There is no minimum credit score for a job. Employers do not even have access to your score but some may check your credit history as part of the hiring process, especially if the job involves financial responsibilities or access to sensitive information.
Employers are most likely to check your credit when you apply for positions in banking, finance, or government. Late payments or high credit card balances could be an indicator of financial duress and may signal to an employer that you’re more likely to commit fraud or theft. However, there are certain regulations employers must follow if they check your credit.
You Have Rights When an Employer Checks Your Credit
If an employer requests to check your credit history, they must follow the rules outlined in the Fair Credit Reporting Act (FCRA). Under the FCRA, employers have to obtain your written consent before checking your credit and inform you if they take adverse action based on your credit history, such as not hiring you. They also need to provide you with a copy of the credit report they used.
Some States Limit Employer Credit Checks
You can be denied a job because of your credit in 39 states. On the other hand, the following 11 states generally outlaw the practice:
- California
- Colorado
- Connecticut
- Delaware
- Hawaii
- Illinois
- Maryland
- Nevada
- Oregon
- Vermont
- Washington
Even those 11 states have exceptions, though. A common exception is checking your credit for jobs at financial institutions or that involve handling money. Employers in these states can also check credit late in the hiring process, such as after an interview.
Employers Consider Factors Other Than Your Credit
Your credit is not the only consideration for an employer making a hiring decision, and a poor credit history does not necessarily disqualify you from getting a job. However, having a good credit history can demonstrate that you are responsible and financially stable.
You can check your credit report and get personalized-credit improvement tips for free here at WalletHub.
This answer was first published on 06/16/23. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.
FAQs
Employers don't get a credit score during this process, and thus there is no minimum credit score for employment.
What credit score is too low to get hired? ›
There is no minimum credit score for a job. Employers do not even have access to your score but some may check your credit history as part of the hiring process, especially if the job involves financial responsibilities or access to sensitive information.
Can my credit score stop me from getting a job? ›
You may want to consider the state in which your employer is based in, as this may impact your employment as well. According to Experian™, these states are not allowed to make hiring decisions based solely on your credit: California.
Can you be denied a job because of bad credit? ›
In the majority of states, employers can deny you employment if you have bad credit. Some states and cities have passed laws that prohibit the practice, though there are some exceptions, such as for jobs in the financial sector.
Is 650 a good credit score for a job? ›
There isn't a definitive answer to whether a 650 credit score is a good credit score. But both FICO® and VantageScore® say 650 is considered a fair score.
Can I lose a job offer because of bad credit? ›
In cases where the job candidate has had serious financial difficulties, an employer might want to consider rescinding the job offer and look for candidates with a better credit history.
What credit score is acceptable for a job? ›
Employers don't get a credit score during this process, and thus there is no minimum credit score for employment.
Can a job fire you because of your credit score? ›
Most people know that employers can check your credit score while hiring you, but they can also do it while you work there—and let you go if the results are bad. If you were to make a list of things that would get you fired, where would you rank “having a bad credit score”?
Do jobs look at credit scores? ›
Though prospective employers don't see your credit score in a credit check, they do see your open lines of credit (such as mortgages), outstanding balances, auto or student loans, foreclosures, late or missed payments, any bankruptcies and collection accounts.
Do employers care if you have debt? ›
Even though your finances are very personal, your debt and credit could be important to your employer and it's accessible to them via background checks. Having a lot of debt might be viewed as a risk to them when they consider hiring you.
15 steps to improve your credit scores
- Dispute items on your credit report. ...
- Make all payments on time. ...
- Avoid unnecessary credit inquiries. ...
- Apply for a new credit card. ...
- Increase your credit card limit. ...
- Pay down your credit card balances. ...
- Consolidate credit card debt with a term loan. ...
- Become an authorized user.
Generally, it takes around 4-12 months to reach the point where you can apply for a loan. It will take a few months to get to 750 if your score is currently somewhere between 650 and 700. However, if you have a credit score of less than 650, it will take more time to improve the score.
How fast can I get my credit score to 700? ›
The time it takes to raise your credit score from 500 to 700 can vary widely depending on your individual financial situation. On average, it may take anywhere from 12 to 24 months of responsible credit management, including timely payments and reducing debt, to see a significant improvement in your credit score.
How to explain bad credit to potential employer? ›
A letter explaining bad credit should be honest and transparent. Acknowledge your financial situation, and explain any extenuating circ*mstances that may have contributed to it. Honesty is critical since any lies or omissions will inevitably come to light and could jeopardize your job prospects.
What is the lowest credit rating for a company? ›
Credit ratings range from the highest credit quality on one end to default or "junk" on the other. A triple-A (AAA or AAa) is the highest credit quality, and C or D (depending on the agency issuing the rating) is the lowest or junk quality.
What is lowest bad credit score? ›
What Is a Bad Credit Score? On the FICO® Score☉ 8 scale of 300 to 850, one of the credit scores lenders most frequently use, a bad credit score is one below 670. More specifically, a score between 580 and 669 is considered fair, and one between 300 and 579 is poor.
