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Likely nobody is responding because you are not asking a question that is really what we are talking about. in your situation, you are right, why hire someone with a low score. However, it's not about a situation where there are two or more equal candidates, its about situations where I am the best candidate AND have a low credit score.
You do understand, don't you, that the employer may well have determined that you aren't the best candidate, in part because of your credit score.
You do understand, don't you, that the employer may well have determined that you aren't the best candidate, in part because of your credit score.
I understand it just as surely as I understand a need for a question mark at the end of your sentence.
But that wouldn't be the situation I'm talking about. As I said, the situation I'm talking about is one where I am the best candidate and I am not hired because of my credit score. I'm not sure how much clearer I can write that.
I understand it just as surely as I understand a need for a question mark at the end of your sentence.
Oh no! A typo! I guess you win. 100 internets to you.
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But that wouldn't be the situation I'm talking about. As I said, the situation I'm talking about is one where I am the best candidate and I am not hired because of my credit score. I'm not sure how much clearer I can write that.
Maybe you're not getting it. The bad credit score means that you aren't the best candidate. A better candidate than you is hired.
Here's the problem with using a credit score to judge employees:
Junior Von Prepschool, III and Blue Collar Brian apply to the same job. They both have good grades, and they've both done internships in their field.
Blue Collar Brian works his ***** off at his job because he has had to work his ***** off all his life, and he doesn't know any other way. His references recommended him because he works his ***** off. He has student loans to pay off, despite the fact that he earned scholarships and worked all through college. His parents are barely scraping by themselves (their circumstances are the reason Brian has worked so hard to carve out a better future for himself), so he can't turn to them to chip in if his clunker breaks down, or for rent, groceries, or a gas bill if he falls short one month. Even with a full-time job plus picking up a few shifts bartending when his main job allows, he can't always make ends meet, and sometimes he has to pay a bill late because when you're barely getting by, food and shelter come first, then utilities and transportation, then paying down debt. Speaking of debt, his student loan balance throws his debt-to-income ratio significantly out of whack.
Junior Von Prepschool, III is an OK worker. His references recommended him because they owe his daddy a favor, and hey, he never set anything on fire during that two weeks he helped them out in 1998. He does just enough to not get hassled, and he plays candy crush all day, because who cares if he gets fired? Daddy's country club buddy always has room in his department for a family friend. Junior doesn't have student loan payments. He spends his income on box seats, bottle service, and blackjack tables. If he overspends at the club one night and needs a few extra bucks for his car insurance, salvation is just a phone call away, because mommy and daddy, who have been absent from his life, use money to assuage their guilt. Junior has a near perfect credit score.
This, ladies and gentlemen, is America. Often, people with privileged backgrounds don't have to work to earn a spot in the starting lineup, they just have to take their position on the field and try not f*** up too much, while those less fortunate have to fight kicking and screaming just to make it to the tryouts.
As callous as it sounds, "Blue Collar Brian" needs to get his finances together, period. Live in a low rent apt, eat ramen, WHATEVER IT TAKES. The fact that he is in over his head is solely due to his choices.
I don't know of anyone like "BCB" who doesn't have the same "times are hard" story.
"Junior Von Prepschool" can take any job opportunity like anyone else. The post implies that "JVP" is a spoiled slacker. So be it. If an employer wants to accomodate a spoiled slacker as a "buddy favor" it's their perogative to do so.
The one thing I can say is that if "BCB" doesn't stop whining about "hard times" and do what it takes to get traction, it's not gonna improve.
Bad credit is very often a result of a bad financial situation, not just the result of irresponsibility. Things happen to people beyond their control that wreck their finances and credit all the time. And especially with young people, they may be responsible in other avenues of life, but may not know how to properly handle their finances if something like a job loss occurs. My best friend, a very responsible and hard working individual, had his credit trashed when he was 20 due to a job loss and not being able to find a job for a while, and eventually losing both permanent housing and a car.
My sister had her credit trashed due to a messy divorce.
