Should credit checks be used in hiring decisions?
Should companies use credit checks to help them decide whether to hire you?
AJC reporters Katie Leslie and Marcus Garner write that a growing number of people affected by record joblessness and foreclosure have a new worry: Will bad credit keep me from getting the job?
While the U.S. Equal Employment Opportunity Commission reviews testimony regarding the use of credit background checks for employment, supporters say the checks are a smart business tool. Critics counter that the reports unfairly discriminate against minorities and those affected by the recession, Leslie and Garner write.
What do you say? How much weight should credit checks be given? Are they relevant? Why or why not?
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414 comments Add your comment
Nautica
October 27th, 2010
10:35 am
Violation of privacy! Plain & Simple!
Can I check the credit of the hiring manager or CEO? It’ll let me know if they’re too “irresponsible” to work for………….HA!
A Hearty Cheese Sauce
October 27th, 2010
10:36 am
Well Nautica I suggest you ask them. Let us know how it works out for ya.
Johnny
October 27th, 2010
10:36 am
Hell NO! Your credit is your personal information and unless your working for the credit bureaus or dealing directly with cash or checks then your credit should not be an issue. Now-a-days everyones credit is in question, so this will only worsen the problem.
JimmyJam
October 27th, 2010
10:37 am
I didn’t look at it that way. Thanks for giving me the big picture.
A Hearty Cheese Sauce
October 27th, 2010
10:38 am
“Now-a-days everyones credit is in question, so this will only worsen the problem.”
No everyones credit is not in question. Dont lump me in with your sorry life. Im nothing like you and never will be so give it up, CHUMP!
Georjajim
October 27th, 2010
10:38 am
Using a credit check to “weed out” folks based on learning their age, etc. (ie using the report for something other than determining the financial responsibility) is not a very realistic argument. It also assumes that the employer is a racist and a very poor businessperson. When I was in position of hiring, I did a very thorough job of pre-screening and interviewing. By the time I was to the point of securing a credit and background check, I was very confident that this person could handle the job and had a high percentage probability of returning the job results for which they were to be hired….it was the final step before offer. Moreover, these persons were aware from early in the process that, if the interviewing process was successful that there WOULD be these final checks done – it was not a “surprise” nor an effort to “weed” someone out. Frankly, I seldom if ever had anyone lose out on an offer at this point in the process because those unqualified fell out early in the process for poor resume construction, lack of sufficient experience, or the simply inability to follow instructions on a written form. F
Furthermore, these persons would often need to have a company credit card (relocation expenses etc.) for travel, and if they didn’t have sufficient credit, the company would have to go through a separate process to get that card FOR them vs. them securing their own card based on their credit.
This whole thought that credit checks are used to “stick it” to an applicant is just silly. It is just one amongst many tools used to make an intelligent guess at future performance and job longevity.
mike
October 27th, 2010
10:38 am
Credit, whether financial or personal, reflects how you handle responsibility as a person. There’s no “right” to a job and therefore you must qualify for the position. If you don’t like the hiring policies then either look somewhere else or start your own business. If I’m taking a risk of a business owner to hire you, then I should feel comfortable about whom I’m hiring.
Recent Air Force Vet Unemployed
October 27th, 2010
10:39 am
Nautica, pull your head out of your fundamental orifice.
Voice of Reason
October 27th, 2010
10:39 am
For those of you who are posting and have a job, saved money, and have good credit, how would you feel if the tables were turned. Don’t think your job is so safe…your bank is so secure that you can’t lose everything you have. Before pride comes great destruction. Many people did have good jobs, did save the money and are on the streets today because life happens.
Dirk Diggler
October 27th, 2010
10:40 am
Good credit is not necessarily a reflection of good character or personal responsibility. I know plenty of total cokehead party animals with perfect credit, because they are artificially propped up by family money. They would not make responsible employees.
Conversely, I know many hard-working, responsible people whose credit has slid simply because they met with financial hardship and didn’t have the resources to recovery quickly enough to save their credit.
Nautica
October 27th, 2010
10:40 am
Johnny, if you agree that it’s your personal information, then I say it shouldn’t be used for ANY job. In the article, Sun Trust (bank) eliminated the use of credit checks b/c there was NO correlation between poor credit and performance! In some countries, it’s illegal for all jobs.
A Hearty Cheese Sauce
October 27th, 2010
10:40 am
“It also assumes that the employer is a racist and a very poor businessperson.’
It assumes no such thing. YOU and your racist self assume such things so you would make a lousey candidate for any job and after your above bigoted statement the remainder of your diatribe is rendered moot and useless.
Truth Hurts
October 27th, 2010
10:41 am
Provide the information or don’t apply for the job if you have a problem with it………..
George Bailey
October 27th, 2010
10:42 am
Nautica, you absolutely can check the viability of a company or CEO. if you don’t like what you see, don’t take the job.
