Lauren Smith, WalletHub Staff Writer
@laurenellesmith
Employer credit checks show your payment history, outstanding balances, credit limits, existing accounts, and credit inquiries. Employers can view modified versions of your credit report, which do not include personal information that could violate equal employee regulations, like your birth year or marital status. Employer credit checks also do not have your credit score listed.
What Does an Employer Credit Check Show?
- Payment History – The record of on-time or late payments for your credit and loan accounts.
- Outstanding Balances – The last balance lenders and creditors reported for each of your accounts.
- Credit Limits – Limits on your credit cards and other lines of credit.
- Credit Inquiries – Applications for credit.
Companies use credit checks to evaluate potential employees’ financial stability and trustworthiness. If you have a number of late payments, derogatory marks, or excessive debt, this could indicate that you may commit fraud or theft to mitigate your financial distress. An employer usually checks a prospective employee’s credit if the position requires a security clearance, handling money or access to confidential data.
If an employer plans to check your credit and could reject you because of the results, the company must give you a copy of the report and wait a reasonable period, usually five business days, to take any adverse action. This grace period allows you to explain issues on your report ahead of time.
You can check your credit report for free here at WalletHub.
People also ask
Can you be denied a job because of bad credit?
Yes, you can be denied a job because of bad credit in 39 states and the District of Columbia, while 11 states ban the practice in most cases. But all 11 states have exceptions, most of which concern being hired to jobs that involve finance or looking at credit late in the hiring process (such as after an interview). Another 17 states have introduced similar legislation that has yet to pass. If you live somewhere that...
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