Stellar Snippets
Yes, a job candidate can be denied a job by a potential employer due to poor credit history in many US states.
Employers in 39 states and the District of Columbia are allowed to use credit as a lawful reason to reject an application.
However, 11 states have banned the practice in most cases, but with exceptions, such as jobs that involve finance.
Employers may consider a job candidate's credit history as part of the hiring process for jobs with sensitive information.
This is especially for jobs with financial responsibilities, handling large sums of money, or access to confidential info.
A poor credit history may give employers little to no confidence in hiring you for financially sensitive jobs.
If you are denied a job due to bad credit, federal laws require them to send a “pre-adverse action notice”.
The prospective employer is required to send this along with the reason for why you are being rejected for bad credit.
A copy of the credit history is added to let you know they are planning to reject their application.