Do Credit Scores Show Up on Background Checks?

It can be hard to understand how background checks work, or even why a credit background check might be needed. Bear in mind that when a candidate undergoes a background check, this is usually for a new job or position, and the employer is conducting the check because they need to know the necessary information about their prospective hire. For example, newly qualified teachers will likely need a background check to ensure they are safe working with children. But why does credit come into this?

It really depends on the job they’re applying for. While credit background checks aren’t standard for many jobs, a job-seeker likely needs a background check if their role requires them to work with the company’s finances or if they’re working in the security sector. It’s also well within the candidate’s rights to ask the employer why this is necessary.

Remember that a candidate doesn’t need to agree to a credit background check, but it may harm their chances of being hired for the role, should it require one. It’s best that employers provide clarity during this process, so nobody is left feeling targeted or in the dark.

While a company can request to conduct a background check, it’s important to remember that a candidate’s credit score will not be shared with the employer. A background check also won’t affect their credit score, either, which can provide peace of mind for prospective hires. Other confidential information that won’t be disclosed includes account numbers, income, medical bills, or any other information that could cause discriminatory action, such as race, age, marital status, or ethnicity. 

However, while this information remains undisclosed, a background check can reveal a candidate’s payment history, bankruptcies, credit accounts, and available credit, as well as information like their full name and address. Information like credit freezes won’t affect their background check. 

It can be confusing to understand why an employment credit check is shared with an employer, but credit history can really alter how a candidate is perceived. Remember that a credit score won’t be shared; however, an employer can still discover how reliable or organized new hires are based on what they see in the applicant’s credit history. 

Imagine a job-seeker is applying for a job in a financial service where they’ll handle company funds, or perhaps they need a security clearance. Employers can look at credit history, see potential late payments or debts, and view those as a weakness in hirability for this specific role. Additionally, whether rightly or wrongly, a company could view debts as a financial stressor, which could impact job performance.

While it’s debatable how “fair” this practice is, the company cannot legally conduct the check without consent.