Assuming that you have a good business reason to order a credit report on a job applicant, it's always a good idea to get the applicant's consent first. Some states, in fact, require such consent. In addition, the Federal Fair Credit Reporting Act requires you to let an applicant know if he or she has been denied employment because of something in a credit report. Criminal History Asking an applicant about his or her arrest record or making a hiring decision based on that record can violate state and federal anti-discrimination laws. Criminal charges are often dropped or found to be without merit.
Convictions are another matter.
Anti-discrimination laws generally allow you to inquire about an applicant's conviction record and to reject an applicant because of a conviction record that suggests the applicant wouldn't be a good fit for the job. If you're hiring a delivery truck driver, for example, it wouldn't violate anti-discrimination laws to reject an applicant based on a drunk driving conviction. In some states you can't ask about convictions for minor offenses or misdemeanors that go back more than five years if the applicant has had a clean slate since that time. When a job requires an employee to drive, it's wise to inform applicants that you'll be checking on their driving record and to actually do so. You usually can obtain driving records for a modest cost from the state authority that issues driver's licenses.