Why did the company need Fair Credit Report for the people they are hiring?

Question

Don't you think that over the limit of people privacy?? Don't you think the most important thing that the company should look for are the report from DMV office. All they need to know is the worker legal or not right!! Not the Credit behind people's life. Even people don't have good history from old job or had bad credit, as long they are looking for jobs. The Company should give them a chance right?!

Answer 1

Credit reports can tell a company more than information about your credit. In fact, most often the credit background is not even investigated. What the companies look for is the past addresses -- do they align with your work history, does it show stability or are you moving around every few months, etc. Companies will also use it as an independent verification of your SSN (to match your SSN card). Depending on the type of job you are searching for, this may be used to give a read on your personal capability with finance (i.e., Accountant or Mortgage Lender). Most often, though, it is only used as a cursory verification of other information found in the application process.

If, however, a company claims that they cannot hire you based on information garnered through this report, you may have grounds for a lawsuit and should discuss the matter with an attorney.

Oh, and be sure that nowhere in your application process do you disclose your Yahoo login (fakeid), as it may raise more questions. :-)

Answer 2

How about because the company is considering hiring you? A credit report is a good indicator of what type of person you are. Do you pay your bills in a timely manner, or will you take an obligation and set it aside if you feel like it?

They check your credit report these days when your automobile insurance is coming due, and a poor credit report will raise your rate.

Yes, it's legal. No, your credit report is not private and protected. It's a matter of public record, and a handy tool for evaluating people in many situations. Landlords can and do look at it, along with any business looking to extend credit to you.

Live with it.

Answer 3

Some companies use the credit report if you are going to have financial dealings with your job. And some use it as a way to measure your stability. Is it fair or right, maybe not. Is it legal yes.

Answer 4

Studies have shown that employees with better credit records are often more productive employees. Someone that has had a lot of trouble mighthave debt collectors chasing them at work, might be under a lot more stress than normal because of all their overdue bills, might have to be missing work to go file bankruptcy in court, etc. Its completely legal, and I dont blame them at all. I certainly dont think it should be a deciding factor, unless you have 2 similarly qualified people, and you use it to tip the scales one way or the other. This just sounds like sour grapes from someone with a bad score to me.

Answer 5

Lots of employers will do this to see if you are bondable.

They will especially check this if you are applying for a position in a bank or an investment company, not only for the bond, but also if you are giving investment advice to others they would likely want to know if you are qualified to give such advice.

Answer 6

It's not the fact of your credit. Some companies like to do background checks on potential employees to see if they meet that security requirements. (banks,corperations, ect.)

Answer 7

The company may require that their employees be "bondable" for insurance purposes. If you have a history of bad debts, you probably aren';t, and their insurance company may not cover them if they hire you.