pre-employment background checks
Credit scores are now being included in many pre-employment background checks. One survey showed that 35 percent of human resource departments are now using this information to assist in determining who they do or do not hire. The idea behind this is that those individuals who have good credit scores have demonstrated responsibility and are, therefore, the ideal employees. These individuals are viewed as more reliable and less likely to call in sick without reason or arrive late.
Another reason for the recent popularity of background checks that include credit scores, is the fact these reports almost always list an individual’s previous residents and employers. With a large portion of the population falsifying or inflating their employment history, credit reports are now assisting businesses in weeding out the untruthful
Employers that require this information are looking for specific things such as a pattern of unpaid bills. Forgetting to pay an electricity bill once in two years is very unlikely to trip warning signals in an employer’s mind. That being said, repeated offenses will place a potential employee in a negative light.
For those with low credit scores this can be increasingly nerve racking, especially since it’s much harder to increase one’s credit without a job to pay the bills. Knowing what cannot be held against an individual in a background check can make a difference.
Although a history of unpaid bills can effect an employer’s decision on whether or not to hire and individual, businesses are not allowed to discriminate against anyone who has had to file bankruptcy. Doing so violates the Fair Credit Reporting Act and can be disputed. Negative credit information that is older than seven years will not effect one’s ability to get hired.
Sadly, lack of credit can be held against an individual. Although some individuals prefer to deal with cash and rent as opposed to buy, a completely blank credit report is seen as a strike against a potential employee by some companies.
If one is denied a position due to the results of credit information that surfaced during a background check, the company that request the investigation has let the individual know why. For some this may give the opportunity to clear up misrepresenting facts, such as how a pattern of unpaid bills was not intentional neglect but due to a long and severe illness or other serious circumstances.
January 15th, 2008 at 11:48 am
WHAT IN THE HECK DOES BAD CREDIT HAVE TO DO WITH WHAT TYPE OF WOKER YOU WILL BE? I MEAN ARE THEY GOING TO START ASKING PEOPLE HOW MANY TIMES A MONTH THEY HAVE SEX? AND BASE WHAT TYPE OF PERSON YOU ARE ON THE ANSWER YOU GIVE THEM? I MEAN IT MAKES NO SENSE ??!!!!
April 23rd, 2008 at 7:57 am
What does responsibility have to do with credit? I am a 33 year old single mom who has raised my daughter on my own for 16 years! Thats responsibilty! Knowing I had to put food on the table and pay my bills to have a place for her and I to live has always made me a responsible hard worker! But because I had a few bills that i could not pay they want to deny me a $30,000 a year job. They act like it’s a million a year. I don’t get it either. Unfortunately you need a good paying job to fix your credit was you get yourself in a jam and credit should have NOTHING to do with employment or insurance premiums for that matter!
August 29th, 2008 at 6:29 pm
I have been turned down for eight jobs in the last four months because of my credit history. These were NOT jobs that required any money handling or bookeeping responsibilities. I have no criminal background and a clean driving record. Have never been in jail. I haven’t sued anyone or been sued. Have not been disciplined for any license violoations in my profession. I am getting very disgusted with the widespread use of this practice to hire/fire. It is truly unfair. With medical bills so expensive if you don’t have medical insurance, or even WITH medical insurance, if one of your loved one’s has a catastrophic illness, it can drive you into bankruptcy. If this country would take care of its own in terms of medical insurance, there would be a lot less bankruptcys-but that’s a whole other subject. We need to unite to have this unfair practice eliminated from background checks for employment.