why do employers perform a credit search on potential employees?

Answer 1

Possibly a case of once bitten, don't you think ! ! !

Answer 2

Several reasons really. Some positions require a person to handle money, some require a person to oversee assets, and some put people into positions which could allow for easy access to company funds. With these types of jobs you can easily see why the employer would want a credit check; to see the potential for theft.

Other positions which do not fall under these categories would have a much different reason. Here, the employer would want to see how responsable the employee is. How well he/she can budget. If the employee is reliable.

Lastly, employers don't want employees who will render them to have to perform a garnishment since it makes for a burden to the employer.

Answer 3

I think this is really silly i have read some of your thought, but i am an honest person and have worked with money in all my jobs and my last one being in a post office i have excellent references BUT i dont have a very good credit report as when i took out different purchases i was in a relationship and bought a house and had a child BUT then it all fell apart i was subject to domestic violence and split up from my partner but i kept the house and found that my mortgage was more important to pay, so my other bills slipped away, i have only been able to work part time but now able to work full time and want to got back to post office or bank work but have been told that i would have to have a credit check even to work in the office answering the telephone.SO WHY DO I NEED TO HAVE A CREDIT CHECK i know im honest and so do my other employers but there references don't mean a thing

Answer 4

Two more reasons a company includes a credit history check:

1. The employer wants a person who will show up at work, ready to work. Someone harrassed by creditors and collection agents has less energy and focus at work. Less energy means lower productivity. Less focus can mean an industrial accident and a workman's comp claim.

2. Overaggressive collection agents (CAs) will start calling the debtor's work number, even the debtor's coworkers to embarrass the debtor and collect the debt. Read the horror stories right here in this forum. The employer doesn't care for the consolation that the CA is in direct violation of the Fair Debt Collection Practices Act. It cares to have employees who feel safe and happy while at work. Why hire a troubling credit history?

Answer 5

I don't understand why an employer would do it. I saw this once while applying for a job delivering milk.
The way I see it is that if you need a job, you need money so why would they think someone who has great credit is going to work for peanuts?
These places hiring common people need to think twice because someone may be looking to do a good job for some money who happens to have bad credit due to the fact that the real world is ruff, and I think it is discrimination to scan a credit check. Anyone who can work this job should not be judged by a third party credit score, same as you should not discriminate based on race or sex.
Things are really getting out of control/Company's expecting someone perfect to work a crappy job the company puts up on a pedestal for a wage that is worth nothing.
Getting by costs money.........

Answer 6

It's an easy way to find out if someone is responsible or not. Which if you are going to be handling money or have a company credit card they need to know this.

Same reason that insurance companies now run credit checks before they insure someone.

Answer 7

I would suggest it's so they can decide if you can be trusted with money - for example will you be working in Order Processing, Deliveries, Finance Dept., Payroll ??

Also, if you are in Sales, they may want to issue you with a Company Credit Card.

Answer 8

Because if you are seriously in debt, the more likely you are to steal from them or give out information that is proprietary. Desperate people do desperate things and your credit report gives them an incite on how well off you are. Hope this helps!!

Answer 9

i guess credit history tells a lot how a person is...aside from the background check of course....

Answer 10

As and indicator to see if they'd be responsible on the job.

Answer 11

Because if you have a bad credit history, you are a high risk at stealing.