Why do some employers check your credit score?

“When you hear things like ‘bad credit score can stop you from getting a job’, it’s actually not true. That’s because employers don’t pull your actual credit score like a lender would,” says Griffin. The employer must inform the applicant that the credit check can be used as part of the employment decision.

Likewise, do prospective employers check credit? Yes, Employers Can Pull Your Credit Report most of the time, a potential employer will work with an agency that performs background checks on these job applicants. These background checks usually include checking the applicant’s credit history as well as their criminal records and other public records.

The score is a way to be able to evaluate people’s behavior and thus draw certain conclusions. For example, a person who has 800 points on the score means that he is a good payer and bears all his debts.

Noting that he has a significant score, the chance of the institution lending a high amount will be much greater. Therefore, the use of the score serves both the consumer and the institutions. Institutions use it to assess whether a particular person has a good profile as a consumer and whether it is interesting to take out a loan for him.

So, believe me: High Score Can Help You!

On the other hand, the consumer, evaluating his score, can conclude how his development is going. Thus, it is easier for these people to control their behaviour, and seek to have a much healthier and more pleasant financial life.

“Credit scores don’t normally show up on a background check. Most employment background checks do not look for credit information, but for criminal records. They usually want to know if you are dangerous to employ.“ Some pre-employment exams go deeper and look at credit.

In most states, it is possible for an employer to decline to hire you due to your credit history. It can be the sole reason for the rejection, or a single contributing factor among many.

Several states limit employers’ ability to use credit checks when making hiring decisions. These include California, Colorado, Connecticut, Hawaii, Illinois, Maryland, Nevada, Oregon, Vermont and Washington. Delaware restricts public employers only from incorporating credit checks into employment decisions. Some cities have passed laws too: New York City and Chicago, for instance, prohibit employer credit checks. For more information on your state’s laws, visit the website for its office of labor.

If your employer does check your credit history, it will likely take many other elements of your application under consideration too. It will evaluate factors like the relevance of your previous experience, your educational background and references from within and outside the company.