Should corporations be allowed to look at job applicants' credit reports? (interview, drug)

[tvdxer]

Many companies in the U.S. today (and seemingly only in the U.S.) use credit reports as part of their background checks. Many hiring executives think they will get better employees by screening them for their credit, yet this is inaccurate for some people - for example, one who had an unforeseen medical problem and incurred tens of thousands of dollars in hospital debt, or a person whose now-resolved drug addiction caused them to never pay their bills.

Should companies be permitted to use these in screening applicants?

[yellowsnow]

I've always thought this is wrong. Like you said, medical bills, death in the family, there are financial events in life you can't control.

I understand why employers do this to screen prospective employees who will handle a lot of money. But other than that, it's not necessary.

[mhouse2001]

No. It used to be that we gauged people when we were in their presence. We used gut instinct and relied on word of mouth to help gain another's trust. Now, employers ask people to pee in a cup, scour their Facebook page, test their mental state, and do background checks. All that has done is create an even more distrustful environment. Checking credit scores is wrong since they are hardly a measure of an individual.

[EinsteinsGhost]

Criminal checks? Yes. Credit checks? No. IMO, the ideal society wouldn't depend on credit at all.

[Cavaturaccioli]

Try getting a security clearance with out it.

[AuDiBelle]

As an employer, I would want to use credit reports as a screening tool. If you have mitigating circumstances that have negatively affected your credit, you are free to attach a statement of explanation to your credit report. Problem solved.

[EddieB.Good]

Not unless it's relevant to their job. I'd want to look at the credit score of someone I was interviewing to be a financial planner or accountant.

[AuDiBelle]

Insurance companies also use your credit report to aid in determining your insurance rates. Those with poor credit pay more for insurance.

[alphamale]

Yes.

[no1brownsfan]

Absolutely not!