Posted by Elaine Sedlock on 6/18/08 1:34pm
Msg #251836

Never heard of anyone using credit report as hiring

requirement. Is this common? Smacked of discrimination but I googled and apparently it's legal. Doesn't seem fair though. If a person is actively seeking gainful employment and has a clean background record, good work history, negative drug test results . . . what do they care? Love to hear some opinions about this.

Reply by hcampersFL on 6/18/08 1:38pm
Msg #251837

Elaine if it is a job that is involving money then I can understand it. If someone is having trouble with finances and around a great deal of money they maybe tempted.

I know with the military this is a requirement, they don't want someone that has finacial problems to be tempted to sell government secrets. It has happened to often before.

Reply by Elaine Sedlock on 6/18/08 1:40pm
Msg #251839

That makes sense, but no money in this case, so . . .? n/m

Reply by lindetteh_PA on 6/18/08 1:42pm
Msg #251840

I have not only heard of it but I have had to pass that requirement on my last 2 jobs . I think it depends on the position if you have access to peoples sensitive information (ex SS# dob addresses) ect. they want to know if you pay your bills on time also when my sister tried to get a job with the city or the state I forget which one she was turned down because of her credit score

Reply by Elaine Sedlock on 6/18/08 1:46pm
Msg #251841

Ahh, I gotcha. This would involve taking orders which . . .

would require handling people's personal info. Oh well. "Everything for a reason," right? Thanks!

Reply by Matilda Archer on 6/18/08 1:52pm
Msg #251843

Re: Ahh, I gotcha. This would involve taking orders which . . .

I have had plenty of jobs screen my credit and my current employer has done it as well. I agree with some of the reasons they do it but more so I disagree because some people get into financial hardship and honestly cannot afford to pay certain bills. How can you pay debt if you have no income?????

Reply by Charles_Ca on 6/18/08 1:59pm
Msg #251844

This may not be a popular viewpoint but one has to realize

that a debt is a promise, an obligation, and the credit report can actually be a good bellwether of an applicant's strength of character.

Reply by Ti/Ga on 6/18/08 3:30pm
Msg #251865

Re: This may not be a popular viewpoint but one has to realize

One could still have strength of character and with GA being a right to work state that doesnt stop you from getting fired. It takes a while to get rehired especially when they look at your last job and credit report. catch 22

Reply by Elaine Sedlock on 6/18/08 1:59pm
Msg #251845

Precisely my point, Matilda! And I agree to a point as well

. . . but I think a person should at least be given an opportunity to discuss the circumstances leading to their financial state of affairs prior to being barred, especially if they have had, over the course of decades, consistently maintained excellent credit and good standing. It may not do any good, but I emailed the company requesting they at least review my resume/application/cover letter even though I can't meet their strict credit requirements. In most situations, however, policy is policy and there are no exceptions! We shall see!

Reply by Gerry_VT on 6/18/08 1:59pm
Msg #251846

Company credit cards

Some companies issue company credit cards to all their employees who will travel or do other things that will end up on an expense account. Naturally they want some assurance that you can handle a credit card.

Reply by Susan Fischer on 6/18/08 2:10pm
Msg #251848

It's a common practice. Why? When evaluating

a prospective employee, perhaps a company asks:

Does this applicant show good judgement in personal finances? Does the applicant honor debts? Live beyond his/her means? How might this judgement affect the applicant's work ethic?

If there is a fiduciary element to the job, and if the applicant in financial jeopardy, is there a potential risk associated with that jeopardy in hiring this applicant?

In considering longevity, is this applicant likely to stay with the company, or continue searching for higher-paying employment to meet the demands of personal debt? Will our cost of hiring/training be rewarded with this applicant's continued employment with us, or will we be back to square one at any moment?

These are just a few, and there are many other considerations. While it may not seem fair, and may even be intrusive, it is - one - tool available to prospective employers to evaluate job applicants.

