Will Your Credit Score Show Up on a Background Check?

Key takeaways

• Your three-digit credit score won’t appear on a background report or employment credit check. With that said, potential landlords may be able to see your credit score on certain reports.
• Employment credit checks can show financial information like your payment history, current debts and bankruptcies. Some states limit employment credit checks or ban them entirely.
• Potential employers and landlords need your written consent to run a background check and credit check.

What do background checks show?

Background checks reveal key details about your personal history that employers use to make hiring decisions. Depending on where you live and the job you’re applying for, your background report may contain different information than someone else’s.

Most states allow employer credit checks that show a summary of your financial history, but others have stricter rules. In Washington, for instance, employers can only check your credit report if it’s directly related to the job requirements or if the credit report is required by state or federal law.

Here’s a quick reference for what a standard background check and credit check shows, unless restricted by state law:

Who can access your credit score?

Background checks typically include a summary of what appears on your credit report — if they include any financial information at all. Certain groups and companies can request to see your credit report.

But only select people and groups can request to see your credit score. Here’s who can check your score:

• Landlords. Your credit score may appear on a landlord’s credit check to help them gauge your ability to pay the rent.
• Financial institutions. When you apply for a credit card, mortgage or personal loan, the company will likely run a credit inquiry that includes your credit score before offering you a loan or card.
• Insurance companies. In certain states, car insurance companies can check your credit score. If you have bad credit, insurance companies generally consider you a risky borrower and are likely to offer you higher rates.
• You. You can check your own credit score, and checking your own credit won’t damage it.

Know your rights: Background checks and credit checks

The Fair Credit Reporting Act (FCRA) limits who can see your credit and how they can use that information. Here’s what you need to know about your rights when it comes to background checks:

1. You have the right to know if your credit is run. Employers have to tell you in writing if they plan to do a background check or run your credit.
2. Your consent is required. Employers can’t run background or credit checks without your written permission.
3. You have the right to know if the report is going to be used against you. The employer must tell you if they plan not to hire you based on the information in your report. You also have the right to dispute wrong information with the credit bureau and with the employer.

These are just three of your most important rights when it comes to background checks. Learn more about your rights under the Fair Credit Reporting Act (FCRA).

States that limit employment credit checks

State law limits employers from checking your financial history in the following states and districts: California, Colorado, Connecticut, Hawaii, Illinois, Maryland, Nevada, Oregon, Vermont, Washington and Washington, D.C.

These states make it illegal for an employer to check or consider your credit, but they all have exceptions. Some of the most common exceptions are for law enforcement jobs, jobs at banks or other financial institutions, supervisor/management roles and jobs where you’ll have access to sensitive financial information or large sums of money.

What happens if you refuse a background check or credit check?

If you refuse a background check or credit check, the employer, landlord or financial institution can refuse to move forward with your application for a job, apartment or credit card.

Prepare for a background check

If you’ve just learned that a new job or apartment requires a background check, you’re probably strapped for time. Here are three things to do to prepare — two of which you can do quickly.

1. Check your credit report. You can check your credit report for free once a week at AnnualCreditReport.com. This should only take a few minutes.

2. Dispute any errors. Errors like accounts in collections or unpaid bills can bring down your credit score dramatically. Dispute any errors you see. It can take over 30 to 45 days to fix an error on a credit report, but knowing that your report has inaccurate information will prepare you for any conversation with your prospective employer about your credit history.

3. Boost your credit score. Improving your credit score takes time, but getting started now can give you a leg up on any future background checks. You’ll save money, too — raising your score from “fair” to “very good” could help you save over $39,000 across different types of debt, like car loans, mortgages, credit cards and personal loans.