Thanks to the Fair Credit Reporting Act (FCRA), employers can’t go checking your credit history behind your back. They must have written consent before pulling an applicant’s credit history. In some states, there are specific restrictions when it comes to employers using credit information for employment decisions.
What States Can employers check credit?
Eleven states have passed laws limiting the use of employment credit checks. State laws to limit employer credit checks were enacted in California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maryland, Nevada, Oregon, Vermont, and Washington.
Do employers care about your credit?
Employers Check Credit History, Not Credit Score Before diving into all the reasons why employers might check your credit, though, it’s important to understand what they’re really checking. Employers look at job candidates’ credit reports — not their credit scores.
Can you get fired for having bad credit?
Most people know that employers can check your credit score while hiring you, but they can also do it while you work there—and let you go if the results are bad.
Can a employer look at your credit report?
While employers may want to check your credit, that doesn’t always mean they’ll be able to do so. There are 10 states — plus Washington, D.C. — that either prevent employers from looking at your credit report altogether or that restrict the circumstances under which employers can use information from reports to make job-related decisions.
How often do employers check your credit score?
If you’ve been under contention for a job, chances are good an employer has asked you to submit to a credit check. As many as 72% of employers conduct background checks on all new hires, and close to 3 in 10 employers check candidates’ credit, according to a recent Career Builder survey.
Do you have to do credit check when applying for job?
In addition to employment history and criminal background checks, some employers also run credit checks on applicants and use that information to make hiring decisions.
Can a employer use a credit check to discriminate?
The Equal Employment Opportunity Commission (EEOC) oversees how employers can use information from credit checks. Employers are prohibited from illegally discriminating when using financial information to make employment decisions. For example, an employer can’t use one standard for female candidates and a different standard for male candidates.
