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Employers : Do you run Credit Checks / Background Checks


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Old 15th December 2009, 1:04 PM   #31
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I think something like 45 percent of employers do some sort of credit check. For some it's just a formality - something they do to make themselves feel better for having screened an employee. Other employers simply will not hire someone without good credit.

Personally, I don't think that credit scores mean all that much in terms of the ability of someone to do a job. For one thing, there are limits to what credit scores reveal: they don't reveal the fact that someone can be consistently late paying their utilities bills. They don't even report late credit card payments until after 30 days. Someone could still have bad habits and yet have good credit. On the reverse side, someone could do all of the right things and end up in bankruptcy court because of one stretch of bad luck. I think credit reports are probably no more than 50 - 65 percent valid. Past employers, references, and evaluations on the other hand...that's what would interest me the most.
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Old 15th December 2009, 1:09 PM   #32
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I don't think it is fair to base a job on credit history.

My husband has bad bad credit. actually worse than bad credit the has no credit.

He hates credit cards never had one, always bought older cars in cash, no student loans. He saved for everything he wanted.

so when we went to buy a house he couldn't because he had no credit. even though he had the entire cost of the house in investments.

The bank basically forced him to get a credit card so we could get a loan.

Acutually I have big issues with how the credit agency make you establish credit. Basically in America you are forced to carry debt to establish any kind of credit.

Credit card policies are really deteremental to the consumer.
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Old 15th December 2009, 1:23 PM   #33
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Personally, I don't think that credit scores mean all that much in terms of the ability of someone to do a job.
Having read the commercial lender reports of some of our local judges, I might agree
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Old 15th December 2009, 1:27 PM   #34
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Originally Posted by amerikajin View Post
I think something like 45 percent of employers do some sort of credit check. For some it's just a formality - something they do to make themselves feel better for having screened an employee. Other employers simply will not hire someone without good credit.

Personally, I don't think that credit scores mean all that much in terms of the ability of someone to do a job. For one thing, there are limits to what credit scores reveal: they don't reveal the fact that someone can be consistently late paying their utilities bills. They don't even report late credit card payments until after 30 days. Someone could still have bad habits and yet have good credit. On the reverse side, someone could do all of the right things and end up in bankruptcy court because of one stretch of bad luck. I think credit reports are probably no more than 50 - 65 percent valid. Past employers, references, and evaluations on the other hand...that's what would interest me the most.
I agree. I don't know how running a credit check would really matter. Actually I would think being hired would HELP someone's credit score, as it would give them an income to pay their bills!

I actually didn't even know companies did that. I don't know how it is relevant...
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Old 15th December 2009, 1:34 PM   #35
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I was on the receiving end. I remember getting poked, prodded, credit checks (I saw their inquiry), drug tested, character check, phone check, random people in my past check, school records check, transcripts (official and unofficial) checks, criminal background check (local and regional)
All that just to get a job!

I do know those with an bankruptcy may or may not get hired depending on their reasons. If they are young and tried to start a venture only for the venture to go bust, they might get a second chance. If the bankruptcy was due to fiscal indiscretions or living beyond one's means, that is a different story.
Gosh ! May I ask what kind of JOB this was : Secretary of the Treasury ?
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Old 15th December 2009, 1:43 PM   #36
 
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Gosh ! May I ask what kind of JOB this was : Secretary of the Treasury ?
If I tell you then, I'll have to have my way with you then kill you.
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Old 15th December 2009, 1:43 PM   #37
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I agree. I don't know how running a credit check would really matter. Actually I would think being hired would HELP someone's credit score, as it would give them an income to pay their bills!

I actually didn't even know companies did that. I don't know how it is relevant...
We have done it.. it is relevant in our company depending on the job.

Accounts receivable handles checks and credit card transactions as well as cash for petty cash and other purchasing accounts.

If a person has had a recent bankruptcy and can't handle their own finance then why on earth would a company put them in hands reach of being in charge of theirs ?

