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
gamama
October 28th, 2010
10:49 am
First Sergeant:
Really?
This is not a politcal blog, but i’ll take the bait. Have you ever taken a risk ? Start your own business? Made a decision you later regretted ? If you say no – then you wouldn’t understand.
Deal financial issues…I’m assuming you are stating the fact he is facing bankruptcy. He took a risk by lending money to his daughter/son-in-law to start a business. That business did not work out…daughter/son-in-law filed bankruptcy leaving Papa Deal holding the bill. You can’t run backwards and change the decision of investing…Many people have lost big time in their investing these days.
Would I hire Deal to make financial decisions – you betcha! Let’s take a look at Donald Trump…he learned from his failed mistakes in the 80’s when he had to file bankruptcy and look at him now – he’s back on top with oodles of money!
As I understand this issue -
Understanding
October 28th, 2010
12:04 pm
The majority of jobs that built this country has nothing to do with peoples credit history. We as humans need to be more realistic about the things we do or say in life. We need think first before we acted. Research ideas before trying to implement them. Determine what impact it’s going to have on the rest of american citizens or even the world.
The companies that comes up with these trivial job hiring requirement are selfish and unconcern about the working class peoples that has made them milllions. Why would you check the credit of a janitor, carpenter, truck driver, maid, cook, construction worker, secretary, or maintenance worker etc ; these are the peoples that built this country to where it is today; which was base on hardwork, sweat and tears. Probably more than half of the laborer of this country at some point in their life has experience bad credit.
If you check their work history most of these peoples that earn their living through hard work , swear and tears are more productive with excellent performance record. These so call office heads, CEO’s and Managers of some of these companies have no clue of what goes on in a middle of lower class family life. Most of these peoples work hard just to make ends meet, and sometime still experience financial diffculties.
These so call CEO’s, office heads and managers need to start concerning themselves more with make decision on how to reduced cost without eliminating any of the employees within the company workforce, improve the quality of item(s) produced in this country, quanitity, safety of the employee within the work force, moral of the employees, needs of the employees and their families and find innovative ways to motivate the employees to perform at their maximun potentials.
Performing credit checks on applicant applying for a job has noting to do with their ability to meet and exceed in their job performance. Some peoples experience financial problem for many different reasons. Example: sickness, low paying job, and todays we are dealing with a poor performing job market. Peoples are constantly losing their job and homes.
Some really smart CEO, office head or manager has persuased companies that it’s a good idea to start checking job applicant credit history. making a decision to introduce credit checking into companies hiring practice is ludicrous and should be banded. This will only add to the unemployment problem that we are already experiencing. (Politicians) This country is headed in the wrong direction. We need to learn to start loving each others find more inovative ways to help each others and work together as teams to improve in areas that’s going to benefit this country. (Stop the fighting amoung ourselve we can’t accomplish anything fighting each other. Someone need to standup and be accountable and make decisions on what’s best for this country.) God Bless America
FB
October 28th, 2010
12:22 pm
What about folks who are working a job whose credit went south due to medical expenses or illness, their spouse losing a job, divorce, etc? Should they be fired for having bad credit to make way for a “good credit” new hire. If you can’t fire for having a poor credit rating, you can’t deny hiring a qualified applicant based on credit rating- especially if the denied candidate is a minority, an older worker, et al. That would aggravate the discrimination charge as you cannot prove credit impacts job performance. If anything, people with debt in general are all potential candidates for one day having something derogatory on their file, ie identity theft, or loss of income and since most Americans have some debt, it is the ultimate tool of broad based discrimination. Plus, it is an invasion of privacy as ones debts are very personal obligations. Since low and middle income folks are vastly disproportionately effected by the winds of the economy, this form of discrimination is especially brutal as it keeps them unemployed or stranded in low paying jobs unable to migrate to companies with job openings but a credit stipulation to employment. So credit and previous felon are equal causes for rejection for a job??????
DepotExtra
October 28th, 2010
12:34 pm
For all of you folks, who are outraged that an employer could use bad credit to keep you from a job, welcome to the world of “employment at will.” Right now an employer can fire you or refuse to hire you for being gay, too fat, pregnant, etc. Credit is just one more standard. However, I doubt those of you who own a business think that the government or anyone else should tell you who you have to hire or fire. Shouldn’t an employer be able to use any reason? Are employers now obligated to hire you with less than complete, public knowledge? This is not an invasion of privacy. This info is available to the public just like your drunken Cancun spring break photos are on your Facebook page. Yes, job performance ought to be the standard, but it rarely is. Did any Home Depot stockholder or employee think Nardelli performed well enough to be entitled to $300 million in pay? A company or private employer is crazy to make hiring and firing decisions based on anything but performance, but shouldn’t they have the final say? They are the ones who have to pay you. Plus, just because you have a bad credit score, you may still be hireable if it can be explained away as a result of a layoff, medical bills, etc. It is just one more piece of information that may or may not give an employer some indication of your performance potential.
FB
October 28th, 2010
1:11 pm
This is on-online job post by Kinetix. All of your qualifications are void based on CREDIT… for help desk job!
