Employer denying jobs based on your credit score

[allisolm]

I've seen a number of threads and posts where people are concerned about low credit ratings. As if there wasn't enough to worry about in this area, read the article linked below:

Haunted by credit score .

Some prospective employers are pulling credit reports and denying employment to those with credit problems regardless of their qualifications for the position and some insurance companies are using low credit scores to charge those people more for auto and home insurance policies.

These policies are being challenged in court as being unfair to one group or another.

Fair for an employer to take back a job offer when he finds out you have bad credit? Fair to charge you more for your auto insurance because you have a low credit score?

 

[Amused]

Because of fear of litigation, past employers are fearful of giving honest replies to reference inquiries. So employers have turned to credit scores as an indicator of a person's ability to handle responsibility.

Fair? Life is not fair. Get used to it. An employer should be able to hire and fire based on anything they choose (with the legal exceptions of race and religion).

 

[Red]

Yes, because a credit score has nothing to do with honest people being put in situations beyond their control. A persons FICO is a great determiner of their responsibility. LOL

 

[Amused]

Originally posted by: Red
Yes, because a credit score has nothing to do with honest people being put in situations beyond their control. A persons FICO is a great determiner of their responsibility. LOL

Yes, it is. For most people with bad credit, it is a case of irresponsibility. Is it perfect? No. But it's better than nothing. Especially when sniveling idiots have forced prior employers to stop giving honest references.

 

[edro]

If you were an employer, would you want someone working for you that has claimed bankruptcy many times in the past and has tens of thousands of dollars in debt? This is basically a technicality to deny someone who has horrible credit. If your credit is above a 400... they would prolly hire you 🙂

 

[KB]

Seems fair. Those with low credit scores also tend to be more prone to risky behavior, like theft and drugs. The NSA uses credit scores because those with low credit scores are more likely to sell military secrets.

The problem with using the credit scores is that identity thieves can steal someones identity and ruin their credit score, thus ruining their finances and their job chances. It is a double screw.

 

[dabuddha]

Originally posted by: Amused

Originally posted by: Red
Yes, because a credit score has nothing to do with honest people being put in situations beyond their control. A persons FICO is a great determiner of their responsibility. LOL

Yes, it is. For most people with bad credit, it is a case of irresponsibility. Is it perfect? No. But it's better than nothing. Especially when sniveling idiots have forced prior employers to stop giving honest references.

What about those people who had their "identity" stolen? I guess they're screwed.

 

[woowoo]

Originally posted by: dabuddha

Originally posted by: Amused

Originally posted by: Red
Yes, because a credit score has nothing to do with honest people being put in situations beyond their control. A persons FICO is a great determiner of their responsibility. LOL

Yes, it is. For most people with bad credit, it is a case of irresponsibility. Is it perfect? No. But it's better than nothing. Especially when sniveling idiots have forced prior employers to stop giving honest references.

What about those people who had their "identity" stolen? I guess they're screwed.

Their credit score can be rebuilt.
The bad marks can be removed.


I love this practice
(Look how much I saved on car insurance)

 

[Amused]

Originally posted by: dabuddha

Originally posted by: Amused

Originally posted by: Red
Yes, because a credit score has nothing to do with honest people being put in situations beyond their control. A persons FICO is a great determiner of their responsibility. LOL

Yes, it is. For most people with bad credit, it is a case of irresponsibility. Is it perfect? No. But it's better than nothing. Especially when sniveling idiots have forced prior employers to stop giving honest references.

What about those people who had their "identity" stolen? I guess they're screwed.

Yes, they are. And that's why identity theft is so bad. So the focus needs to be on credit bureaus to make it easier to fix the damages caused by identity theft. And the crime needs stiffer penalties.

 

[Argo]

Banks usually check your credit score before hiring you. If you're going to have access to money, they want to make sure you know how to handle it.

 

[SP33Demon]

IMO it's BS. Where does it stop? Driving record? Your college, high school, and middle school GPA's? If you were ever suspended from school? If you've ever been banned from AT? Whether you're divorced and paying alimony? If you're a single mother or father? None of this should have any weight on whether you are qualified for the job or not. These shouldn't be issues for any non clearance job.

