Can I Be Denied a Job Because of My Credit Report?

When you are in the market for a job, you may be surprised to learn that your potential employer wants to pull your credit history. If you have been without work for a while, you may be nervous because of the problems you know are on the report. Before you begin job hunting, consider how your credit score could affect your ability to find employment.

The Reasoning

Employers may make an employment decision based on credit because they believe individuals who have credit problems or a large amount of debt may be more likely to commit fraud or steal from the company in order to repay debt. Others believe people who can handle their personal finances well are better, more responsible workers than those who cannot.

Types of Jobs at Higher Risk

Any employer can use a job applicant's credit history when making a decision, but some are more likely to do so than others. Those who are hiring people to work with money, like cashiers or bank tellers, as well as those who work in high-end retail positions, like jewelry stores, are more leery of employees with a history of credit problems because of the ease of stealing in these situations. Those hiring individuals to work with other people's money, like accounting or investment firms, want to see that employees can manage their own money well.

Applicant's Rights

An employer has the right to check your credit score but not without your permission. Under The Fair Credit Reporting Act, they must have written permission to order your credit report. Bankruptcy cannot be used against you in the decision, but other negative factors on your report can. If the employer chooses not to hire or promote you because of your credit information, they must tell you so and provide a copy of your report, information about your rights and contact information for the company issuing the report.

What to Do

If you have a poor credit history, consider purchasing a copy of your credit report before you begin job hunting. If the employer asks you to sign a waiver giving permission to pull your credit history, take the time to explain the situation surrounding the negative item. If the employer's main goal is to weed out irresponsible applicants, you will show your foresight and ability to act responsibly in spite of difficult circumstances, which could help your case.