Background checks continue to be one of the most common parts of the hiring process in the United States. In fact, even entry-level jobs will usually verify your identity or check with references. That said, many background checks for more established roles will require a criminal records check, drug testing, and much more. Still, you may be wondering if your credit score can impact your hiring chances, especially because it’s a public record.
So, does a background check include a credit check? The short answer is maybe, so it’s important to understand the different types of background checks and when they may include a credit check. Read on to learn more in our comprehensive guide.
What Is a Background Check?
First things first: it’s important to establish what a background check is. Simply put, a background check is a process that the government or a business uses to evaluate a candidate before hiring them. Aside from the interview process, most organizations want to work with people who are trustworthy and reliable, and the best way to provide this is with a background check.
For these reasons, you’ll find that most background checks involve combing through someone’s public records to verify their identity, check for a history of criminal activity, and much more.
Does a Background Check Include a Credit Check?
Whether or not a background check includes a credit check depends on the job. Many jobs don’t require one, but jobs in the financial sector tend to require some type of credit check, especially if you’re going to be a fiduciary.
Other jobs that require a credit check tend to include federal jobs, law enforcement, and jobs that require a high level of trust and reliability.
If you want to determine if a job requires a credit check, we always recommend contacting the employer for the best results.
How Far Back Does a Credit Check for Employment Go?
Credit checks for employment tend to go back seven to ten years. This is due to the protections under the Fair Credit Reporting Act (FCRA). You’ll find that credit checks tend to go back seven years for most general credit-related inquiries, but if you have a bankruptcy on your record, that can show up for 10 years.
How to Prepare for a Background Check that Includes a Credit Check
When it comes to background checks, some of them will include a credit check, and it’s important to prepare for these checks.
The good news is that we have two surefire methods that will help you learn everything you need to know about how to prepare for a background check that includes a credit check.
UnMask
One of the best ways to prepare for a background check that includes a credit check is to use UnMask. This is due to the fact that UnMask will help you find all available public records associated with you. In other words, you’ll be able to find everything that someone will find when they run a background check on you.
All you need to get started is your first and last name, and then UnMask will do the rest. Simply enter your information into UnMask’s background check search to find all available public records that will show up during the background check process.
Check Your Credit
Another great way to prepare for a background check that includes a credit check is to check your credit history. This can be done with tools like Credit Karma, but most banks have tools that help you check your credit now.
You’ll want to check your credit score, sure, but it’s also important to check your full credit history. This includes bankruptcy records, loan information, and additional details.
Does a Background Check Include a Credit Check? Our Final Thoughts
So, does a background check include a credit check? At the end of the day, whether or not a background check includes a credit check depends on the type of background check. While many background checks don’t look for this information, if you plan on working for the government, a financial institution, or in a job that requires establishing trust with people, there’s a good chance that you’ll need to submit to a credit check.
The good news is that you don’t have to let a credit check take you by surprise. By using tools like UnMask to check your public records, along with tools that help you check your credit history, you can know what will show up on a background check before it does.