Employers can legally check a candidate's credit history, but they must first obtain written consent from the candidate.
The federal Fair Credit Reporting Act (FCRA) regulates the use of credit reports for employment purposes.
Employers must provide a "pre-adverse action notice" and a copy of the credit report used to reject the candidate.
Some states have additional laws that restrict the use of credit reports for employment purposes.
These additional laws protect job candidates from discrimination in employment based on their credit history
Employers may use credit reports to verify your credentials and look for excessive debt or bad money management.
However, not all employers conduct credit checks, and it is usually done after a decision to hire is already underway.
Overall, employers can legally check a job candidate's credit history, especially for financial or confidential jobs.
However, they must follow the FCRA regulations and obtain written consent from the candidate before doing so.