We fired a book keeper accounting manager a few years ago for stealing the cash money in the coke machine and petty cash as well as purchasing items at Sams for her home.
She was having a fairly hard time at home with money.. her husband had lost her job.
We could no longer trust her to handle our money and checks..

the list goes on...

this is why we do credit record checks on some personnel and we do background checks on all new hires..
We also have them take extensive personality profiles so we know what we are getting..

for the record.. all my employees are long term today.. more than 15 years of service and many over 20 years and a few over 30 years here...
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Old 15th December 2009, 1:45 PM   #38
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If I tell you then, I'll have to have my way with you then kill you.
OKay if you promise to have your way with me first and then kill me
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Old 15th December 2009, 1:50 PM   #39
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Originally Posted by amerikajin View Post
I think something like 45 percent of employers do some sort of credit check. For some it's just a formality - something they do to make themselves feel better for having screened an employee. Other employers simply will not hire someone without good credit.
Quote:
Originally Posted by amerikajin View Post
Personally, I don't think that credit scores mean all that much in terms of the ability of someone to do a job. For one thing, there are limits to what credit scores reveal: they don't reveal the fact that someone can be consistently late paying their utilities bills. They don't even report late credit card payments until after 30 days. Someone could still have bad habits and yet have good credit. On the reverse side, someone could do all of the right things and end up in bankruptcy court because of one stretch of bad luck. I think credit reports are probably no more than 50 - 65 percent valid. Past employers, references, and evaluations on the other hand...that's what would interest me the most.
The random~ness of that...is what is scarey. That means all people that went their entire lives with great credit will be in a sense punished for everything that may have happened to them with the economy went in the toilet in the last 2 years . This ratio above seems to cover just about everyone whether it be a formality or if this person is in a particular sensitive position...
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Old 15th December 2009, 7:32 PM   #40
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I'm horrified that a company would run a credit check on an employer!
I've never heard of it. A criminal check for sure- but a credit check??? What is the reasoning behind that? Credit seems very, very personal.

When I lost my business, I fell behind on my bills and car lease - they wouldn't know anything about my business and the bankruptcy because it was incorporated- but a credit check would show I was negligent with my utilities and car and visa for 6 months while I struggled.

A credit check doesn't put anything in context for an employer. I don't see what business they would have checking such a thing. It doesn't even seem legal to check!

I don't know- I'm in Canada, but I've never heard of a credit check. Criminal offense makes a lot of sense- not the credit.
The rationale is that people with money problems are more likely to steal be bribed etc. It is especially relevant with people who have a security clearance.
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Old 15th December 2009, 7:35 PM   #41
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I am curious, can you give me an example of the sort of company that is going to go that deep and spend that much, to track down former landlords, roomates etc ???
Defense contractors and military mostly.
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Old 15th December 2009, 7:35 PM   #42
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The rationale is that people with money problems are more likely to steal be bribed etc. It is especially relevant with people who have a security clearance.
Well I could definately see if someone were driving around in an Armored Car and the company wanted to make sure they did not hijack one previously.....
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Old 15th December 2009, 7:50 PM   #43
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@OP

When I was hired for my current job, I had to go through six interviews.

I had a credit check, criminal check, background check, reference check and drug test.

They called everyone on my reference list.

For the record, in order to pull your report you must ask for written permission. I had to sign a form acknowledging that the employer was going to pull my credit.

I don't have a fancy job. I am a insurance/investment agent.
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Old 15th December 2009, 8:06 PM   #44
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Credit checks are relatively cheap, as are superficial (not 'deep') criminal and background checks. IIRC, we paid around ten bucks each for pulling a commercial report, but of course pulled hundreds every month. A tri-merge was higher and an automated FICO pass/fail was lower.

One of my business colleagues had several thousand dollars stolen by an employee from the cash box (and it's not a 'cash' business) and I believe tightened security and employee checks substantially after that episode. IIRC, the irony was it was to be given out to employees that day as cash performance bonuses. Great way to reward employer generosity...
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Old 16th December 2009, 1:22 AM   #45
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Originally Posted by Lauriebell82 View Post
Most social service agencies do not run credit checks or even pay for background checks....
In California, I know for a fact they do. They do both, complete with fingerprinting.

Employers run credit checks not really for purposes of checking your credit history. Rather, they run a limited employer report (that doesn't show age/birthdate) to look for judgments, convictions/criminal history, and verifying education/experience/employment history. Credit checks are also much less expensive than complete background checks. They get the information they really need (criminal history, verification of information) from the credit report.

If you're denied a job or fired based on information in your credit report, the employer is required to notify you of this.
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