When an Employer Checks Your Credit for Hiring Purposes, What Are They Looking For?

When an employer checks your credit for hiring purposes, what are they looking for?

Some companies may ask to check your credit report as a part of their application process. If you provide a potential or current employer with written permission, they can obtain a limited version of your credit report, but they will never receive your credit score. Inquiries for employment purposes do not impact your credit scores.

A credit report provided for employment purposes includes information about your loans and credit cards. However, to protect your financial security and comply with equal employment opportunity laws, employment credit reports omit your account numbers, birth year and spousal information.

Employers are looking for a few things in your credit report:

Financial Health

Employers are looking to see how you manage your finances. If you apply for a job that involves managing or handling an organization's money, they will want to see that you can manage your personal finances well. The employer may look at your credit report to ensure there are no signs of financial issues. If you manage your own finances well, you will likely manage the organization's finances responsibly.


Checking a potential employee's credit report can be used as an additional security measure to help verify an applicant's identity. A company may compare the identifying information from your credit report to the identifying information in your application to further verify who you are and help prevent employment fraud.

Keep in mind that your credit report doesn't tell a potential employer whether to hire you. Generally, an employment credit report is used as supplemental information in addition to your application information, references, and skills.

Check out the scope to hear answers to all the questions asked.

Do you have questions about credit?

Join our live video chat every Tuesday and Thursday at 3:00 p.m. ET on Periscope. Rod Griffin, Director of Public Education at Experian, is available to answer your questions live.
Scoped on: 7/10/2018