Hi,
One of our clients located downtown has a 3 month temporary Helpdesk Support opening. Pay is $17 per hour.
A CREDIT CHECK IS REQUIRED FOR ALL EMPLOYEES ON ASSIGNMENT WITH THE CLIENT – EXCELLENT CREDIT IS REQUIRED!!! (ALL ACCOUNTS MUST BE CURRENT, CAN NOT HAVE ANY UNPAID COLLECTIONS, CHARGE-OFFS, LIENS OR JUDGEMENTS).
Additional qualifications for the position, in addition to passing the credit check are –
– Minimum of 1 year experience within a Helpdesk environment providing Remote Support and Customer Service.
- Working knowledge of Microsoft Office (all versions) and an understanding of Microsoft Exchange.
- Must have ticketing system experience, ITIL framework is a plus.
- Strong interpersonal skills and the ability to listen and explain solutions to technical and non-technical users in a concise manner.
- Proven ability to organize work in an efficient manner to excel in an interrupted environment.
- Virtual Desktop experience is a plus.
- Demonstrative ability to troubleshoot Windows XP and Windows 7.
- Understanding of system hardware troubleshooting.
- Comfortable communicating at various level of the organization.
- Good oral and written communication.
If you know of anyone who might be interested in this position & meets the qualifications, please ask them to forward me their resume.
morons
October 28th, 2010
1:21 pm
Well, we know who not to work for now, don’t we?
No, credit is not PUBLIC knowledge. You cannot, as an individual, get your own credit score without paying or loan application, and certainly not someone else’s credit report. DING-DONG!!
FB
October 28th, 2010
1:26 pm
I know folks in Real Estate both residential and commercial who are dead on the vine through no fault of their own as well as car dealer employees who were thrust out of work, former employees of manufacturers who had to layoff dozens if not thousands who are struggling to make it on unemployment, not to mention self-employed business owners forced to close their doors who never qualified for unemployment or a buy-out and who were personal gaurantors for certain corporate debt and are being sued by creditors.
Being a good citizen who paid their bills are now denied employment based on this global recession and the worst economic downturn since the Great Depression’s effects on their credit rating?? Really?
Folks aren’t applying for a loan- they are applying for the most part, survival. Dignity. And to tell them no based on credit, in essence saying, “we don’t trust you” or “you’re unreliable” or “you’re not worthy”, or “get outta here you deadbeat” is a disgrace.
morons
October 28th, 2010
1:30 pm
can i get the credit scores of the executive team of the company i’m applying for? no? why not?
DaDa
October 28th, 2010
3:53 pm
Margaret Gray, you should not have gone there. It was the ever loving Bush and the Repbulican people who can not manage their own budget and think they can manage Georgia ( Nathan Deal)like you who got the Obama-loving people in the position we are in today. All Obama-loving people don’t have bad credit and unqualified for a position. I am an Obama-loving person with a Master’s Degree. I am a Budget Analyst with a branch of the Government handling billions of dollars everyday and you can check my credit whenever you like. Let’s hope you don’t lose your job for a year and your credit rating drops while you are searching for a new job. Let’s see how you like being DISQUALIFIED without REQUISITE SKILLS AND GOOD CREDIT. HOLLA!!!
Casper
October 28th, 2010
4:55 pm
Dada from 3:53 pm -
Do you ever feel guilty getting that ‘Affirmative Action’ position as a “Budget Analyst” you didn’t earn while several superior candidates with better education & grades, more humility, a higher level of couth and better manners were passed over for that position simply for being more pale than you?
Trelley
October 28th, 2010
5:01 pm
Wow, DADA.
Don’t get enough attention?
FB
October 28th, 2010
7:53 pm
DaDa, Your credit rating is not a pre-requisite for a government job so to pull your credit is a totally moot point. Heck, the Treasury Sect’y didn’t even pay his taxes and he got appointed. Charles Rangle didn’t claim a million bucks on his taxes and he’s gonna get re-elected as a US Congressman! DaDA, your credit score could be 200 and get hired by government and you know what?? That is the way it should be- even in the private sector.
gamama
October 28th, 2010
8:45 pm
FB:
The job posted for kinetex is all for $17.00 / hour …
they are searching for overseas labor!
They won’t find anyone in the US with those qualifications.
When my husband was laid off his high tech job…we found awful propaganda on how US companies are offshoring and getting away with it. Seminars are offered for HR to write help wanted ads to find US employees NOT qualified for the jobs they are looking for. These companies then get vindicated by the fact they can’t find qualified US workers and have to go off-shore to hire.
monic11024
November 1st, 2010
2:23 pm
to Bryan,
Do you actually think that a credit check is a need to know what kind of person you are by whats on your credit?? give me a break!! you know sometimes in life people get unexpected blows like loosing their jobs and cant find one right away because the economy is pretty bad right now and cant pay the bills and your credit is down the drain. Ive seen where people have the greatest jobs, perfect credit but get caught up doing illegal activity such as fraud, drugs etc, and end up with charges and doing time in jail, so now you tell me In what way does that tell you about them being responsible and about their character?