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I wouldn't use a credit score to hire anyone. I would use the credit report itself, during the interview, and ask the person questions about its content.
Credit scoring algorithms are secret, and I suspect part of the reason for that secrecy is so the credit scoring companies won't have to disclose bugs in the software, nor be in a hurry to fix any bugs. In some cases, parts of their software might be so old that they no longer have employees with knowledge of how to fix bugs in it. By keeping it secret, they can pretend it's practically magic, and that nobody who questions it has any credibility about it.
The credit report itself, however, can be very valuable in an interview, to notice how the person responds to stress-inducing accusations. Finding out how a prospective employee behaves under stress is the biggest part of what the employer gets from the job interview. So a credit report is not just for financial jobs. It's to put the prospect in the hot seat, and turn up the heat.
But the issue lies here, you may be accepting if I say that I helped my mother pay for cancer treatments or my child had leukemia. The next person may not. The next person may be less forgiving. It's all about what are the motivations of all the hiring managers and human resources people requiring such conditions.
The difference is that your credit score exists to be queried, which is not the case for your medical records. It exists for no other purpose than to prove to other people that you can or cannot be trusted with money or information.
And for the record, some employers do require polygraphs and the disclosure of pertinent health records. It's all about what is necessary for the job, and a credit check is relevant no matter what the position.
How funny! Employers checking your credit history,for fraud,and some times it turn out that they are the ones who is robbing you of your wages,and who knows they might be the one to empty your bank accout,it might sound funny ,but believe me it can happen.
What if I published a study that showed you can statistically predict a good or bad hire based on genetic ancestry. Do you think it would be right for businesses to start requiring DNA background checks of everyone?
What if every business decided that female applicants had to perform sex acts during their interview? That should be legal, according to you. After all, businesses should be able to set the rules on who they hire. If females don't want to perform sex acts, that's their choice to not be employed. They can start their own business.
OK, I'm a little late to this convo, but back to the original question..
Why did employers start using credit checks as a way to screen applicants? It was because the government introduced regulations to massively restrict the use of criminal background checks for employment. As a (admittedly flawed) proxy, employers started using credit checks instead. Now government is moving to restrict those, so employers will now turn to a different proxy. What that may end up being I don't know.
I read a survey that people who have good dental hygiene are usually the most productive employees...Just Kidding...but if they did put out a survey like that..HR and hiring managers would be right on it because none of them have an original thought in their head. That is why businesses are failing to produce more jobs at the rate they should and they are keeping the economy in a slump.
How funny! Employers checking your credit history,for fraud,and some times it turn out that they are the ones who is robbing you of your wages,and who knows they might be the one to empty your bank accout,it might sound funny ,but believe me it can happen.
I see them seeing that you had health based debt and not hiring you because you are a risk for healthcare costs and lost time more than stealing from you like that.
What do credit check has to do with any one applying for a job?
It doesn't but a lot of robots who know nothing thinks they do.
Your stupid credit score does not define who you are and in my opinion is not indicative of success or failure.
Did you know Colonel Sanders of KFC was broke? Harland David Sanders, who died in 1980 at the age of 90, is the famous Colonel Sanders, founder of Kentucky Fried Chicken.
He had a small motel and restaurant in Corbin, Kentucky until I-75 was built and bypassed his cafe location, forcing him to close in 1955 when Harlan Sanders was 65 years old.
For the next several years he faced bankruptcy while living out of his car, penniless, and driving from town to town selling his chicken recipe for commission on each bird sold.
But this great man never gave up.
Imagine, 65, nearly bankrupt with your only income a small social security check. Most people would give up but this great American never did.
Here is something to consider, there are people that do not want credit cards, they want to pay cash, they do not want debt. I am one of them. I have 2 full size trucks, a car, a motorcycle all paid for, the only thing I owe money on is a house, yet if you run a credit check, it shows a low score, why ? because I have no debt and no credit.
Here is something to consider, there are people that do not want credit cards, they want to pay cash, they do not want debt. I am one of them. I have 2 full size trucks, a car, a motorcycle all paid for, the only thing I owe money on is a house, yet if you run a credit check, it shows a low score, why ? because I have no debt and no credit.
Using credit cards does not mean that one has debt.
Employers aren't looking at scores. They are looking at signs of poor judgment. These include nonpayment, bankruptcies, reckless borrowing, etc.
yet if you run a credit check, it shows a low score, why ? because I have no debt and no credit.
Employers do not run your credit Score, they run a Consumer Credit Report. This report list any judgments, defaults, bankruptcy, late payments, etc....
We do not use your score because it means nothing. Most employers could care less whats on your credit report unless it shows a negative item. If I pulled your report and there is nothing on the summary indicating any negative information, that's as far as we go. We only look at the details if there is a negative, and quite often its just to see if that was disclosed during the background questionnaire. If you already told me you had a bankruptcy and I'm hiring you anyway, what do I care if it shows on the report, I already knew that. But if you conceal facts and the credit report exposes them, that directly relates to your integrity and I'm going to rescind any offer unless you have a acceptable explanation. You have absolutely nothing to fear by not having credit to report.
And I want to add, this is a clear example of the myths people spread about employers use of Consumer Credit Reports. Scores are not used as they are only a snapshot at the specific time we asked for the score, that shows and indicated nothing. However, there are people who continually spread rumors of using "Scores" as a form of fear mongering.
That's a silly argument. If you can't control your own expenses, how do you expect a company trust you to handle theirs?
Have you ever seen a mechanics car, or a postman going for a walk on his day off? Your analogy doesn't work. How many dr's used to smoke even though they knew it would kill them? You can't judge a book by its cover. There are many things in life that can happen that will cause a person to have bad credit. Deaths, Illness, bad economy, divorce, identity theft, just to name a few. I have a great credit score, but
I have also had a few instances in life where I was in fear of losing it. Life is full of curve-balls, after all.
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Credit check
