Hope you are either hiring for a financial institution, executive or management personnel, or for positions that work with contracts with defense, intelligence, national security, or space agencies of the federal government...otherwise what you are doing is illegal.
Wrong. Unless you live in a
state that prohibits or limits credit checks, you can absolutely run the check and use it as part of your hiring decision as long as you follow the
rules, which say nothing about the type of job. Nice try, though.
To the people saying they'd rather avoid issues by not giving a bad reference, I say you're lazy unless you're specifically instructed to give no information by your employer. I've had references save me a ton of hassle by giving me a real, honest assessment of a person who otherwise looked good on paper and/or during the first interview. As I said in another post, if you had a spat with someone who you think may give you an unfair reference, find another person to use. If you're too dumb to figure this out, then you deserve whatever the person says about you most likely. Yeah, some situations will break the mold, but use your brain and work around it. I've literally had people tell me why they weren't using seemingly important references from previous jobs and their explanations were logical enough to pass my sniff test. This leads me to my next point:
I don't understand references... you should be able to figure out if the person is hirable from your own judgement. If they end up sucking, then find someone new. References are unreliable, from people you don't know, and from circumstances/times you have no idea about.
You must not own a business or understand how much time it takes to hire someone for a professional job. Creating and running an ad can be expensive and very time consuming especially if you want to find an intelligent person because they don't always stick out in a massive pile of resumes. Also, people lie and put on a good face during interviews, so references help mitigate the risk that the person is really a dud. 'Finding someone new' is a ridiculously lazy and unacceptable approach if you care at all about your time. I paid a lot of money to a lawyer to know exactly what I could say and do to make this process as efficient and dependable as possible. Big businesses have dedicated people to do this, but that's way too expensive for a small business. I have to take time out of my incredibly busy schedule as well from some of my employees to interview prospective employees, so it needs to count. I would love if I could wave my hands at this and have it done correctly, but that's just not how it works.
Credit checks... also a little ridiculous. You don't know what the circumstances are. Yeah, thats 'not your problem' but I wouldn't put a lot of weight to that if they were otherwise good candidates.
If someone tells me up front why their credit score is low and it isn't a serious red flag, I'll consider it a minor issue. If I find it on my own after I specifically ask if I will find any surprises, they're out. Using it blindly would be stupid, but that's not the only way to use the information.