 

[Triumph]

If you aren't responsible enough to manage your own money, how is an employer expected to trust you with their money? (assuming you'd be in a job where you were responsible for spending money)

 

[vegetation]

What about those people who had their "identity" stolen? I guess they're screwed.

The worst part about identity theft is that the victim ends up being "punished" several orders of magnitude more than the perpetrator ever will by the judicial system, even if fully convicted. And very little is being done to improve this situation too.

 

[Amused]

Originally posted by: SP33Demon
IMO it's BS. Where does it stop? Driving record? Your college, high school, and middle school GPA's? If you were ever suspended from school? If you've ever been banned from AT? Whether you're divorced and paying alimony? If you're a single mother or father? None of this should have any weight on whether you are qualified for the job or not. These shouldn't be issues for any non clearance job.

Why not? Many of thhose are indicators of responsibility and ability to handle it.

 

[SP33Demon]

Originally posted by: Triumph
If you aren't responsible enough to manage your own money, how is an employer expected to trust you with their money? (assuming you'd be in a job where you were responsible for spending money)

That's a no brainer, of course if it's pertinent to the job it will be checked, and rightly so. Just as a pizza delivery driver should have a good driving record. As is the same with banks. But there is no reason to check the credit record of a sys admin, programmer, or say truck driver if their job isn't related to the financial industry.

 

[Amused]

Originally posted by: SP33Demon

Originally posted by: Triumph
If you aren't responsible enough to manage your own money, how is an employer expected to trust you with their money? (assuming you'd be in a job where you were responsible for spending money)

That's a no brainer, of course if it's pertinent to the job it will be checked, and rightly so. Just as a pizza delivery driver should have a good driving record. As is the same with banks. But there is no reason to check the credit record of a sys admin, programmer, or say truck driver if their job isn't related to the financial industry.

If a person is not responsible enough to handle their own finances, it's a good bet they are irresponsible in other areas as well.

Want to end this? Fight for tort reform and give prior employers the ability to give honest references. Until then, employers will have to look elsewhere for clues as to a person's ability to handle responsibility.

 

[ggavinmoss]

I work for a financial services company. I think it would be totally appropriate for an abyssmal credit score to be a no-hire condition -- it makes sense.

-geoff

 

[Red]

Some people manage money much more differently than they handle responsibility, if that makes sense. My father makes $130k working for IRS/Dept. of Treasury/Homeland security. His credit score isn't very high because he carries high balances on credit cards and has tons of accounts. He doesn't defaults, but he never gets the best APRs or anything either. Is the fact that his credit is probably in the mid 600s have anything to do with his Masters, Military record, or outstanding career with the IRS? No.

Likewise, people who have filed BK for legitimite reasons shouldn't be punished beyond wrecked credit.

 

[SP33Demon]

Originally posted by: Amused

Originally posted by: SP33Demon

Originally posted by: Triumph
If you aren't responsible enough to manage your own money, how is an employer expected to trust you with their money? (assuming you'd be in a job where you were responsible for spending money)

That's a no brainer, of course if it's pertinent to the job it will be checked, and rightly so. Just as a pizza delivery driver should have a good driving record. As is the same with banks. But there is no reason to check the credit record of a sys admin, programmer, or say truck driver if their job isn't related to the financial industry.

If a person is not responsible enough to handle their own finances, it's a good bet they are irresponsible in other areas as well.

Want to end this? Fight for tort reform and give prior employers the ability to give honest references. Until then, employers will have to look elsewhere for clues as to a person's ability to handle responsibility.

Usually responsibility is ascertained by a prereq min GPA to apply for a job out of college. Not a credit history. Maybe you didn't know this, but people change. When I was poor, young and dumb in college, of course I ran up my credit cards to pay for food/books/rent/tuition and couldn't afford to pay off the balance many times. I had some irresponsible debt as well due to lack of $$, but now that I'm established doesn't mean that I'm still irresponsible now nor will I ever revert back to neglecting some of my debts. People grow up, yet their credit score does not accurately reflect this in that some records stay on your report for 10 years. Hence my opinion of why it shouldn't be used to make a hiring decision unless directly pertinent to the job applied for. But to each their own.