Job seekers, armed with up-to-date and accurrate credit reports, have an advantage over applicants with error-ridden, un-explained credit reports. One report cited something like 7 out of 10 error rate on credit reports. Credit reports are also used to help calculate auto insurance rates in some states. Increase your employability, insurability, financial credibility by paying close attention to your credit reports.

Reply by CF on 6/18/08 9:29pm
Msg #251950

Re: It's a common practice. Why? When evaluating

This is a newer trend....and will continue to evolve into more and more fields for employment. I have been credit checked for 2 previous positions. Both were corporate sales and marketing positions. Employers think that if a person is responsible with their credit they may be responsible with their position. In today's climate employers think that they can govern your life in and outside of work.

Reply by NCLisa on 6/18/08 2:21pm
Msg #251849

The statistics show that it is not the people with poor

credit that do the embezzling. It is the people with good credit that live above their means that usually commit these types of crimes. Either there has been a change of status, and they want to continue to live that way, or they want what the Jones have and to live better.

The same has been proven in insurance claims. Insurance companies in many states pull your credit, and you are penalized if you have poor credit. Statistics again show that is the wealthier clients with good credit that tend to commit insurance fraud. Having autos, jewelery or priceless possessions reported stolen. Even burning down businesses an homes if they get into finanical trouble.

Clark Howard talks about this on his radio program all the time. I have never allowed a prospective employer to check my credit, and they've never had a problem with it.

Reply by Stamper_WI on 6/18/08 3:55pm
Msg #251871

Re: The statistics show that it is not the people with poor

Insurance companies use credit reports to determine rates as do lenders. Also claims made. I recently met with my insurance provider and the premium on all my insurances went down when he did a credit report. I had to nudge him a bit. If you are looking hard at your budget and know you have good credit, this may be a way to save something on your montly bills.

Reply by JanetK_CA on 6/21/08 12:16am
Msg #252394

Re: The statistics show that it is not the people with poor

I could be wrong, but I don' t think there is necessarily a correlation between a person's income level and their credit rating, which is the whole point. Those people making lots of money, and spending even more, probably don't have good credit. We've most likely all seen lots of them refinancing over and over again. And I'd guess those types of people have a lot to do with why companies check credit reports. I agree that they would likely be the types to commit fraud. (In all fairness, though, some of them have gotten to that point because of illness, divorce, natural disasters, etc.)

A person of good character who knows how to live within their means, on the other hand, may have sufficient savings and investments to manage through a bout of unemployment without putting their credit at risk. And this doesn't necessarily mean they earn lots of money. I'm pretty sure checking credit reports has been a very common practice for a long time, at least in my state.

Reply by Nomad/OR on 6/18/08 3:09pm
Msg #251856

I had to submit one once as a requirement

for employment. It was for a large jewelry supplier in New Mexico and I would be handling precious stones. They wanted to make sure I didn't have reason to 'lose any gemstones'.

Reply by Ti/Ga on 6/18/08 3:09pm
Msg #251857

It would seem that people with not so good credit would NEED a job to get things together. Maybe not handling cash, I guess.

Reply by ZeeCA on 6/18/08 4:24pm
Msg #251885

Prob if they have to do for one they HAVE to do for all...

fair employment law

Reply by Barbara___IL on 6/18/08 5:05pm
Msg #251894

I know a psycholgist who uses cresit reports when she hires office help.

Reply by Glenn Strickler on 6/18/08 6:54pm
Msg #251913

I had 40 years in retail before I retired and when one of the stores in the chain had cash issues, the first thing that was done was to pull the credit report. Employers do it all the time. Of the dozens of people I personally caught, only 1 had a decent credit report and even that one was on the low side of good. It goes to integrity and judgment. I never pulled the report when hiring, though. Someone could have bad credit due to some errors along the way or being unemployed or medical bills , and if they are looking for a job and qualify, they deserve a chance to fix the credit report ....