An employment credit check takes place when a potential employer checks your credit history to see how you’ve handled consumer debt. Employers obtain this report from third-party companies.Learn more about employment credit checks and how to prepare for them.

What Is an Employment Credit Check?

In addition to employment history and criminal background checks, some employers also run credit checks on applicants and use that information to make hiring decisions. A National Association of Professional Background Screeners (NAPBS) survey reports that 31% of employers ran credit checks on some applicants, and 16% checked all applicants’ credit. Most background screenings occurred after a conditional job offer.

Most often, employers check the credit of those applying for jobs that deal with money. For example, positions in banking, accounting, and investing often require credit checks.

How Employment Credit Checks Work

Once you’ve been offered a job (or sometimes a promotion), the employer will request a credit check from a third-party company. An employment credit report includes identifying information, such as your name, address, previous names and addresses, and Social Security number.

It also shows the debt you have incurred, including credit card debt, mortgage and car payments, student and other loans, and your payment history of those debts and loans, including late payments.3

However, there is certain information that isn’t included in an employment credit report, like your date of birth. This information is excluded because it could be used to discriminate against candidates due to age. It also doesn’t include your credit score.