Becoming Enlightened

So, you landed a new job? Amazing! The last step is just to pass a background check, and drug test—no problem.

You don’t use drugs, so no worries there.

But, what’s on that background check?

There are several things to think about when you change jobs, apply for a new place to live, apply for insurance, or do anything else that requires a background check.

Here are a few things to consider so that you can become more aware about what could possibly be on a “background check,” and how it could affect your financial future.

1. Renters Profile

You may have a profile that isn’t explicitly visible on your credit report. A renters profile AKA a rental resume can determine if you get your next place or not. It’s important to try to track this down to see if you have one, if all of your payments are on time, and if there are any negative remarks.

Evictions will also show up on a renter’s profile and public record. If you have a foreclosure or eviction on your public record, you can work with your city or county to see if you have the right to get it expunged.

Evictions may not show on a normal credit report, so do your homework! Be honest with yourself, “If I saw this on a person's profile, would I want to lease my space to them?" If you would say no to yourself, it’s time to clean that thang up!

Zillow.com, trulia.com, cozy.com, and rentprofile.co are all good sites to start exploring!

2. Banking profile

There is a group called chexsystems.com that almost all banks and credit unions report to. It’s kind of like a credit report for your banking history. A bank report card.

Every time you have an overdraft, NSF check, or an account that has been negative for more than 30 days, it can hit your Chex Systems report.

The more negative remarks, the less likely that you'll be able to open a new account, take out a bank loan, or deposit checks without an extra hold-time.

Chexsystem.com, or even your current bank may be able to help you see what's on that report!

3. Motor Vehicle Report

Every time you get a speeding ticket, parking ticket, get a DUI, or have issues with car insurance or car tabs, it can pop up on your motor vehicle report.

If you've ever been pulled over, you know that the officer asks for your license and registration or insurance. They want to make sure you're licensed, and have insurance coverage, and proper ownership of the vehicle.

They also want to see if you have other things on your MVR. If you have five speeding tickets and a DUI in the last year, chances are you're gonna get some extra attention. If it's your first time getting pulled over, you may get off with a warning.

What does this have to do with finances?

• A) Moving Violations and Parking Offenses are against the law. So it could impact employment! AKA, how you make $$$.
• B) Negatives on your MVR could significantly raise your auto insurance rates. SIGNIFICANTLY. If you let your auto insurance lapse, and get in an accident or get a DUI, it may be hard to even get auto insurance in the future.
• C) Criminal Offenses could raise your life or disability insurance rates. Someone with a few DUIs in the same year could even get declined for life insurance.

4. Other background checks

Other things to be aware of that may not show up explicitly on your credit report, but in more of a public record are tax liens, evictions, and bankruptcies.

Different than your renter's profile, a county public record could show if you've had a bankruptcy or eviction. If you're running for a public position this could be embarrassing to have out in public.

Some states and counties will allow you to expunge records if the knowledge doesn't benefit the public. Basically, if someone made a mistake and filed an eviction notice, but you paid that day. Or if the tax lien was paid off, but not reported.

Think ahead, and do your homework! The important thing to consider with all of these different types of background checks and reports is that your actions may be reported and tracked somewhere.

If you've already made a few goofs, be aware that these things exist. Be prudent to clean up the reports, or remedy them as soon as possible!