What does credit have to do with getting a job?

My friend interviewed 2 times for a new job--got the money offer, met the staff, etc...

They said they had to run a credit check...

She just texted me she did not get it b/c of her credit....

I have never ever heard of such a thing!

Is this normal?

Re: What does credit have to do with getting a job?

Im not sure of the reason why but at my old jobs we always did background and credit checks. There were a few people that didn't receive offers because of what was found in the reports.

Re: What does credit have to do with getting a job?

I have heard of background checks, but never credit checks!

Re: What does credit have to do with getting a job?

Depends what the job is. Some companies view bad credit as a reason that someone might try to defraud or embezzle from the company, which is why they run the credit check.

Re: What does credit have to do with getting a job?

Re: What does credit have to do with getting a job?

We run credit reports and lots of people unfortunatly get turned down.

It s*cks...but I think it's important for financial institutions to do.

It's not always fair, because you can't always judge a person by their credit report. How is someone going to get a job to pay their debts if all companies start running credit reports and turning people down for the job?

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Re: What does credit have to do with getting a job?

Holy crap - I'd be unemployed for the rest of my life!!!

Re: What does credit have to do with getting a job?

Depends on the field. If it's financial & you're dealing with other people's finances (banking, etc), I could see it.

I work for a software company. We have to do background checks for most government agencies & banking institutions.

Re: What does credit have to do with getting a job?

I'm in HR and we do background checks including credit. It's important esp. for financial positions BUT also to see if the person has a good sense of judgement and responsibility. Then we go on the facts - for ex. someone we did it on recently went bankrupt a few years ago. After speaking with him, we found out he went through a divorce and we offered him the job. It depends.

Re: What does credit have to do with getting a job?

Yeah.. but there are so many reasons for bad credit. Illness, Divorce...
For me.. I am one of six and my parents really couldn't support me through undergrad the subsquent full time grad school. Same for DH. He also moved to NY right after 9-11 and it was tough times then to get a good job.

It doesn't mean you are irresponsible and can't preform well at that company.
I guess I could see it if you are like a financial advisor.. but really other jobs. I would be insulted at the request.

Re: What does credit have to do with getting a job?

yup - I have had that happen too.

I guess they want to ensure that the person they're hiring isn't a "dead beat"

Re: What does credit have to do with getting a job?

With my job, you get a corporate Amex card. I guess they need to see if you would be responsible with having an expense account.

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Unless I would be working in a financial institution with a DIRECT role with financial transactions/handling, I would REFUSE for someone to check my credit.

That's really a total invasion of privacy.

In addition, each time an employer or anyone inquires about your credit, it goes against your score. Imagine if you interview with more than 10 employers. Your credit score would look even worst.

AND I have good credit.

Re: What does credit have to do with getting a job?

Hmmm...

Well it was the home office who called her &she has to call the hiring person tomorrow at the local office.

And her situation--she is a single mom of 3 children---her husband cheated on her when she was pregnant with her 3rd child & married the homewrecker. It took her close to 5 years to even get child support...so yeah, maybe her credit got screwed up in the meantime...


but she should not have to get THAT personal to get a freekin job.

And her position is an assistant. There is no money involved whatsoever.

just sucks.

Re: What does credit have to do with getting a job?

I have heard of it with respect to financial services jobs.

Re: What does credit have to do with getting a job?

Any time you deal with any intellectual property, your credit comes into play. It's not just if you deal with money. If you work for Microsoft, and I know that, and know that you are having financial problems, I could use that to get insider information from you. I could help you with some loans, or give you some sort of financial assistance, and since I'm so nice, I would just start asking about what you do, what you know, what you would be willing to give me, etc. Or, I could skip the subtleties and just say "Hey, I'll give you $50k if you give me details/plans/schematics/etc about Product XYZ that your company is making." Almost any company could be put into jeopardy if someone was giving out company secrets.

Message edited 5/9/2008 7:24:25 AM.

Re: What does credit have to do with getting a job?

I had to have a credit check done because I work in finance. Companies want to know how you handle your own money before they let you handle theirs.

Re: What does credit have to do with getting a job?

They had to run an extensive credit and background check on DH when he was being given his security clearance..not only that, they had to run MY credit as well! It was crazy. And mine was not as great as his but they want to check for bankrupty, judgments etc...many companies do it these days...I understand it in certain situations but not all..

Re: What does credit have to do with getting a job?

Re: What does credit have to do with getting a job?

While I didn't know that employers ran credit checks now, this:

Re: What does credit have to do with getting a job?

Re: What does credit have to do with getting a job?

Wow I hope my next job doesnt check my credit score....my student loans KILLED it!

Re: What does credit have to do with getting a job?

Your credit shows responsibility to a degree, although credit checks now have been proven to be poor predictors of theft or other criminal activities. Unless there is an exceptional situation, bad credit can end up in delinquencies, bankruptcies, judgments, liens but if you have an explanation, you should by all means offer it, and many times a company will work with you (security clearances on the other hand will not.) An employer is generally permitted to do a check, primarily because there is no Federal discrimination law that specifically prohibits employment discrimination on the basis of a bad credit report.

Message edited 5/9/2008 9:21:41 AM.

Re: What does credit have to do with getting a job?