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Why does credit score matter in regards to employment? So bad credit means you cant get job to pay your bills to increase your credit score which makes your credit worse....see the cycle?
Why does credit score matter in regards to employment? So bad credit means you cant get job to pay your bills to increase your credit score which makes your credit worse....see the cycle?
To answer the title of the thread - it depends. A few states have enacted legislation that have banned or limited the use of credit reports. A quick search turned up this article: ESR Articles
That said - as for the "why" does it or "should" it matter.... well, that can be debated till the end of time.
My friend used to work at a university, and had to hire someone. He offered the job to this one guy he really liked and felt was the best applicant. Of course, it was all based on condition that the guy passed the background check. It turned out the guy had bad credit, and the university refused to allow the applicant to continue. My friend pleaded with the university to still be allowed to hire the guy, even with the guy's bad credit history, but to no avail, the university refused to budge. It had to do with that the position involved dealing with money, and with someone who had bad credit, the university didn't trust anyone with bad credit to deal with money. The university told my friend that if the position did not involve dealing with money then he would've been able to hire the guy, no matter what his credit was like. So, yeah, it can be rescinded.
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Originally Posted by Mr.2089
Why does credit score matter in regards to employment? So bad credit means you cant get job to pay your bills to increase your credit score which makes your credit worse....see the cycle?
You are right, however that's not the employer's problem. Credit checks as part of a background check are very common now even if the position does not involve handling money. It's just one more tool used in an employer's market to find not only the best qualified but to limit risk, because they can with so many other applicants available to choose from. Just as many will not consider people that have been out of work for a long time, or will require a degree for jobs that clearly don't need it to perform the duties. Credit record/score has become a lot more important now since insurance companies also use it to set rates or deny insurance. Hopefully people will start to realize this and start to save or increase their savings to be able to get through a rough period. Some states are making a credit check for hiring illegal,
but whether all 50 ever due is doubtful, and the insurance lobby is too powerful to keep them from using credit as a key actuarial factor.
There are untold number of reasons why, but the one that matters most is that the employers can make it a factor because they want to. They don't need a reason. And honestly, at the base of the issue if you have otherwise equal candidates, but one with a 620 score and one with an 800 score, which one would you choose? Most people would choose the 800 candidate because statistically they were the more responsible person. Sure bad things happen to good people and there are those outliers of medical bankruptcy and other no-fault events. So yes a few good candidates might get cut, but more often than not the good ones would be hired.
As to your question, if you have a written job offer (the only kind that matters), and it has any conditional requirements such as credit check, criminal background or drug screen, and you don't meet the requirement, then yes it can be rescinded. ON the other hand if you have a written job offer and there are no conditions about credit, then no they cant rescind it. But, they can move forward with their offer to meet their legal obligation, then proceed to fire you the next day if you are in an at-will state. They need no reason to fire you.
If credit is an issue for you I suggest you have a story ready that explains what happened, regardless of the truth. For example you got injured in an accident and couldn't pay your bills. For the most part it cant be verified and if presented properly will probably diffuse any concerns. This is a case where I say you have to lie to get the job, and I know many people won't agree but that's their problem. If you need a job and this is all that stands in your way, do what yopu have to do to survive and feed your family.
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