{"id":4672,"date":"2016-04-04T10:47:37","date_gmt":"2016-04-04T15:47:37","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/employment-law-and-human-resources\/checking-the-credit-information-of-job-applicants.html"},"modified":"2026-05-01T04:40:00","modified_gmt":"2026-05-01T09:40:00","slug":"checking-the-credit-information-of-job-applicants","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/employment-law-and-human-resources\/checking-the-credit-information-of-job-applicants.html","title":{"rendered":"Checking the Credit Information of Job Applicants"},"content":{"rendered":"\n
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Checking the Credit Information of Job Applicants<\/h1>\n\n
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\n By Melissa McCall, J.D.<\/a> | Legally reviewed by Susan Mills Richmond, Esq.<\/a>\n | Last updated\n
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Editorial Note: We earn a commission from affiliate partner links on FindLaw. Commissions do not affect the editorial integrity of our legal content.<\/p>\n\n <\/div>\n \n

\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

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A pre-employment background check is a tool used by employers to review a job applicant\u2019s credit history and criminal history. Employers must follow the procedures outlined in the Fair Credit Reporting Act (FCRA) by obtaining written consent and providing disclosures to avoid violations.<\/p>\n\n <\/div>\n\n\n\n

Hiring new employees is a significant\u00a0employment\u00a0decision<\/span>\u00a0for which you need ample information. Pre-employment\u00a0<\/span>background checks<\/span>\u00a0are routine.\u00a0Prospective employers<\/span>\u00a0have many options, including a\u00a0criminal history<\/span>\u00a0check and a credit check.<\/p>\n

Prospective employers<\/span>\u00a0should take care when ordering a\u00a0job candidate<\/span>\u2018s\u00a0credit history<\/span>. Doing so could raise legal issues. Federal and state laws dictate how and when an employer can ask about a\u00a0job applicant<\/span>\u2018s\u00a0credit information<\/span>.<\/p>\n

More information on the\u00a0job applicant<\/span>\u00a0can help you make the right\u00a0hiring decision<\/span>.\u00a0Pre-employment\u00a0<\/span>background checks<\/span><\/strong><\/a>\u00a0are increasingly popular, made easier by the internet. But, checking a prospective employee\u2019s\u00a0credit information<\/span>\u00a0could bring legal problems if done improperly or in a state that bars the practice.<\/p>\n

Pre-Employment\u00a0<\/span>Background Checks<\/span><\/strong><\/h2>\n

Employment checks often come toward the end of the\u00a0hiring process<\/span>. One reason for this is the expense that\u00a0potential employers<\/span>\u00a0face when conducting a\u00a0background screening<\/span>.<\/p>\n

Potential employers<\/span>\u00a0must pay for\u00a0employee\u00a0<\/span>background<\/span>\u00a0checks<\/span>, so they should only screen\u00a0job applicants<\/span>\u00a0once they give them a conditional\u00a0job offer<\/span>. Employers often order the following types of screening checks through their\u00a0human resources<\/span>\u00a0department:<\/p>\n