Credit Checking to obtain a job

There are two reasons why we check the credit reports of potential employees. One reason is debatable, the other is necessary. First, the debatable reason. Employers assume that the way an employee manages his/her own responsibilities is in direct correlation with the way they will mange their responsibilities at work. That is, if you are responsible with your own finances it subtly infers that you are proactive in all areas of your life and thus will be positively conscientious towards your job. For instance, if I did find that I was in a financial crunch and I would not be able to meet up to my responsibilities of paying my personal bills, calling the companies that affect my credit report and finding out how I could solve this problem without it affecting my credit would be a proactive approach. Many companies make these types of arrangements. Thus, when an employer checks your credit report it is much like your employer checking your college transcript, the better grades you have the more your employer can assume that you will apply yourself to your position. Many employers do not prescribe to this philosophy because there are many things that can wrinkle your credit. The main reason is divorce, which almost surely destroys your credit report; another is identity theft which is in higher frequency these days. Another is over-working, that is to say, too much time at work and not enough time taking care of your personal responsibilities. The last reason is clinical depression; you were overwhelmed with hopelessness and found no reasonable explanation to pay your bills. Outside of these reasons, your credit report is a good predictor of how you will apply yourself towards your job.

The second reason why we check credit reports is because it is “job related.” You will be directly working with money, checks, or the finances of the company. A credit report is, bluntly said, an indicator of how desperate you are. That is, how desperate you are in need of money and how you are a potential risk to the company to steal, embezzle, or commit fraud. In a situation like this a credit report is one factor of a complete background check. An employer should not use the information on your credit report as the sole determining factor in whether or not you get the position. However one thing must be kept in mind, most credit reports indicate your past employers. So, if I were you purchase your credit report and make sure you list all your past employers on your resume because not doing so is surely a red flag to any potential employer.