A Hearty Cheese Sauce
October 27th, 2010
10:43 am
“For those of you who are posting and have a job, saved money, and have good credit, how would you feel if the tables were turned.”
*AHEM* The tables were turned dingleberry. In my case my credit stunk I drove a broken down ole Hyundai and was from job to job. All of a sudden I figured hmmm…PERHAPS IM THE PROBLEM.
Guess what…I was.
Got a good job, straightened out my credit, paid cash for a 2008 Acura so it can be done just have to stop the excuse making and GET SERIOUS!!
Anyone can do it so GET STARTED…TODAY!
Nautica
October 27th, 2010
10:45 am
In the good ole’ USA, corporations can run roughshod over your civil rights (and rights to privacy)…..all in the name of of protecting their “interests”……….
A Hearty Cheese Sauce
October 27th, 2010
10:46 am
The sooner you quit screaming racism everytime someone cuts a fart the quicker you will be on your way to enjoying life.
PR
October 27th, 2010
10:46 am
“Poor credit has more to do with income inequality and inability to pay than with lack of responsibility and willingness to pay.”
Ever heard of the Millionaire Next Door?
A Hearty Cheese Sauce
October 27th, 2010
10:47 am
Well I can see Nautica is a full fledged liberal albatross. Good luck honey cuz you are gonna need all you can get.
bobelicious
October 27th, 2010
10:47 am
I have a BBA in Real Estate from UGA as well as a ton of student loans that I have not been able to pay as of yet. This in turns hurts my credit and has effected my ability to get a job, I’m still unemployed. I am white and grew up in the suburbs. Credit should be regulated and privy ONLY to the credit reporting agencies, the lenders that check it, and us the ones who it effects.
A Hearty Cheese Sauce
October 27th, 2010
10:48 am
Hey Nautica…Perhaps the “Nuclear Procurement Lady” will hire ya. She seemed very much PRO civil rights and all that hogwash.
Whatcha say Ms Procurement Lady…wanna help a sista out?
George Bailey
October 27th, 2010
10:48 am
Cheese, I haven’t agreed with your tone so far, but you are right in your self analogy. I was the same way after college. I had 2 credit cards, with a whopping 500.00 dollar limit on both. maxed em out, got an amex. got that shut down for non payment. Woke up one day and decided that this behavior was not going to help me reach my goals. buckled down and paid cash for everything for about 15 years. i didn’t even apply for credit or store cards until 5 years ago, and since then I’v remained debt free with no outstanding balances on any of my plastic. So when it comes to credit checks, I’ve lived on both sides of the fence.
A Hearty Cheese Sauce
October 27th, 2010
10:49 am
Hey Booby…you wanted the student loans, didnt pay on them, now cant get a job. Guess you are in a pickle eh. TOO BAD!
The QuikTrip is hiring all shifts so I suggest you get to work, MISTER!!
Kirk
October 27th, 2010
10:49 am
So what about employers/company’s that don’t have good credit history? I think once you start digging you’ll find out that there are a lot of establishments that have outstanding invoices past 3 months or more with service vendors. You could include some areas of local city/county gov’t offices as well.
Should an establishments such as Georgia Roofing & Construction that’s recently been in the news for bankruptcy with a number of unpaid employees and contractors in hot pursuit be able to do this when they are not credit worthy themselves?
Paris H
October 27th, 2010
10:50 am
“Good credit is not necessarily a reflection of good character or personal responsibility. I know plenty of total cokehead party animals with perfect credit, because they are artificially propped up by family money. They would not make responsible employees”
Sorry, but cokehead party animals propped up by family money don’t need to work. You just shot yourself in the foot with that example!
Nautica
October 27th, 2010
10:50 am
George……if a company had poor viability, it probably wouldn’t be in business.Believe me, if I could fudge my credit numbers the way theses guys fudge their accounts………I’d be fed chairman!
George Bailey
October 27th, 2010
10:51 am
Kirk, as previously stated. A companies financial health is a matter of public record. Through other avenues you can check the credentials of the CEO. If you find them to be lacking, DON’T GO TO WORK FOR THEM.
A Hearty Cheese Sauce
October 27th, 2010
10:52 am
I may have to start a Credit Boot Camp. Have you campers up EARLY every morning for a 5 mile hike, then you all prepare breakfast, then book reading, then classtime, then lunch etc.
Teach you kiddos to be responsbile. And no you cant pay your tuition with a credit card. Cash only!!!
A Hearty Cheese Sauce
October 27th, 2010
10:53 am
“Sorry, but cokehead party animals propped up by family money don’t need to work. You just shot yourself in the foot with that example!”
TOUCHE’!!
George Bailey
October 27th, 2010
10:53 am
Nautica, I agree. However, you can do some digging. Talk to the employees, see if they can refer you to former employees, use the internet to see if there are any investigation under way. There is a lot you can do to decide if you want to become part of the organization. Just as a company does it’s due diligince on a potential candidate, the candidate has the right to do the same on the company.
