Credit Check for Employment Purposes

I applied for a temporary job at my local dollar store and they had me give them permission to do a credit check for employment purposes.

Why ?


Couple reasons I can think of offhand:

1 - A person who has bad credit might be more inclined to steal, due to their poor personal finance management.

2 - A bad credit rating may put the company in the position of dealing with garnished wages. Wage garnishment makes more work for the payroll department and is a small expense for the company. In a large enough organization, the expense of numerous employees whose wages are being garnished can add up. My dad, who was a state employee, said that the state won’t hire a person with bad credit.

The reasons vary from employer to employer.

Your credit report will have information on credit cards, loans, collections (if any), liens, bankruptcies, etc. It will also have a list of previous addresses and any aliases (nicknames, etc.) they know of.

As a guess, I’d say that a retailer would want to do a credit check to determine how responsible you are with money, because you may end up handling a great deal of theirs.

Well, if you are handling money, that point was already made. Having people who are being hunted by collection agencies or who have financial woes doesn’t make management sleep better.

It’s also a permissable purpose as outlined in the Federal Fair Credit Reporting Act. References to bankruptcy must be ignored. Personal info such as date of birth is masked so as to prevent age discrimination.