Pre-employment credit checks are subject to regulations under the Fair Credit Reporting Act (FCRA) and state laws, which restrict their use in hiring decisions. Employers must be careful not to violate these laws when conducting background credit checks, as doing so can result in significant civil and fiscal penalties. The FCRA generally allows employers to perform pre-employment credit checks only for jobs that involve managing or handling large sums of money, are managerial roles, give access to company trade secrets, provide access to personal financial information, or are legally required by law. Additionally, some states and cities have their own laws regulating when credit information can be used in hiring decisions, with varying exceptions and requirements. Employers should consult with their legal team to determine which laws apply to them and what best practices suit their business needs.