Why are employers allowed to check your credit before hiring you? isnt that an invasion of privacy?

Answer 1

Credibility and judgment. If you are behind in all of your bills or don't pay your bills, it's not likely that you can handle a job as an account supervisor. And, if you receive an income and don't pay your bills or are late on paying all your bills, all the time, then again, there are some occupations that if you were hired in, you would be more of a liability than an asset.

Answer 2

Unless you are handling money directly, I think it's a complete invasion of your privacy to do a credit check. However, many employers have started checking credit as a way to weed out some individuals. Don't steer away from a job just because they say they are going to do a credit check though. Many employers have you sign a form agreeing to a background and credit check but actually only do a background check. However, if you are trying to get a job in finance, you can pretty much expect to have your credit checked.

Answer 3

They want to be sure you aren't a thief. If you are very high in debt or have a lot of collection accounts you are at risk of taking money from the business. Also high debt means that collectors might contact your future employer in attempt to reclaim losses. Employers don't want to be disturbed by collection efforts. Also things get complicated for the payroll department if there is a judgment and the employer has to garnish wages.

Good luck on your job search. G-d bless !!

Answer 4

No. It would give a reflection on the nature of your responsibility to your obligations. Insurance companies also run credit checks because there has been found to be a correlation between bad credit history and the increased number of claims.

Anyone contemplating marriage should get a credit report on their prospective spouse.

Answer 5

IN MY PERSONAL OPINION IT DEPENDS ON THE JOB.

If you are applying for a position where you are controlling my money, and your financial condition is bad, I would not want you handling my money. If you are $20,000 in debt and the job pays 80% of your bills on a monthly bases, I believe I would be a FOOL to let you control my $150,000 a week payroll. If you are applying for Manager of Plant operations, which does not have any financial responsibilities, I would make the check, but the negative circumstance does not effect my decision to hire you.

PS: I will be looking to see if you are using your position to make money on the side. (Pay of from contractors that do business with my company).

Forewarned is forearmed: YES - it is important if I don't want my throat cut.

Answer 6

They want to find out if you pose a possible financial risk in hiring you. A poor credit report often indicates someone that is capable of stealing from a company, or might otherwise put the company at risk.

Answer 7

no. but I have bad credit and I don't steal my background check should determine if I have a criminal past. If I was stealing from an employer my bills would be paid.

Answer 8

Nope - Employees with bad credit have proven to be a risk for in house theft and susceptible to offers from thieves for company secrets.
Companies spare themselves future problems by avoiding problem employees from the start.

Answer 9

it is legal and in some industries necessary but fair it is not as just because someones history is bad does not mean they are

Answer 10

No if you can not manage your business why should i let you manage mine.

Also if you have a lot of debit you can be a security risk.