What disqualifies you from working at a bank?

Asked by: Madelyn Hintz  |  Last update: January 22, 2026
Score: 4.6/5 (68 votes)

The FDIC regulates who banks can hire. These regulations are laid out in Section 19 of the Federal Deposit Insurance Act. According to Section 19, banks cannot hire an individual who has been convicted of a criminal offense that involved “dishonesty or breach of trust or money laundering.”

What kind of background check do banks do?

The candidate's name, age, and address. Credit report and credit score. Criminal records, especially those pointing to theft, fraud, embezzlement. Employment history, particularly their experience for the role and if they've received disciplinary action for things like information breach, theft, etc.

What prevents you from working at a bank?

While each financial institution may be different, it's common to check an applicant's identity, criminal background, credit, financial history, employment history, education, qualifications, and licensing. It's also common to search for civil lawsuits, foreclosures, and bankruptcies.

How far back does a bank background check go?

Criminal background checks typically go back 7 to 10 years, but this can vary based on state laws and the type of job. For instance: In states like California, criminal background checks go back seven years.

What disqualifies you from a federal background check?

An applicant will be disqualified if he or she was convicted, pled guilty (including 'no contest'), or found not guilty by reason of insanity for any of the following felonies regardless of when they occurred: Espionage or conspiracy to commit espionage. Sedition or conspiracy to commit sedition.

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26 related questions found

What would make you fail a federal background check?

Warning signs on a background check include multiple periods of unexplained unemployment, inconsistent information, short periods of employment, minimal relevant job experience, no required education or training, professional license issues, dangerous criminal convictions, job-related criminal convictions, bad ...

What is a red flag on a background check?

A red flag in a background check is anything alarming or concerning about a person's past. This could be a history of breaking the law, lying about work experience or education, or other serious issues. However, not all red flags are the same. Some might be small and not that serious, depending on the job.

How far back do banks check?

Mortgage lenders will usually assess the last six years of your credit history. Your credit report contains information on your financial behaviour (including any missed payments or defaults) from the last six years.

What disqualifies you from working at a bank for a background check?

The FDIC regulates who banks can hire. These regulations are laid out in Section 19 of the Federal Deposit Insurance Act. According to Section 19, banks cannot hire an individual who has been convicted of a criminal offense that involved “dishonesty or breach of trust or money laundering.”

What is the hardest bank to get a job from?

These are the 10 hardest investment banks to get a job at in the world🌍👇 1. JP Morgan 2. Goldman Sachs 3. Bank Of America 4.

What credit score will fail a background check?

Credit scores typically do not show up on a background check. Most background checks for employment do not seek credit information, but rather, criminal history. They are typically looking for whether you are dangerous to employ. "Some pre-employment screenings do go deeper and look at credit.

How far back does the FDIC background check go?

Under Cal. Civ. Code 1786.18(a)(7), California mandates that a conviction can't be reported when it's older than seven years. Arrests that didn't lead to convictions can't be reported regardless of how much time has elapsed.

How do banks check your employment?

Mortgage lenders usually verify income and employment by contacting a borrower's employer directly and reviewing recent employment and income documentation. These documents can include an employment verification letter, recent pay stubs, W-2s, or anything else to prove an employment history and confirm income.

Does Wells Fargo hire misdemeanors?

Several factors can disqualify a candidate from passing a Wells Fargo background check. These include criminal history, especially felonies, and misdemeanors related to theft, fraud, or violence. Poor credit history can be another disqualifier since financial acumen and responsibility are crucial in banking roles.

What looks bad on a background check?

You may be disqualified from a high security clearance job if your record contains any of the following: a single serious crime, a series of lesser offenses, embezzlement, income tax evasion (or other financial crimes), sexual offenses, crimes related to excessive alcohol or drug consumption, a history of personality ...

What are Level 3 background checks disqualifying offenses?

Level 3 Background Check Disqualifying Offenses

A Level 3 background check looks at serious felonies and misdemeanors but goes beyond that by checking for offenses such as identity theft, fraud, or other white-collar crimes.

What kind of background check does a bank do?

Background checks include a review of the applicant's criminal record, credit report, and educational and employment history. All of this information must be gathered under applicable federal laws regarding consumer privacy and nondiscrimination.

How far back can I check my bank records?

For checks, this retention period is 5 years. Beyond those minimums, banks will often keep records of closed accounts for 7-10 years after closure. This allows them to reference for any potential issues. After about 10 years, banks usually archive the records offline or to microfilm/digital storage.

Do underwriters look at spending habits?

Spending habits

And they will look to see if you are regularly spending less than you earn consistent with the savings you are claiming. No matter how frugal you might be most lenders have adopted a floor on the living expenses they will accept.

What are red flags on bank statements?

Your bank statements reveal your regular spending habits and how you manage your finances. Lenders look for red flags like frequent overdrafts, returned payments, or insufficient funds charges, which indicate financial stress or poor money management.

What is a deal breaker in a background check?

This can include misdemeanors, felonies, and any other criminal convictions. While not all criminal records are deal-breakers, certain offenses, particularly those related to theft, violence, or fraud, can significantly impact your job prospects.

Will a job tell you if you failed a background check?

The Fair Credit Reporting Act (FCRA) provides you with the following rights: Potential employers must notify you if a background check is the reason you didn't receive a job offer. You must receive a copy of your background check if you request one. You have the right to dispute any errors in your background check.

Why is getting hired on the spot a red flag?

They offer you the position too quickly.

If you only have one interview, the interviewer doesn't ask you many questions, and they offer you the job on the spot; this is a red flag. This usually signals they see employees as disposable, expect you will quit soon, and need a warm body to fill the position.