Now Showing Background

What does a background check show?

This question is about Credit Scores

WalletHub , Financial Company

@WalletHub • 08/12/20 This answer was first published on 08/12/20. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

A background check shows identifying information, credit report contents, employment history, university degrees, driving history, public records, and/or criminal records, depending on the situation. If you authorize a potential employer or other party to run a background check on you, you can ask what area(s) the background check will focus on.

One of the best ways to make sure a background check goes smoothly is by checking your credit report regularly. Since many items that show up in a background check can be traced back to your credit report, correcting any mistakes there can go a long way. You can check your TransUnion credit report for free through your WalletHub account.

Things that can show up on a background check include:

Identifying information. When someone runs a background check on you, they can see identifying information, such as your Social Security number, date of birth, and physical address. This information is used to verify that you are who you say you are.

Credit history. When a potential employer runs a pre-employment search on your credit, the contents of your credit report (including tradelines, credit inquiries and identifying information) will be revealed. Employers may want to see how you manage credit if it's relevant to the position, and too many credit inquiries or significant account balances can signal recklessness.

Employment history. When you apply for a job, employment history verification may be used by your potential employer to match your employment history to what you reported on your job application. This verification will also confirm details such as dates of employment, salary, job function, and termination rationale (if applicable).

University degrees. Similar to employment history verification, an education background check can confirm any degrees you list on your resume.

Public record. Any items included on your public record, such as bankruptcy, will also show up through a background check.

Criminal record. A background check can show criminal offenses at both the state and federal level. Convictions (felony and misdemeanor), pending charges, and any jail time will all show up in a criminal history check. Depending on your state's laws, previous arrests can also show up, but juvenile records do not.

widget avatar

Paul Wannemacher , Resident Financial Planner

@PaulWannemacher • 02/21/16 This answer was first published on 02/21/16. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

In general an employer can access public records without your authorization to find out information like bankruptcy filings or legal actions. Permission to pull your credit report is almost always something you must grant (though many states are now restricting credit checks) as well as the permission to have a private agency run a background check on you. Once you approve the check they can look for arrests ore criminal actions on your record. Many application processes include these authorizations in the application packet, and not Ok'ing them can give a potential employer a reason to screen you out. The more sensitive the job is regarding access to secure information or proving your qualifications and jobworthiness, the more likely you'll be subject to these investigatatory measures.

Answer Question

People also ask

Are credit checks for employment legal?

Hi! Yes it is legal in many states, and it is becoming more customary. Certain jobs in financial, IT, and government fields often also require you to give you social security number and the agreement for a full background check with your initial application. If your credit score is not as good as you would like to be, you can work on raising it using tips from this … read full answerWalletHub article .

I agree with David that it is somewhat unfair because if you are out of a job you are likely to have money troubles that may result in a lowered FICO credit score. Best wishes to you and thanks for writing.

show less

Can you be denied 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. But all 11 states have exceptions, most of which concern being hired to jobs that involve finance or looking at credit late in the hiring process (such as after an interview). Another 17 states have introduced similar legislation that has yet to pass. If you live somewhere that lets employers discriminate, it can be a vicious cycle, as unemployment can lead to more debt and worse credit. If your credit is bad and you're looking for a job, your best bet is one of the states that have passed restrictions. … read full answer

The good news is that companies consider a lot of things in the hiring process, and credit is only one of them. 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. So if you never heard from them about credit during the application process, they didn't look at it. And just so you know, employers are only allowed to look at your credit report, not your credit score .

Here's when and where you can be denied a job because of bad credit:

39 states and the District of Columbia have no restrictions on denying job applicants based on credit.

California, Connecticut, Hawaii, Illinois, Maryland, Oregon, Vermont, Delaware, Nevada, Colorado and Washington ban employers from discriminating based on credit in most cases.

All 11 states with bans have exceptions. A common one is for jobs at financial institutions or that require handling money. Some of the states also allow credit checks in the late stages of the application process.

Around 60% of employers check some job applicants' credit, but only 13% do so for all applicants, according to the Society for Human Resource Management.

An employer must get your written permission to check your credit report, and they must tell you before doing so.

You have the right to refuse a credit pull by an employer, but you probably won't be hired if you do.

Credit checks are only part of the application process. If an employer likes everything else about you, bad credit won't necessarily rule you out. Just because they can deny you doesn't mean they will.

You can still get a job with bad credit. But better credit obviously makes things easier. To start rebuilding your credit , we recommend getting a secured card and then consistently paying your monthly bills on time. To track your progress, you can join WalletHub for free to get daily credit reports and scores, along with a personalized credit analysis that will tell you how to improve and how long it will take.

show less

WalletHub Answers is a free service that helps consumers access financial information. Information on WalletHub Answers is provided "as is" and should not be considered financial, legal or investment advice. WalletHub is not a financial advisor, law firm, "lawyer referral service," or a substitute for a financial advisor, attorney, or law firm. You may want to hire a professional before making any decision. WalletHub does not endorse any particular contributors and cannot guarantee the quality or reliability of any information posted. The helpfulness of a financial advisor's answer is not indicative of future advisor performance.

WalletHub members have a wealth of knowledge to share, and we encourage everyone to do so while respecting our content guidelines. This question was posted by a WalletHub user. Please keep in mind that editorial and user-generated content on this page is not reviewed or otherwise endorsed by any financial institution. In addition, it is not a financial institution's responsibility to ensure all posts and questions are answered.

Ad Disclosure: Certain offers that appear on this site originate from paying advertisers, and this will be noted on an offer's details page using the designation "Sponsored", where applicable. Advertising may impact how and where products appear on this site (including, for example, the order in which they appear). At WalletHub we try to present a wide array of offers, but our offers do not represent all financial services companies or products.

Ask a Question

Question Details 140

Ask Your Question

WalletHub Transparency

We are committed to being fully transparent with our readers. Opinions expressed here are the author's and/or WalletHub editors'. WalletHub editorial content on this page is not provided, commissioned, reviewed, approved or otherwise endorsed by any company. In addition, it is not any company's responsibility to ensure all questions are answered.

Related Categories

Credit Reports & Scores Laws & Regulations

This Week's Top Experts

Hire the best financial advisor for your needs.

Best Offers

Best Credit Cards
Best Checking Accounts
Best Savings Accounts
Best Travel Credit Cards
Best Cash Back Credit Cards
Best Business Credit Cards
Best Airline Credit Card
Best Balance Transfer Credit Cards

Free Credit Data

Free Credit Score
Free Credit Report
Free Credit Monitoring

Now Showing Background