I ordered a credit report (just came in the mail) and was startled to read that a potential employer may access my credit record if I was applying for a job :eek:
Why would they even need that information? Could I actually get turned down for a job because of bad credit? is that even legal?
Certain employers --banks, for instance-- have a very vested interest in knowing just how desperate, or not, your credit situation is. If your credit is really bad and you could be in a position where you might be subjected to “influence” by a payment here or there, an employer might want to take a second look at you.
I recently had a friend with a credit score in the low 400s get held up on his application (and he was good as gold) due to his credit score. He had appllied at a bank. He had to write all sorts of explanations and have several people vouch for his character, and they hired him. But they did their due dilligence…
I could see it for any place requiring a security clearance and both Finance and IT jobs. I am sure there are other valid jobs.
Legality, I do not know, I suspect they might need you to sign a waiver.
Pharmacist, Casino dealers are two more jobs I just thought of were a credit check seems appropriate.
Jim
Yes, it is legal, although, at least in my state, you have to consent to it first.
The reason is because your credit history tells a lot about what kind of person you are- how reliable, and how likely to take off with their money because you have financial pressures.
More and more, it’s not just banks and the like doing this. AFAIK, it’s pretty widespread, especially if you handle money and/or nightly deposits.
When I worked for an insurance company I was bonded to $10,000,000. They not only ran my credit report, they sent an investigator out to interview my neighbors.
They just now discussed this very subject on my locals news, oddly enough. Yes, it’s being done more and more, and yes, it’s legal.
They cited as one reason for it the practice of former employers not commenting on a person’s performance. It’s a replacement for that kind of research into your character.
This is exactly what it is. Most job applications I have seen since I got out of the Marines have stated this (usually in the fine print or smack in the middle of a whole bunch of other stuff about criminal history, etc.).
The best way to put it is: If you can not handle your own personal life and finances, how can they trust you to handle their business and/or finances? However, I am sure that it will not hurt you terribly if your credit is not so good, if you are able to back it up with other things.
Here is a little something from moneycentral.msn.com :
And from tcbsolutions :
Heh. It scared my old apartment manager when a couple of feds showed up to ask questions about me. She thought I must have done something really bad to have the feds show up. (In reality, they were just investigating me for a security clearance.)
Even if you don’thave access to the company’s cash or bank accounts, if you learn any of their trade secrets or proprietary information (pretty common in both white-collar and manufacturing jobs), it makes sense that the company would want to know how likely you are to sell that stuff to competitors.
–Cliffy
I had to be credit checked for a job in which I took credit card payments by phone as about 5% of the job. It seems like if there is any money handling of any sort they’ll pull your report.
Right. Now that it’s “common knowledge” that anything negative you say about a former employee to an interviewer will get you and your company sued for slander (note: I don’t know if this is technically true or not, but it was “known” at the last four places I worked), most people will only tell you that yes, John Smith worked here from this date to that date. They don’t dare say that he only showed up for half his shifts and was skimming from the register until he and the night manager ran off to Reno without properly closing down the store.
Even putting aside your financial situation, employers want some idea of your character. Since no one will tell them anymore, they use what they can. Most people believe that having a bad credit score means you’re lazy or dishonest or don’t keep up with your commitments - not things and employer wants to see, even if you never come into contact with cash.
You, specifically, being a teacher, (Incubus, that is, not Alice the Goon) want to be careful with your credit score, because no one wants an “irresponsible” person at the head of their classroom.