Employers Want Background AND Credit Checks?!

Aug 8, 2016 | #EmployeeFromHell, Caption Contest Blog, Complete Employee Screening, Industry News, Uncategorized

employment credit check

It may come as surprising news to some, but many employers, in addition to using employee background checks, may also want a credit check on you. This might not seem like a big deal to some, but for those who do not have the best credit, this is definitely a bigger issue! Don’t worry though, because today we are going to break down why employers actually want credit reports and what they might actually do with them.

It is important to note that not every employer is going to pull a credit report. In fact, usually only businesses that are related to finance or profit gain/loss will use credit reports when making hiring decisions. And while some businesses not related to money may request a credit check, these checks are only referenced at the very end of the hiring process and are not a huge factor in whether or not you get hired.

For those who are applying to finance-related jobs, don’t worry as poor credit does not immediately disqualify you from a job or position. Employers are more understanding than you might think and won’t let a single blemish disqualify someone from a job. Tom Armour, the co-founder of HighReturnSelection.com, was quoted as saying that “[He] once observed a fellow who had gone bankrupt being hired for a key financial role. He was brilliant, and the company felt the bankruptcy was a life learning event.” Don’t sweat things as employers are forgiving and more than willing to overlook little mistakes.

However, this doesn’t give you free reign as an overwhelmingly negative credit report can still hurt your prospects. TyAnn Osborn, a director of human resources for the the Michael and Susan Dell Foundation feels that “One late payment to Columbia House Music back in 1988 doesn’t concern me; however, I did have a candidate with multiple foreclosures and a string of late payments. Over a period of time, it represented a series of poor decisions and lack of judgment. That did concern me, and ultimately we did not extend an offer.”

In the end, employers may want to use a credit check in their hiring process, but these are not always the deciding factor when making a hiring decision. For more on credit check fact versus fiction, check out a great article by clicking here! And for those who are interested in finding out more about the hiring process (pre-screening, employee background checks, etc.), tune into our blog every week for regular content!