Can an employer refuse to hire you because of bad credit?

Can an employer refuse to hire you because of bad credit?

An employer shall not fail or refuse to hire or to recruit an individual for employment because of the individual’s credit history or inquire about a job applicant’s or potential job applicant’s credit history. The prohibition does not apply if the employer is a financial institution, or the report is required by law.

Can I be denied a job because of my credit?

Some states and major cities have enacted legislation that protects applicants from having their credit histories used against them in hiring and other employment practices. However, the majority of states still allow private employers to use poor credit history as a lawful reason to reject a job seeker’s application.

How do I explain bad credit to my employer?

Provide your potential employer with valid reasons for your poor credit reports, such as identity theft or financial circumstances beyond your control. Write a formal letter of explanation outlining the reasons that you previously provided for your poor credit rating and send it to your employer.

Does credit score affect employment?

Does an employer credit check hurt your credit score? Your credit score won’t be affected by a potential employer conducting a credit check on you. “An employment inquiry is treated like a soft inquiry,” Ulzheimer says. “Not visible to other parties (other than you) and not considered in credit scoring systems.”

Can a person not get a job because of their credit?

According to a report from think tank Demos, one in 10 workers with credit card debt say they’ve not been hired because of their credit report. About one in seven of those with poor credit histories say their credit report was the reason they weren’t hired.

Can a company use your credit report to hire you?

But your credit report can still sway a potential employer. While employers follow strict rules about how they’re allowed to use information, especially rules about discrimination, they are still allowed to use the information in your credit report to influence their hiring decision.

Why do employers check your credit when hiring?

The results showed 25% of the HR professionals use credit or financial checks while hiring for some positions, while 6% check the credit of all applicants. Credit checks are more likely for jobs that involve a security clearance or access to money, sensitive customer data or confidential company information.

Can a non salaried employee get a credit check?

In general, if you’re a non-salaried worker in an entry-level position, your job should be exempt from employer credit checks. It’s not uncommon for an employer to violate the law when reviewing an individual’s credit report.