manner, should you become late on making your payments, or even default, the auto title loan lender will not report to the credit bureaus. Keep in mind, you can have your car repossessed for not paying back your auto title loan and if the lender turns your account over to a third party collector, they may report it.

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