Why do employers do a credit check?

Question

I recently applied at fortunoff, and got to the second level of the interview, which was called an integrity interview, the lady said she will do a credit and background check, my credit isn't all that great, its around the 500, will this affect my chances of getting the job?

Answer 1

It might show you are irresponsible and you don't honor your committments. It also might be a indicator of carelessness. If they check they probably won't offer you the job unless you are just starting so are low with no negative items.

Answer 2

A lot of employers do credit checks now it show how responsible you are. I may effect the interview but it may not. I know employers have been doing background checks for years because I'm a manager. The company there using for the background might also do a credit check as part of there service.
If they tell you that's the reason why you didn't get the job which is discrimination they will say someone else had more experience or something. But since you know it's low explain yourself if you got into a issue and got behind be honest a lot times this helps. Everyone gets in jam more then once in there life. Good Luck

Answer 3

Basically it is as the interview was called..the integrity interview. In a lot of lines of work such as Finance or Retail they don't want someone who is a credit risk. If someone owes money, they might feel that that person would be more open to stealing from the company to fix their situation.

Hopefully you know why your score is that low. If it is because of a lot of unpaid bills that are still unpaid that could be a big red flag. If it is something like you just declared bankrutpcy, you actaully have no debts so they might want to know more detail on the reasons why.

Since you know it is low, you could explain to them in advance that you have a bad credit report and be honest with them as to the reasons why. If they are going to decline you, they will do that anyways. However, if you tell them in advance they may cut you more slack.

Answer 4

They do it as part of a character reference these days. Same for car insurance as there are statistical correlations with lower credit and bad driving apparently. My credit isn't superb due to some personal issues--it got questioned only once and my explanation is a good one and it has never been a problem otherwise. If they deny you the position, you can ask why and if that is the issue, explain everything. It is probably better for them to see your honesty or the reason behind it than throw away a perfectly good candidate in this job market.
Good luck!

Answer 5

before everything i think of that any one who believes that doing a credit examine on a ability worker as a fashion of sorting the wheat from the chaff and that employers will earnings from in basic terms using persons that have valuable rankings is a tad niave .shall we face data right here , if it have been the case which you lost your interest at this contemporary time on account which you had misdemeaners as regards your finacial affairs then i might estinate that the unemployment cost contained in the united kingdom might shoot up ten fold .. provided that the commonplace public persons have at some degree in out lives neglected a record fee a loan fee , fell in the back of with the hire , skipped over the latest telephone invoice , advised the Provident agent to call lower back next week ..you get my glide .Secondly , damaging fee history isn't continuously the only clarification for having a damaging credit status ... everytime a private loan business enterprise or different does a examine against your call , the score is adversly affected , so it might look that any business agency who makes use of this as a skill to decide trustworthyness and responsability isn't assured of its fulfillment .If the present government have any will to re boot the economic device then this initiative will in basic terms serve to place a spanner contained in the works i think of .the various 1000's who've lost jobs and function fell with the aid of the way-side at present will i'm advantageous grow to be the very people who would be discriminated against the main with the aid of this as they attempt to make ends meet and unavoidably " rob peter to pay paul " .. and discover themselves in a vicious circle.So all in all i fail to recognize ways this endevour with the aid of the bourgeoisie would be helping the two themselves or the proletariat .. and if something , certainly its the latter who would desire to be doing the credit checking .. afterall its them that rely on the trustworthyness of the former to come back up with the products is it not ?

Answer 6

Credit reports are a lot like report cards when we were in school.

Only instead of showing how good or bad we are doing in our studies, they show how good or bad we are doing with managing our debts. As well as public records like bankruptcy's, judgments, collections, law suits and tax liens.

People are creatures of habit. We tend to do the same things over and over and expect the results to somehow be different. (The definition of insanity).

If a potential employer looks at someones credit and sees that they have not been responsible with their personal debts, they will be inclined to think that they will not be responsible with their professional lives either.

Answer 7

where i work (financial services), it's a given.

When I applied for my job, my bankruptcy had just been discharged for about 7 months. I told the interviewer the circumstances of the bankruptcy (divorce) and they were fine with it... I got the job, and have been there 7 years.

Answer 8

Employers who check the credit of job applicants believe that applicants who meet their credit obligations are most likely to be conscientious employees who meet their obligations to their employers.

some employers dont do credit checks

Answer 9

Shipwoman is right. Credit history reflects responsibility. More insurance companies are using it to adjust rates for individuals too.

Answer 10

personally i dont think they should,some ppl have low credit scores because of things beyond there control like medical,company size downs any number of reasons,just because you have a low credit score dont mean your gonna rip anyone off as a couple have hinted at in answering this question.