Can a Company Ask for Your Credit Score When Hiring You?

Many employers routinely request credit checks as part of their hiring process. Some use the information in credit reports to verify an employee's identity and work history, while others consider an applicant's financial history when making employment decisions. You don't have to consent to a credit check, but some employers won't consider your application unless you do so.

Credit Reports and Scores

A credit report is a history of how you manage debt and credit. Creditors can place accurate information about their dealings with you, including the amount of credit you have available, your payment history and when you opened your credit accounts. Your credit reports also contain information about where you used to live and work, as well as public records, such as liens, lawsuits, bankruptcies and judgments. Your credit score is a number that represents your creditworthiness based on the information in your credit report. A higher number means better credit.

Employer Background Checks

Each employer has its own criteria for employment and uses background check information, including credit histories and scores, differently. Some employers may set a minimum credit score as a qualification for employment; others may review the entire report with an eye toward weeding out applicants with severe delinquencies or judgments. Some employers only run credit checks on employees who deal with money or highly sensitive material on a regular basis.

Credit Discrimination Laws

As of 2011 a few states, including Washington, Hawaii, Illinois and Oregon, have laws restricting how an employer can use credit information in hiring decisions. While these laws sometimes exempt certain employers or positions, they otherwise prohibit employers from refusing to hire someone just because of their credit history. Federal law also prohibits employment discrimination based on a previous bankruptcy, though it does not address other forms of credit history discrimination.

Consumer Rights

Employers need to get your permission before running a credit check on you. If they decide to not hire you because of something in your history, they have to disclose this. They also have to tell you the name and address of the bureau or screening company that generated your report and you can request a copy of the report free of charge.

Avoiding Problems

If you are concerned that you might have credit problems, get copies of your credit reports to see what they contain. You can get a free report from the bureaus once every twelve months by visiting annualcreditreport.com. If you are currently unemployed, but looking for a job, you can request additional free reports directly from individual credit bureaus. If you find inaccuracies, you can contact the credit bureaus directly to request the deletion of incorrect information.