Is Your Credit Score on a Background Check? | LendingTree (2024)

FAQs

Is Your Credit Score on a Background Check? | LendingTree? ›

editorial guidelines here . Wondering if your credit score shows up on the background check run by your potential landlord or employer? The short answer is no, your credit score doesn't usually show up on a standard background check — though sometimes landlords may submit a request for a credit check separately.

A credit check may show a candidate's credit and payment history; bankruptcy notifications; record other credit inquiries made on the candidate; list of accounts in collections; and the name and addresses of both current and past employers. The results may also depend on federal, state, and local laws.

The extent to which employers can use a credit report in hiring decisions also varies from state to state. The following states prohibit companies from making hiring decisions based solely on credit: California.

Many companies will conduct employment credit checks as part of their hiring processes. Although employers don't have access to your three-digit credit score, the other information in your credit report could be the difference between getting your dream job and getting passed up.

You can pass a credit check for a job by disputing credit report errors, catching up on past-due bills, and proactively giving the employer context to help explain problem areas from your credit history.

“Credit scores typically do not show up on a background check. Most background checks for employment do not seek credit information, but rather, criminal history. They are typically looking for whether you are dangerous to employ. "Some pre-employment screenings do go deeper and look at credit.

So failure and rejection have been mitigated.” Consumer rights attorney Larry P. Smith explained that even if a potential employer isn't looking at your credit history specifically, they may still pull your credit report: “A credit score can affect your job chances by getting you denied employment.

Employers don't get a credit score during this process, and thus there is no minimum credit score for employment.

A poor credit score falls between 500 and 600, while a very poor score falls between 300 and 499. “In general, people with higher scores can get more credit at better rates,” VantageScore says. So you could have trouble getting approved for higher-limit, low-interest cards with a credit score of 600 or below.

Let's take a look at how having a lot of debt can impact your job search. Employers may find out about your debt during the background check. When you're applying for a job, your potential employer might ask to run a background check and learn more about your debt levels.

How to explain bad credit to an employer? ›

Companies want to get a clear picture of your ability to manage your finances because this could reflect how well you can handle large amounts of financial responsibility within the company. Many companies also believe that a credit history provides insight into an applicant's integrity consider.

Know Your Rights

Before diving into employment and credit laws, let's dispel a myth that's been perpetuated online. When you hear things like “a bad credit score can prevent you from getting a job,” it's actually not true. That's because employers don't pull your actual credit scores like a lender might, says Griffin.

Employers Consider Factors Other Than Your Credit

Your credit is not the only consideration for an employer making a hiring decision, and a poor credit history does not necessarily disqualify you from getting a job. However, having a good credit history can demonstrate that you are responsible and financially stable.

More than ninety-six percent of employers conduct background checks on their prospective employees. And, more than fifty-one percent of employers check a prospective employee's credit.

Warning signs on a background check include multiple periods of unexplained unemployment, inconsistent information, short periods of employment, minimal relevant job experience, no required education or training, professional license issues, dangerous criminal convictions, job-related criminal convictions, bad ...

Using a professional background check provider can help streamline the process, with standard reports typically returned in 2-5 business days. Checkr offers candidate's the option to sign in to their payroll provider directly through our quick verification option, with these reports typically completing in 1-3 minutes.

A credit reporting company generally can report most negative information for seven years. Information about a lawsuit or a judgment against you can be reported for seven years or until the statute of limitations runs out, whichever is longer.

A background check can confirm details about a person's previous jobs, such as the titles they held, the dates they worked there, and the reasons they may have left.