Can Bad Credit Impact Your Job Search?  What to Know

We all know poor credit can affect our chances of getting approved for mortgages, auto loans, credit cards, and more. But can previous financial hardship affect whether an employer decides to hire you?

The answer is that it depends on where you live, what type of job you’re applying for, the types of negative marks on your credit history, and more.

Can Bad Credit Affect Getting a Job?

Many employers won’t ask to do a credit check. However, poor credit history can affect your job prospects for some jobs. The jobs most interested in your credit history tend to come in the financial sector, but also entities like casinos, law firms, prisons, law enforcement, military, and other government jobs.

Can Employers Check Your Credit?

Yes, a prospective employer can check your credit report. However, they need your written consent first. If you give the employer permission, they can see your credit history but can’t see your exact credit score.

Why Do Employers Check Your Credit?

For instance, a job in a financial field may see your personal finances reflecting how well you would provide financial advice to others. Managerial positions sometimes take your credit history to indicate how you handle company finances. Missed payments might be a sign you’re unorganized.

What do Employers See When They Check Your Credit?

Employers don’t see your entire credit report but rather a modified version. Your credit score remains left off in addition to any information that could violate equal employment regulations.

Do Employer Credit Checks Appear on Your Credit Report or Affect Your Credit Score?

No, an employer credit check will not appear on your credit report or affect your credit score. These credit checks count as soft inquiries, not hard inquiries. Even if several employers check your credit in a short timeframe, this won’t harm your credit score.

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