Visa
October 27th, 2010
10:54 am
“So what about employers/company’s that don’t have good credit history? I think once you start digging you’ll find out that there are a lot of establishments that have outstanding invoices past 3 months or more with service vendors. You could include some areas of local city/county gov’t offices as well.”
Another BAD analogy. Just look at any and all financial instituations (aka Banks). One would say they are the worst at money management yet they require their employees to have stellar credit history reports. The boss makes the rules, if you don’t like the rules, the be your own boss!
Bright Idea!
bobelicious
October 27th, 2010
10:55 am
did not spend borrow 20,000 to work at quick trip. real estate industry quit hiring, could not get a job, loans went in default, hence bad credit, that in turn makes getting a job even harder……walk a mile in a mans shoes before you assume anything….it’s not a pity party its the current state of America…
A Hearty Cheese Sauce
October 27th, 2010
10:59 am
“it’s not a pity party its the current state of America…”
Too much of a generalization, cant buyoff on that one.
OMG Pay Your Student Loans!!!
October 27th, 2010
10:59 am
“I have a BBA in Real Estate from UGA as well as a ton of student loans that I have not been able to pay as of yet. This in turns hurts my credit and has effected my ability to get a job, I’m still unemployed. I am white and grew up in the suburbs. Credit should be regulated and privy ONLY to the credit reporting agencies, the lenders that check it, and us the ones who it effects.”
One of the debts you can NEVER get out of is student loans. You MUST pay those or you are screwed forever. You are SCREWED id you don’t pay those! :0
One Nation Under educated
October 27th, 2010
11:00 am
How many paid troll blog posts does it take to buy an Acura?
deegee
October 27th, 2010
11:02 am
We are about to elect a governor that couldn’t get a job with a mortgage company because of his poor money management skills. Why bother with this discussion?
George Bailey
October 27th, 2010
11:02 am
One, can you tell me how I can paid for this? I love to debate and engage, if there’s money it, I wanna know.
Voice of Reason
October 27th, 2010
11:02 am
@ A Hearty Cheese Sauce…Glad to hear your ok now, but don’t think you can’t end up in the same position again. That’s my whole point. You never know what life will bring you. You do the best you can with what you got and you try to make it better one step at a time. I think the real issue is if you don’t have a job and cant get one because of credit then you will seemingly never be able to pay the debt off.
George Bailey
October 27th, 2010
11:03 am
deegee, I agree. I wouldn’t hire Nathan Deal to watch my dog. Nor would I want Roy Barnes watching my house.
bobelicious
October 27th, 2010
11:04 am
Understand I do not enjoy having bad credit. I like to have the ability to pay my bills. I do not think credit should be a deciding factor for employment. Next they will start checking your marital status, or the neighborhood you live in. Its up there with checking someone facebook profile…totally unrelated.
Bright Idea
October 27th, 2010
11:06 am
Does everyone realize that your auto insurance rates are, in part, based on your credit score too?
Your financial agreements and how well you have honored them are important to lots of people.
A Hearty Cheese Sauce
October 27th, 2010
11:07 am
Ok…Im bored and time to move on. I hope my words of wisdom have been an inspiration to you all and IM SURE they have.
Good luck in your future endeavors and guys dont get your girlfriend pregnant cuz that is an 18 year sentence right there and its probably not your baby anyway.
George Bailey
October 27th, 2010
11:07 am
Stop it Bright idea! You’re going to spoil the argument for everybody!;)
bobelicious
October 27th, 2010
11:07 am
I’m simply stating that its not as cut and dry as “cant hire you, you have bad credit”. Yes some people dont care. Others however have been put into situations they could not avoid which led them to their current credit status. Its not like a criminal record. Should someone not be hired because of a bad divorce, a bankruptcy, or just plain hard times??
Bright Idea
October 27th, 2010
11:09 am
Sorry George, back to the cave for me!
George Bailey
October 27th, 2010
11:09 am
bob, should someone not be hired because they didn’t go to college?
bobelicious
October 27th, 2010
11:15 am
george, depends on the position. We have however been told since grade school that you must go to college…hahaha…
Dream on
October 27th, 2010
11:16 am
“HR, Gotta go, Closing (financial) the 3rd fastest growing co. in Atlanta this week, so my life is pretty good.”
… dream until your dreams come true!
George Bailey
October 27th, 2010
11:19 am
i agree with you bob, there are absolutely positions that need that sacred paper. however, 90% can be easily performed without.
Happily Married
October 27th, 2010
11:21 am
“Understand I do not enjoy having bad credit. I like to have the ability to pay my bills. I do not think credit should be a deciding factor for employment. Next they will start checking your marital status, or the neighborhood you live in. Its up there with checking someone facebook profile…totally unrelated.”
Everyone knows that having a good spouse makes for a happy marriage, good credit, and longer life span. Employers can check that too, did you not know that? There’s a direct positive correlation to every aspect of your life. Ask yourself why you are not successful and be honest with your answers.