There is no minimum credit score for a job. Employers do not even have access to your score but some may check your credit history as part of the hiring process, especially if the job involves financial responsibilities or access to sensitive information.
Employers are most likely to check your credit when you apply for positions in banking, finance, or government. Late payments or high credit card balances could be an indicator of financial duress and may signal to an employer that you’re more likely to commit fraud or theft. However, there are certain regulations employers must follow if they check your credit.
You Have Rights When an Employer Checks Your Credit
If an employer requests to check your credit history, they must follow the rules outlined in the Fair Credit Reporting Act (FCRA). Under the FCRA, employers have to obtain your written consent before checking your credit and inform you if they take adverse action based on your credit history, such as not hiring you. They also need to provide you with a copy of the credit report they used.
Some States Limit Employer Credit Checks
You can be denied a job because of your credit in 39 states. On the other hand, the following 11 states generally outlaw the practice:
- California
- Colorado
- Connecticut
- Delaware
- Hawaii
- Illinois
- Maryland
- Nevada
- Oregon
- Vermont
- Washington
Even those 11 states have exceptions, though. A common exception is checking your credit for jobs at financial institutions or that involve handling money. Employers in these states can also check credit late in the hiring process, such as after an interview.
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.
You can check your credit report and get personalized-credit improvement tips for free here at WalletHub.
This answer was first published on 06/16/23. 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.
FAQs
Employers don't get a credit score during this process, and thus there is no minimum credit score for employment.
What is the minimum credit score for a job? ›
There is no minimum credit score for a job. Employers do not even have access to your score but some may check your credit history as part of the hiring process, especially if the job involves financial responsibilities or access to sensitive information.
What is the minimum acceptable credit score? ›
Lenders generally view those with credit scores of 670 and up as acceptable or lower-risk borrowers.
Can I be denied a job because of my credit? ›
If you are seeking employment, your credit history may be checked and you can be denied employment because of bad credit. Prior to applying for a position, it's a good idea to speak to the prospective employer. You have a right to know if your credit will be checked.
Can I get a job with a 560 credit score? ›
And even though your credit score won't affect your job prospects, it could determine whether you qualify for a mortgage or pay high interest on a new credit card. You're entitled to a free copy of your credit report from each of the credit bureaus once a week through AnnualCreditReport.com.
Do jobs run credit checks? ›
Keep in mind that while employers can legally pull your credit report, it's one of many factors that go into getting hired for a new job. But there is a simple way to appear just as good on your credit report as you do in your job interview: Make sure you always pay your bills on time.
Do jobs ever check credit score? ›
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.
Do employers care if you have debt? ›
Even though your finances are very personal, your debt and credit could be important to your employer and it's accessible to them via background checks. Having a lot of debt might be viewed as a risk to them when they consider hiring you.
How to pass a credit check with bad credit? ›
Here are some things you can do:
- Offer Advanced Payments. Landlords are usually only concerned by bad credit scores, which could result in late payments. ...
- Get a Co-signer. ...
- Provide Strong Proof of Income. ...
- Offer a Good Explanation. ...
- Live With a Roommate. ...
- Get References From Past Landlords. ...
- Rent an Apartment Month-to-Month.
Although ranges vary depending on the credit scoring model, generally credit scores from 580 to 669 are considered fair; 670 to 739 are considered good; 740 to 799 are considered very good; and 800 and up are considered excellent.
Federal Jobs
The federal government isn't generally permitted to deny employment based on the results of a credit check under federal law. That said, if the job you're applying for requires a security clearance, you may not be eligible for that position if your credit history prevents you from securing it.
What is a credit check for a job? ›
An employment credit check is a report of your borrowing history potential employers can use to help make hiring decisions. In most cases, companies who perform credit checks on potential employees do so just before making a job offer or after making a conditional job offer.
What's a good credit score for a job? ›
For a score with a range between 300 and 850, a credit score of 700 or above is generally considered good. A score of 800 or above on the same range is considered to be excellent. Most consumers have credit scores that fall between 600 and 750. In 2023, the average FICO® Score☉ in the U.S. reached 715.
Is 650 a good credit score for a job? ›
There isn't a definitive answer to whether a 650 credit score is a good credit score. But both FICO® and VantageScore® say 650 is considered a fair score.
Is a 500 credit score fair? ›
A 500 credit score is in the bad credit score range. Your credit score determines whether you qualify for financial products, like credit cards and car loans, and what interest rate you might pay. In April 2023, about 3% of Americans had a score lower than 500, according to credit scoring company FICO.
What states prohibit credit checks for employment? ›
Ten states have laws restricting the use of credit reports for employment decisions, including the following:
- California – Cal. Labor Code § 1024.5 et seq.
- Oregon – Ore. Rev. ...
- Washington – Wash. Rev. ...
- Nevada – NRS § 613.570.
- Colorado – § 8-2-126, C.R.S.
- Illinois – 820 Ill. ...
- Vermont – Vermont Act No. ...
- Connecticut – Conn.
