What is a Credit Score?
A credit score is a numerical representation of your credit worthiness. There are three main credit reporting bureaus that calculate and report your credit score. Potential lenders, employers, landlords, and others who you authorized to obtain a credit check use your credit score to make decisions about whether to lend you money, rent an apartment to you, or offer you a job.
| Score | Quality of Score |
|---|---|
| 800 – 850 | Exceptional |
| 740 – 799 | Very Good |
| 670 – 739 | Good |
| 580 – 669 | Fair |
| 300 – 579 | Very Poor |
Your credit background check represents your borrowing and repayment history, debt to loan ratio, income, and net worth. The number of open accounts you have and their borrowing limits also play a role it also will determine whether you will be able to get an auto loan. Even if you have not used the available credit, lenders will factor in your ability to use open lines of credit.
How long you’ve had credit accounts, whether you pay on time or pay late, or miss payments affect your score. If you have a bankruptcy, lien, repossession, or eviction it will impact your score.
At its essence, the credit score from your credit background check is a shortcut used to determine your creditworthiness.
When Will You Get a Criminal Background Check?
A credit score and a criminal background check provide different information. Criminal background checks can be done without your permission by almost anyone who is interested except employers, potential employers, creditors or landlords, and insurance companies. Someone you’ve asked on a date can run a background check on you if they have your name and date of birth.
When an employer or other party with restricted access wants to run a background check, they must obtain your permission and disclose to you how it will be used. A credit score and background check are different reports. An employer cannot discriminate against you by running your background if they don’t run background checks on other employees.
Some states have implemented “ban-the-box” laws that prohibit potential employers from asking if you’ve been committed of a crime on the application. These laws do not prohibit background checks after you have been interviewed.
If an employer or other restricted party makes an adverse decision based on your background check, they must advise you of what was in the report. Or if an insurance company orders an investigative background check, which is one where they interview neighbors and acquaintances to learn about you, your habits, and your character, you have a right to a description of the report.
If you attempt to get a job in financial services or other occupations where you are placed in a position of trust, expect that a background check will be done. Many companies run background checks on employees who would go into customers’ homes because they can be held liable for crimes employees commit when their job gave them access to homes, businesses, and occupants who were victimized.
Insurance companies are prohibited from hiring felons unless an exception is made, which sometimes requires the state’s Commissioner of Insurance to grant an exception. Some states with this law do not have a procedure for obtaining an exception.
Together, your credit and background check provide information that determines the types of opportunities you’ll be offered.
Your criminal history, education, and other information that relates to your behavior or character, including the results of pre-employment drug tests, can be included in a background check.
Criminal cases are public records. Unlike your credit report, you do not have an expectation of privacy. However, there are restrictions on how the information in your background check can be used by potential employers, current employers, and lenders.
Will Criminal Background Affect Your Credit Score?
While your incarceration will affect your credit score if you have bills you are unable to pay while you are in jail or prison, if you are able to pay your bills while you are incarcerated, the credit score will not hint at what they’d find in your background check. When you hire the best criminal defense attorney in Los Angeles has to offer, your chances of a criminal conviction decline.
Frequently Asked Questions: Criminal Background Checks and Credit Scores
Does a criminal background check directly affect your credit score?
No. A criminal background check and a credit check are two entirely separate reports pulled from different systems. Running a criminal background check even if it reveals a serious conviction does not lower your credit score or appear on your credit report.
Can going to jail hurt your credit score indirectly?
Yes. While incarceration itself is not reported to credit bureaus, the financial consequences of being in jail or prison can damage your credit. If you are unable to pay bills, credit cards, loans, or rent while incarcerated, those missed payments and defaults will appear on your credit report and lower your score.
Can employers in California run a background check without your permission?
No. Employers, potential employers, landlords, creditors, and insurance companies must obtain your written consent before running a background check. If an adverse decision is made based on what they find, they are required to notify you and disclose what was in the report so you can dispute any inaccuracies.
What is California’s “ban-the-box” law and how does it protect applicants with a criminal record?
California’s ban-the-box law prohibits employers from asking about criminal convictions on a job application. Employers must first evaluate a candidate’s qualifications and make a conditional offer before inquiring about criminal history. This gives applicants with a record a fair chance to be considered based on their skills before a background check is run.
Can expungement in California help with background checks?
Yes, to a degree. A California expungement under Penal Code 1203.4 dismisses the conviction from your record, which can make it less visible to private employers conducting background checks. However, expungement does not erase the record entirely, it can still appear in certain government and professional licensing checks. It also does not directly repair your credit score, though improved employment prospects can help your financial situation over time.