Life happens, and credit is often not a good indicator of financial responsibility, or any responsibility at all. But sometimes it is.
I think in general, people with better credit are more likely to be responsible people, but there are millions of people with bad credit who just went through bad situations.
Also keep in mind that there are many responsible individuals who have very little on their credit because they never take out loans for anything, not even using credit cards. People like this can have their credit trashed if they get even one little nick on it, because the only credit history they would have would be bad credit history.
If you can't pay your bills, you can't come to work on time and do your job. Yes, like it or not people, prior behavior is a good prediction of future behavior. Can't pay your bills, you are a risk to your employer. PERIOD.
How? It is actually logical to assume that a person with a poor credit score and financial problems would be MORE reliable because they are MORE dependent on their job as a source of income than people who have more money. Consider Walmart employees.
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Originally Posted by Hemlock140
Credit worthiness is an indicator of risk for you car insurance, and is used for that now.
That's a really interesting point you brought up. I actually asked my car insurance guy why they run credit checks when giving us a quote. "Why on earth would credit score affect the way a person drives a car?" I asked. He could not give me an answer.
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Originally Posted by griffon652
Companies can check your credit because THEY ARE LEGALLY ALLOWED. The US is a free country so companies can set their guidelines regarding how they choose an employee as long as it is not a protected category. That's good enough reasons to do it.
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Originally Posted by Phil306
Sorry Scooby but there is a good reason to run a credit check as a basis for hiring someone. First its not illegal nor is it immoral. (in terms of universal morals everyone agrees on. i.e. raping murdering stealing etc.) That's good enough reasons under most circumstances.
Actually it isn't. Legality does not equal morality necessarily. Just because something is legal is not a sufficient reason to compel compliance from someone. People applying for jobs are more likely to agree to do things they otherwise wouldn't out of desperation.
You do understand, don't you, that the employer may well have determined that you aren't the best candidate, in part because of your credit score.
Then why are there qualifications for skills in a job description. Why not just put the only qualification as: credit score 750 and above. That would most definitely find employers the cream of the crop employees. Python Programming, C++, three years of SPSS, SAS. Throw that out the window. Who needs that? The only qualification should be credit scores of 750 and above. Then the employer would definitely determine the best candidate.
If you are working in a bank or financial services company or applying as an accountant, finance, CFO or CEO, then it matters. Otherwise I do not think ANY KIND of credit report (even the double checks to see where you worked) is relevant to the job you are applying for.
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Originally Posted by Phil306
If you can't pay your bills, you can't come to work on time and do your job. Yes, like it or not people, prior behavior is a good prediction of future behavior. Can't pay your bills, you are a risk to your employer. PERIOD.
That is possible but I can only see that if it is a case of say being able to go to work (due to gasoline) vs. saying having your rent paid for. It is an extreme case that I wouldn't really consider in that.
Location: Huntersville/Charlotte, NC and Washington, DC
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Originally Posted by griffon652
All those that are against credit checks have now ignored my question 3 times. I suspect it’s because the answer makes almost every argument against credit checks irrelevant. If you can't answer this question then all your other points are moot.
1. Why should a company hire someone with bad credit if they have another well qualified applicant with good credit? WHY? What possible ADVANTAGE can that bring to a company? We live in the USA where companies are free to hire however they like (minus federally protected catagories). So again why should they hire someone with bad credit with PLENTY of other applicants? Especially in this economy?
What if the applicant with the bad credit score has far more experience and better quality recommendations than ANY of the other candidates but since credit histories go back 7 years, has tarnished credit because he lost his job and got sick 5 years ago and had to declare bankruptcy due to skyrocketing medical bills he had no chance in hell to pay off, but has been a model employee since recovering and had paid every last bill on time for the last three years?
In that scenario, you are going to yourself out of a great employee because credit should be the determining factor not credentials. And you'l be letting him walk to a competitor who feels that his experience speaks louder than his damn credit score.
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yourself out of a great employee because credit should be the determining factor not credentials. And you'l be letting him walk to a competitor who feels that his experience speaks louder than his damn credit score.
