A specific credit score typically does not cause a background check to fail, as most employment background checks do not review credit scores. Instead, they focus on other crucial aspects of an applicant's history.
How Background Checks Typically Work
Most employment background checks are designed to assess an applicant's suitability for a role by reviewing their criminal history, employment verification, and educational qualifications. The primary goal is to ensure the safety and reliability of potential employees.
Common components of a standard employment background check include:
- Criminal History Checks: Searching local, state, and national databases for felonies, misdemeanors, and other criminal offenses.
- Employment Verification: Confirming previous employment dates, job titles, and sometimes reasons for leaving.
- Education Verification: Confirming degrees, diplomas, and attendance at educational institutions.
- Driving Records (MVR): For positions requiring driving or operating company vehicles.
- Professional Licenses and Certifications: Verifying the validity of any required professional credentials.
These checks are primarily looking for whether an individual poses a risk, such as a criminal record that could indicate danger or unsuitability for the role.
When Credit Information Might Be Considered
While credit scores themselves are generally not part of a standard background check, some pre-employment screenings do go deeper and may look at an applicant's credit history or report. This is more common for specific types of positions, particularly those involving financial responsibilities, significant assets, or high levels of trust.
Here's a comparison of typical vs. specialized background checks:
Aspect | Typical Employment Background Check | Specialized Employment Background Check (May Include Credit) |
---|---|---|
Primary Focus | Criminal history, employment, education | Financial responsibility, trust, security clearances |
Credit Score Review | Rarely included | Typically not the score, but the report details |
Credit Information | Not usually sought | May review credit report for financial integrity (e.g., bankruptcies, large debts, judgments) |
Key Concern | Safety, reliability, qualifications | Financial trustworthiness, potential for fraud or bribery, security risks |
It's important to note that even when credit information is reviewed, it's typically the details within a credit report that are assessed, not a numerical score. Employers might look for:
- Bankruptcies: Indicating significant financial distress.
- Foreclosures or Repossessions: Signs of inability to manage debt.
- Collection Accounts: Unpaid debts that have gone to collections.
- Civil Judgments: Court-ordered financial obligations.
- High Levels of Debt: Especially if disproportionate to income, which could indicate financial instability.
These financial indicators might raise concerns for roles where financial integrity is paramount.
Examples of jobs where credit history might be relevant include:
- Positions handling large sums of money or financial transactions (e.g., accountants, financial advisors).
- Roles with fiduciary duties or access to sensitive financial data.
- Senior management positions.
- Government jobs, particularly those requiring security clearances.
- Jobs in the financial services industry, such as banking or investment firms.
Employers must comply with the Fair Credit Reporting Act (FCRA) when using credit reports for employment purposes, which requires them to obtain the applicant's written consent and provide specific disclosures.
Ultimately, while no specific credit score will "fail" a background check, certain financial behaviors reflected in a credit report might be considered for specific, financially sensitive roles, influencing an employer's hiring decision.