Are credit checks for employment legal?

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140

Answer 1 · 2015-12-06 19:05:19

Kathryn B. Hauer, CERTIFIED FINANCIAL PLANNER (TM)

@KathrynHauer 12/06/15 This answer was first published on 12/06/15. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

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Hi! Yes it is legal in many states, and it is becoming more customary. Certain jobs in financial, IT, and government fields often also require you to give you social security number and the agreement for a full background check with your initial application. If your credit score is not as good as you would like to be, you can work on raising it using tips from this WalletHub article.

I agree with David that it is somewhat unfair because if you are out of a job you are likely to have money troubles that may result in a lowered FICO credit score. Best wishes to you and thanks for writing.

Answer 2 · 2015-10-19 13:13:23

Clearpoint Credit Counseling Solutions, Financial Company

@ClearPointCCS 10/19/15 This answer was first published on 10/19/15. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

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It is legal as long as you are made aware. You typically have to sign a release. The company is interested in the report, not the score. They likely want to check for judgments, bankruptcies or severe deliquencies, especially in positions where you would be handling money or required to have a security clearance.

Answer 3 · 2015-10-15 09:44:45

David Cretcher, Registered Investment Advisor (RIA)

@DavidCretcher 10/15/15 This answer was first published on 10/15/15. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

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It depends on the state. I'm not a lawyer, but as I understand it in most states they can as long as they follow the Fair Credit Reporting Act. So if you need a job because you can't pay your bills, you're probably at a disadvantage.

Answer 4 · 2018-02-27 17:22:40

Barry Adams, Member

@barry_adams_1 02/27/18 This answer was first published on 02/27/18. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

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Most modern companies will want to do a full background check on you, which includes a credit check. It's not something to be afraid of, but you do have to give consent.

Are credit checks for employment legal?

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