 

[Amused]

Originally posted by: SP33Demon

Originally posted by: Amused

Originally posted by: SP33Demon

Originally posted by: Triumph
If you aren't responsible enough to manage your own money, how is an employer expected to trust you with their money? (assuming you'd be in a job where you were responsible for spending money)

That's a no brainer, of course if it's pertinent to the job it will be checked, and rightly so. Just as a pizza delivery driver should have a good driving record. As is the same with banks. But there is no reason to check the credit record of a sys admin, programmer, or say truck driver if their job isn't related to the financial industry.

If a person is not responsible enough to handle their own finances, it's a good bet they are irresponsible in other areas as well.

Want to end this? Fight for tort reform and give prior employers the ability to give honest references. Until then, employers will have to look elsewhere for clues as to a person's ability to handle responsibility.

Usually responsibility is ascertained by a prereq min GPA to apply for a job out of college. Not a credit history. Maybe you didn't know this, but people change. When I was poor, young and dumb in college, of course I ran up my credit cards to pay for food/books/rent/tuition and couldn't afford to pay off the balance many times. I had some irresponsible debt as well due to lack of $$, but now that I'm established doesn't mean that I'm still irresponsible now nor will I ever revert back to neglecting some of my debts. People grow up, yet their credit score does not accurately reflect this in that some records stay on your report for 10 years. Hence my opinion of why it shouldn't be used to make a hiring decision unless directly pertinent to the job applied for. But to each their own.

When you're an employer and you feel like you have to ask the Magic Eight Ball for clues as to an applicant's history, you'll understand.

At any rate, if you want this to go away, take away the fear of lawsuits for giving accurate and full references.

 

[Red Dawn]

You have bad credit because you lost your job. You need to get a job to take care of your outstanding debts and rebuild your dredit. You can't get a job (a decent job) to rebuild your credit and pay off your outstanding debts because of them.😕

 

[Red]

Originally posted by: Red Dawn
You have bad credit because you lost your job. You need to get a job to take care of your outstanding debts and rebuild your dredit. You can't get a job (a decent job) to rebuild your credit and pay off your outstanding debts because of them.😕

I know what you mean. Poor credit is punishment enough! Hard to get a car, hard to get car insurance, decent loans, etc. Now it's hard to get a decent job 😉 Next thing you know chicks are going to want to know how good your credit is before they consider dating you.

 

[Amused]

Originally posted by: Red Dawn
You have bad credit because you lost your job. You need to get a job to take care of your outstanding debts and rebuild your dredit. You can't get a job (a decent job) to rebuild your credit and pay off your outstanding debts because of them.😕

Living paycheck to paycheck and carrying too high of a debt load is a sign of irresponsibility.

So is living beyond one's means.

 

[dullard]

Originally posted by: Amused
If a person is not responsible enough to handle their own finances, it's a good bet they are irresponsible in other areas as well.

Want to end this? Fight for tort reform and give prior employers the ability to give honest references. Until then, employers will have to look elsewhere for clues as to a person's ability to handle responsibility.

While I generally agree with you Amused, I often think you go too far to the extremes. However, in this case, I agree completely with you. If a person cannot handle their own money decisions, I certainly don't want to hire them to make business decisions. Also lawsuits over bad references are way overboard in my opinion. They are sealed and confidential for a reason. Lets keep them that way.

 

[Red Dawn]

Originally posted by: Amused

Originally posted by: Red Dawn
You have bad credit because you lost your job. You need to get a job to take care of your outstanding debts and rebuild your dredit. You can't get a job (a decent job) to rebuild your credit and pay off your outstanding debts because of them.😕

Living paycheck to paycheck and carrying too high of a debt load is a sign of irresponsibility.

So is living beyond one's means.

LOL, How is the rarified air up there where you sit on your pedestal passing out judgement? Do you choose your friends based on their credit history too?