Why do some jobs do a credit check as a pre-employment screening?

Answer 1

Companies do it based on the mistaken assumption that thieves are only people in debt. How funny.

But if your job is bond-able, debt won't stop you from getting the bond (personal experience) but a bankruptcy could.

Also, and most people don't know this, checking your work references IS considered a "credit check" by Federal law. Reference checking falls under the Fair Debt Reporting Act. And that is why all applications have a place for the applicant to sign that gives permission for the company to do "credit checking".

If your credit is bad, and you know for sure the company is checking your credit, just address it in the interview. Explain your side, and hope for the best. The outcome will depend on the company, and the HR person

Answer 2

For two reasons; first, they want to know if you have huge debts which might tempt you when handling company money or assets. Second, they want to know that you're financially stable, responsible, likely to be there a while, etc.

Answer 3

Your credit tells them your level of responsibility you have. (if you don't pay your bills your not responsible)but also I agree they don't want someone heavily into debt that might steal from them.

Answer 4

I think they figure if you are heavily in debt then you might be apt to steal from them.

Answer 5

to find out the possibilty of a garnish
on paychecks which costs money