Credit check required to get a job? Why?

Maybe it’s just been too long since I was hired for a new job so this is surprising me. I recently got offered a new job (good thing) but was shocked at the hoops they are making me jump through. They are requiring a drug test, a background check (criminal) and a credit check.

The drug test isn’t a new concept and while I am philosophically opposed to the idea I need the job and haven’t done drugs in 10 years so no problems. (IMHO drug tests are fine if you’re a bus driver or operating heavy machinery but I don’t see the point for an office job which is what I’m doing).

The background check I can see but frankly this is the first time I’ve ever had one done (except ages ago when I had to get bonded but that level of check says something about the job itself…usually handling money). I’ve never been arrested for anything worse than a speeding ticket so no issue here.

Credit check though? Where the hell did that come from. Maybe if I was handling money or an accountant or something I might see this but I’m a computer network guy and will be trained on some new document management system. What possible reason could an employer care about my credit history? My credit history isn’t bad but there is a ding or two on there (nothing awful). Why are my personal finances a concern of my future employer? They already can see I haven’t broken any crimes with the criminal background check and if I’m drug free as proven by there test however I may mismanage my money isn’t for drugs.

What gives?

The purpose of a credit check for employment is to help the potential employer judge your responsibility. People with very bad credit ratings and lots of debt are likely to be irresponsible with their finances, which means they might not be responsible employees. Additionally, they may be more likely to steal from the company if they have huge debts to pay.

It would of course be stupid to judge a candiate solely on his credit information, but combined with other factors, it is a good tool to help get a picture of the candidate’s overall quality.

The purpose is like all of these checks: employers don’t have a clue as to how to hire a good employee (hiring is very hit and miss), so they run all the tests they can because someone told them it was a good idea. I seriously doubt there is any study proving correlation between one’s credit history and how well they do in a job.

The only time I have come across a credit check in the hiring process was a job that gave all employees a company credit card.

YMMV of course.

A credit check could also indicate past cases of fraud on your part (ie credit card fraud etc.). If in fact you would be in a positon to be given a corporate credit card it would be in their best interest to make sure you are fiscally responsible.

RealityChuck Gets the cigar!

A credit check would not indicate fraud. Why you didn’t pay is not something they go into. Unless there is some kind of credit report I haven’t seen.

Anyone know the latest estimates on the inaccuracy of credit reports?

Always remember, Experian and the others are not in the business of keeping track of people’s credit history - they are in the business of selling information about people who are a credit risk.

“Good credit” is a misnomer - a good score really means you don’t have a bad score right this minute. It’s not like being a good speller who will, baring remarkable circumstances, be a good speller tomorrow, and tomorrow, and tomorrow.