Crazy Question6: Why do my employer needs my credit report?

In my line of work "credit is considered as a persons character" otherwise, if you don't pay your bills you may be unreliable. However, if you explain your credit issues and they are not typically, you may be looked at differently. However, if you never pay anyone and your credit is a mess since the beginning of time, you may be considered to have a bad character. I have not dared to apply for work since I started having credit issues.

I've never heard of an employer asking about somone's credit report..that doesn't make any sense to me. In my 'line of work' (I work with the elderly), 'my company does Criminal Background checks...but, not credit checks. ALOT of people are having credit problems. Companies/Employers should not base your work history on your CR.

Hi sdchargers

I do agree with you that one should be only judged only on his or her abilities at workplace....but sadly in recent times there are many cases where employers did check the reports of the employees for promotion and retention. Many prospective employers also look at the credit report of the job seekers to see whether thy have managed their finances well or not.

This is nonsense....but it has happened :(

I totally agree with Goodnelly.....after learning info on this site!.....
yet ....sooooo much emphasis here in my state is being put on the $8.00 minimum wage..lay-offs ....etc...new-hires are subjected to soooo much more investigation..yet my main search now is to see if person applying has had unemployment benefits run out and is looking for a place to "lay down"....we don't expect minimum wage to $12 an hour workers to have been able to have managed their finances in these trying times.(.especially if they are under 25 and know nothing about money management!)..I myself hired two people today from half-way houses where they have had addictions and are making positive attempts at getting their life back together....(they probably managed their 26 cents a day while they were in prison quite well...LOL!) but are very serious about making amends...I don't care if they have good credit..I personally don't care if they managed their finances well...I care if they are serious about a willingness to work and be dependable and be a good worker(but I won't give them any keys to warehouses yet!)....what has happened to America when the pre-hire involves credit screening?..My Goodness..most people looking for work have been out of work for awhile and their credit history is trashed totally! Does this mean they will not be able to find a decent job ever? sad if this is true...(j.m.o. but I am over 45 and know how life used to be in our country if only a person was willing to work hard and be a good person)

For my part, I will not consent to have my credit run for a job. I'm concerned about the security of my personal information, and I don't mind telling them so.

My day job had a big split in their corporate structure last year. As part of that, our operation, which comprised most of the outfit and generated 90% of the revenue, was spun off into an independent organization. We all had to do the corporate BS... Resign from our jobs, re-apply, get re-investigated, all like that. In the process of all that, I had to sign off on consent to be investigated... I specifically excluded credit or 'investigative consumer reporting' from the list of things they wanted to do and signed off on the rest. Management promptly hit the ceiling....

them. My credit or spending habits have no bearing whatsoever on my work ethic or professionalism. They said they'd fire me for non-compliance. I said that was fine by me.

I did tell them that if thay has a valid reason to look at my reports, I'd consent. But "It's our policy", "We want to", or "Because we can" are not valid reasons in my book. Company policy is no reason to trample on my right to privacy.

The practical upshot of all this? Well, almost fourteen months later, I'm still there, and still un-investigated. Still the senior man in my division, too.

Auntie Wulf is a little bent over the whole thing, though. She's been after me for years to quit that job and become a full time consultant. Oh, well. Can't please everybody, I guess.

I agree. With that said though, I do wonder if it is a good idea for people that are dealing with other people's money. After all if someone's own money history is a total disaster I may not feel comfortable having them in charge of my money. But it should not be all or nothing. Employers need to look at the whole picture. It should just be a part of it. I also wonder if this is teetering on discrimination.

Imho, the only valid reason for an employer to pull a credit report is if the job involves money in anyway--be it at a cash register or in some other fashion. If someone is having financial issues, I guess it might make them a greater risk for embezzlement, possibly. Otherwise, it's just one more invasion of privacy.
I also have lost a part-time job that I've had for several years--because I wouldn't consent to having my fingerprints run for the second time by the same employer. I told them they'd already done it and asked where the first set was. They denied it and I made them look for them, which they finally found, proving that I was right.
I think the real reason I was let go was because I stood up to them and didn't let them speak down to me like they were doing, but whatever.

I am not happy with the whole pulling credit report thing either! Especially with jobs that have absolutely nothing to do with finances or money handling or anything. Geese, half these companies especially in this economy are going through some tough financial times themselves!

Maybe applicants should be asking the questions to future employers like...so how many times did investors bail you out of trouble or how many times has this company filed for Bankruptcy protection? Hmmm?

Thanks for all great answers. Are financially stable employees better at work? In my opinion Yes.

I have to disagree with that one. Yes, a financially stable employee might have less to worry about, and thus be a little less distracted at work - but then again, maybe not. If an employee has to plan for every dollar they make (as it relates to their own credit and financial situation), they are unlikely to be an unproductive employee - they will make every second count, to ensure they keep their job in these uncertain times. Especially where I live - where if you have a job, you sure as heck aren't going to jeapordize it, or you won't find another.

I don't think someone's credit rating has any bearing on whether they are a "good" employee or not. Obviously, if they are one of those people who intentionally defrauds creditors and runs from state to state and job to job to avoid wage garnishments and trying to escape creditors chasing them down, then that's another story.

Lots of posts on this thread!!LOL Get THIS senario............I know someone who REFUSES to work, single and have no children. He's had ZILLION jobs ( it seems like..) in the past few years. However..........he has the BEST credit I have ever seen. Know why?..I'll TELL ya why!! ( Actually..really makes me mad!!) Cuz 'mommy and daddy' say they don't want to see their 'little boy' in financial trouble and think they should "help him out" when he gets a bill, etc. OMG!! How the hell is this person going to 'learn life' with people paying bills for him???? This person's parents have NOTHING saved up ( IRA,etc) because they send HIM all of the money!! This 'man' is in his 30's.....I've known him a long time. I don't think he will EVER grow up!! He just FREAKS when it comes to financial matters..just doesn't know what to do. When he calls me, know what I tell him?! "Get a job and pay your OWN bills." There has been times where his parents were
strapped' (financially) and he asked me to "help him out." NOPE..no way!! Told him to get a job and pay his 'OWN WAY"..like every other person on this planet!!

Just one more reason why a credit report is not an reflection on the person. Your friend has great credit but does he/she really have a great work ethic. Probably not.

Suebee I completely agree with you.

Thanks, spatterson!

sdchargers...that scenario is so eerily similar to that of my sister's ex-husband that it's scary - but add into the mix that he's remarried, has 5 kids and probably will have more before it's all said and done, fakes mental illness so he can get social security and welfare, and before all the security checks came into place, he had several gold and platinum credit cards that he obtained by lying on the applications. Who taught him to do this? HIS MOTHER!

Again, another case of the credit report not reflecting the work ethic of the individual. He's a disgusting, dishonest person, and yet was able to walk around with the best credit cards and credit report...until they caught on to the scam and that he wasn't going to pay.

How can a piece of paper determine your working capabilities? I have known a couple going thru financial troubles due to medical treatment. They spent almost every penny on the treatment.......its kinda sad situation.....after all u are not spending on anything rotten!!!! u are spending on your health....bcoz u want to live!!!! its not always the case of bad spending habits....sometimes things happen n u simply cant stop them from happening to u.