Can you be turned down for a job because of bad credit?

Yes, you can be denied a job because of bad credit in 39 states and the District of Columbia, while 11 states ban the practice in most cases. In fact, your credit report won’t even necessarily be pulled during the application process. And if it is, the employer is required by law to get your written permission.

Why does my credit score matter for a job?

Employers use credit checks to gauge your trustworthiness and aptitude at managing money. A hiring committee may think employees who can skillfully oversee their own finances would do the same for high-stakes projects at work. Companies that run credit checks see a limited version of your credit report.

Do employers look at credit scores?

While potential employers don’t have access to your credit score, they might request a modified credit report for insight into your credit history. While your next employer may take a look at your credit history, unlike lenders, they cannot see your credit score (or your credit account numbers).

How do you explain debt to an employer?

Provide your potential employer with valid reasons for your poor credit reports, such as identity theft or financial circumstances beyond your control. Write a formal letter of explanation outlining the reasons that you previously provided for your poor credit rating and send it to your employer.

Why do employers want to look at your credit report?

In most cases, the answer to why employers want to access your credit report at all is quite simple: they are looking to reduce their risk. Many employers only look at credit reports to protect themselves against actions that violate ethical standards or criminal behavior.

Why is my credit score so bad when I search for jobs?

On top of it all, you’ve had some missed payments and negative marks on your credit report as of late because finances have been tight while you search for a new job. Job-hunting is stressful enough without having to worry that your less-than-perfect credit score will make you seem like a less competitive candidate.

Should you have a credit check when applying for a job?

While having a credit check as part of your job application may feel like a tension-filled cherry on top of your stress-soaked sundae, it’s not all doom and gloom. Besides growing regulation that limits this practice, credit checks also seem to be declining in popularity amongst employers themselves.

Do credit bureaus share your credit score with employers?

The short answer is no, credit bureaus do not share your credit score with employers. Subject to restrictions in state law, employers may, however, ask to see your credit report.