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Thread: Credit checks

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    Credit checks

    Credit checks are conducted to price a number or products and are a screening device used by some employers.

    Some states are considerering legislation that would make it illegal to use credit checks as a screening device by employers.

    Should government limit the use of credit checks?


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    Re: Credit checks

    This is a touchy subject. I can see how they could be used as a guage for responsibility, but that the same time, should one be punished from previous mistakes that they may have learned from, especially if they are trying to repay debt, but can't since they can't find a job?



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    Re: Credit checks

    Quote Originally Posted by alaskaguy View Post
    Credit checks are conducted to price a number or products and are a screening device used by some employers.

    Some states are considerering legislation that would make it illegal to use credit checks as a screening device by employers.

    Should government limit the use of credit checks?
    Simply put: no. If I am an employeer, I want to know how the guy/girl I am hiring handles money. Does he spend every dollar he/she has and is in debt up to his/her eyeballs? If so, I probably don't want him being my project manager or financial advisor. To me a credit score just shows me how responsible someone is when it comes to borrowing money.

    Only people that would have a problem with this are those with bad credit. My employer can look at my credit all they want, it just puts me higher on the list versus people with bad credit.


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    Re: Credit checks

    The federal government requires credit checks for quite a number of their openings and requires that applicants provide a financial disclosure. If states passed these types of laws, then the federal government would have to change their hiring practices.


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    Re: Credit checks

    Credit scores arent a total picture though. You dont know *why* this happened. Hell, with some of the things that can hurt your credit score, including inquiries and even closing accounts, its not really a fair assessment as to your ability to do your job well.

    Also, with more and more students coming out of school with massive piles of debt and not much else to show for their credit, i think this would have disparate impact on younger prospective employees.



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    Re: Credit checks

    Should a credit check be used for everything that it is currently? No. Should executives/project managers/financial advisors etc. have good credit and be denied the job if they don't? Yes. But I also don't want the government "fixing the problem".



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    Re: Credit checks

    Sounds reasonable that if any entity other than yourself can't affect your credit score, they shouldn't be checking it. I understand that it's somewhat important to employers to know how fiscally responsible their prospects are, but I would have thought they had interviews and reference checks for this reason.

    If employers had a limited ability to affect credit ratings, then it might be okay. But seeing as they lack the power to do so... maybe it's not such a good idea.


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    Re: Credit checks

    Quote Originally Posted by alarson View Post
    Credit scores arent a total picture though. You dont know *why* this happened. Hell, with some of the things that can hurt your credit score, including inquiries and even closing accounts, its not really a fair assessment as to your ability to do your job well.

    Also, with more and more students coming out of school with massive piles of debt and not much else to show for their credit, i think this would have disparate impact on younger prospective employees.
    You don't think they look at anything but their credit score? I'm sure they are looking into it. If I was in a position to hire somebody I would definitely look at it if I had the chance no matter the position I was hiring for. If somebody has a bunch of debt, is making late payments, etc. and they are coming from another job it tells me they can't live within their means, and that has the ability to definitely impact their work.




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