What do employers look for in a credit background check?

I’m a data analyst for a Bank and they are doing a periodic background check that I have never done before. Right now, all of my accounts are current, but on my credit history, I have 11 delinquent accounts . These are all student loans from the same lender, Nelnet. This delinquency happened early last year. I was over 90 days past due on 11 of these loans

When this delinquency happened, I was living in San Francisco making $52k a year. I was able to sustain until I had to get surgery for a medical condition. That’s when I fell behind on making payments. As a data analyst, I only organize data and explain data to partners, I don’t manage money or advise others. What do employers look for when looking at a credit background check? Is my job in jeopardy?

9 Answers

  • 3 weeks ago

    When I was going to work for a bank they didn't care if people had a low score, only county court judgements would have stopped someone getting the job. I was told if I have no CCJ's I'm getting the job.

  • Anonymous
    3 weeks ago

    They're white collar criminals looking to see who'd be a good victim of identity theft and corruption.

  • Anonymous
    4 weeks ago

    Can you think of any employer that would do a credit background check if they did not care what is in there?

    You have a reason and that you don't manage money helps mitigate things I guess. But make no mistake, its a huge negative.

  • Job security: you're "probably" safe.

    Rationale for check/what they look for: to start, your FICO scores and history which will show them how good you are at managing your own finances.  In my previous job my team had access to a tonne of data and financial information for various stakeholders so confidentiality was vital.  You have access to proprietary data, whether you know it or not.  "You" may not see it as a big deal but your employer does.  And they should.  Also possible they should have done it before hiring you, and are simply catching up.  

    The bad news: people who can't manage their personal finances and who have delinquencies are a liability.  How do I know this?  Because when you look at people who get into trouble and do illegal stuff, it's usually the people in dire financial circumstances that do the bad things.  Does this mean you're a criminal?  Of course not.  BUT, if you're in line for a promotion or when you're looking at dividing up assignments, this is something that an employer may choose to look at.  Much of what employers do these days is about mitigating risk.  Not saying I agree, I'm saying this is how things are.  Good luck.

  • What do you think of the answers? You can sign in to give your opinion on the answer.
  • 4 weeks ago

    Well yes it does but u have a way bigger problem, u need to take care of those student loans or your paycheck or bank account can be Garnished(meaning it will be automatically take out and can’t buy nothing on credit since it will be trashed)u shouldn’t have made them delinquent u could have made a smaller payment but now they can have a judgement against u.Try to get the job but work on these accounts

  • Anonymous
    4 weeks ago

    Yes, you may not qualify for the job. 

    Your employer is doing a credit check because bad credit:

    1)  May indicate you are irresponsible; and

    2)  May give you incentive to steal.

    If your employer didn't care about your financial behavior, why would they pay to check it?

  • 4 weeks ago

    Is the bank doing a background check or a credit check?

    Credit check checks credit.

    Background check checks criminal history, civil lawsuit history and driving record.

    Are you still in California?

    Under California law, an employer cannot use a consumer credit report for employment purposes unless the employment is for a few defined employment positions.  Those potentially relevant in most positions include:  1) a managerial position, 2) a position that involves access to confidential information (including financial information, security data, trade secrets), 3) a position that involves regular access to bank or credit card information, social security number or date of birth, or, 4) a position that involves regular access to cash totaling $10,000 or more of the employer, customer, or client [which would include a donor; cash could include credit and checks].

    Since the information that you see is likely related to confidential data, doing employment related credit checks would be legal. However, I don't think your job is in jeopardy, unless your employer has concerns about data management or your job performance.

  • Robert
    Lv 7
    4 weeks ago

    I would guess that if you have a reasonable reason for the delinquency (illness and related employment issues) and you have since been working to restore your credit you'll be ok. Have you spoken with the creditor to try and refinance the loan considering the situation? Are you making regular payments now that you are healthy and back to work. My guess is that it will not be a huge issue.  

  • 4 weeks ago

    Impossible for anyone here to know whether your job is in jeopardy.  I'm surprised they did not do a background/credit check when you were hired, that is pretty standard for banks and financial services companies.  They are looking for two things; financial stress and poor judgement.  An example of poor judgement is not having medical insurance.  If your loans are now current, the first issue goes away leaving just the second.

Still have questions? Get answers by asking now.