Can I refuse a credit check with an existing employer?

Technically, you can refuse to allow your employer to check you credit report, but there is nothing stopping them from penalizing you for it. Often times, current employers will conduct a credit check to help determine best candidates for promotion, reassignment, and retention so refusing them access could make it harder to advance within the company or in some cases, stay with the company at all.

If your credit reports are not in the best shape and you are concerned that an employer will hold that against you, many people suggest taking preemptive action. Order your credit reports yourself if you don't already have a copy so you know what is on there. Then, offer to sit down with your employer and explain the circumstances behind any negative listings. Often times, bad credit is caused by things beyond your control like an illness in the family or a divorce which employers may be sympathetic to if you are willing to communicate with them.

At the end of the day, employers can hold it against you if you refuse to allow them to access your credit reports or if your credit reports are not clean so it is up to you to determine which route gives you the best chance of success.

The Fair Credit Reporting Act does give you some rights with regard to having your credit reports pulled by an employer. First, in most industries, employers must get your permission before accessing your credit reports. Second, if they take any adverse action against you based on your credit history (refuse to hire you, fire you, demote you, etc.), you are entitled to receive a copy of your credit report and a written summary of your rights under the Fair Credit Reporting Act.

If an employer violates your rights, you may be able to file a lawsuit against the company.