Why d some employers do credit checks on perspective employees?

Question

Why can't they understand sometimes good people make mistakes?

Answer 1

To see if you're a responsible person. I know that does seem kind of unfair, especially if you are working to correct your credit report, but I guess that's life. Did you know your insurance company (car, homeowners, etc) can also periodically check your credit report and raise your rates if warranted? This is in all that good, fine print.

Answer 2

I asked the same questions yesterday after I had an interview. My friend (who I asked) said they want to see if you are responsible or not. I said "Well, that makes some sense if the job that I applied for dealt with money all day or monetary transactions of some sort, but not for any other job". And I agree, I am a very responsible person. I am a single mom, trying to make ends meet (otherwise I wouldn't be applying for the job, right?) So in the past year or so, I have had to pay things late or not at all to get through the month. And then lets not mention in college all the phone companies that pissed me off so I refused to pay them...those all show up on my credit as well. So I really think that this practice sucks. Check my criminal record, check my driving record, and employment history all you want. But my personal finances is something that I don't want people sifting through thank you very much!!

Good luck.

Answer 3

You have answered your own question. As an employer, would you want to take a chance on "a good person who makes mistakes" ?

Employers like to choose the best available from a prospective pool of potential employees. The mere fact that you are a responsible debt manager leads them to believe that the same values will hold in the workplace.

Answer 4

In today's world employers can not afford to make mistakes when they hire someone.

By checking your credit, they find out how stable you are, how responsible you are and if you have had any charge-offs, repossessions, foreclosures, tax liens, child support etc.

Most people are creatures of habit, and if they have shown that they can not be trusted to live up to their obligations in the past, why would a potential employer think that they would live up to their obligations in the future?

Your car insurance, home insurance and renters insurance is also based on your credit report. This is one thing that employers can use to disqualify a person and not worry about being charges with discrimination.

Answer 5

its true that people make mistakes...but a credit score is a good indicator of responsibility, stability, good judgement, rational thinking and functionality

there is a difference between one late payment and vehicle repossession. claiming bancruptcy vs defaulting on a loan... these are strong indicators of a persons level of maturity. If some goes and spends all that money on a house and to put nice things in it and then they are late every payment... to me that shows the person doesn't even care...or was irresponsbile with spending...or was not in a stable enough life style, etc...

I won't hire people with poor credit scores... you can even consider that they might even be more prone to theft becasue if they can't borrow money and they don't have money, but they need money well that could be bad.

I work in banking... you have to have good credit to do this... you sometimes have to give advise on credit... well who wants to get advise on credit from someone who can't even handle there own.

Answer 6

They are looking to weed out potential thieves. Everyone checks you credit. You insurance companies do as well to see if you are to far in debit. They want to make sure you don't burn your house down just for the money. Same with employers they don't want people skimming their money. Can't blame them it's a whole new world of thieves out there.

Answer 7

I've heard of this but am against it. It's invasion of my private life and if I knew that they did this, I would hot-foot-it outta there as I cannot work for a person/company that would be so invasive.

Perhaps they think that a credit background indicates some sort of personality trait. Far fetched, twisted philosophy.

Answer 8

because employers and potential employers don't care about you (people in general). they care about themselves & their money. if you have bad credit, really bad credit, they may assume that you will try to steal from the company or do something "stupid" because you are trying to "fix" your credit. sounds ridiculous, but ... it's true that they don't care about you, or people that they already employ. it's about the all mighty dollar. they are out for themselves.

Answer 9

To see if u were a good employee and if u were ever late to work.. and so on..