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Does anyone know why companies not only do a backgroung check but a credit check now when they are hiring?

jellybean1420 Posted:

Does anyone know why companies not only do a backgroung check but a credit check now when they are hiring?

I dont understand the purpose behind it.

RadioLau Posted:

Re: Does anyone know why companies not only do a backgroung check but a credit check now when they are hiring?

Yes that happened to a friend of mine. SHe actually didn't get a job because of it.

ewickens Posted:

Re: Does anyone know why companies not only do a backgroung check but a credit check now when they are hiring?

1. To make sure you're not involved with any fraud.
2. It's another way of checking your background -if you have a family, children, etc. Some jobs I've seen actually ask if you're married, if you have kids, etc.
Boston&NY2006 Posted:

Re: Does anyone know why companies not only do a backgroung check but a credit check now when they are hiring?

Companies check credit because bad credit can be an indicator of how responsible a person is. I'm not saying that I think bad credit makes you a bad person, but if someone is really in debt or doesn't pay their bills on time, most companies want to know about it because they see it as an indicator of potential poor performance on the job.

Ang&Rich Posted:

Re: Does anyone know why companies not only do a backgroung check but a credit check now when they are hiring?

Posted by ewickens
Some jobs I've seen actually ask if you're married, if you have kids, etc.


That's illegal
BellaEyes Posted:

Re: Does anyone know why companies not only do a backgroung check but a credit check now when they are hiring?

Posted by Boston&NY2006

Companies check credit because bad credit can be an indicator of how responsible a person is. I'm not saying that I think bad credit makes you a bad person, but if someone is really in debt or doesn't pay their bills on time, most companies want to know about it because they see it as an indicator of potential poor performance on the job.


Just what I was thinking..kinda big brotherish.. but hey.. they have to do what they need to right?
CLMon7906 Posted:

Re: Does anyone know why companies not only do a backgroung check but a credit check now when they are hiring?

i think it's wrong.

smurray Posted:

Re: Does anyone know why companies not only do a backgroung check but a credit check now when they are hiring?

I do the background checks through my job,a nd I can't begin to tell u what automatically comes up when u run a Carco search. I as well a s my boss have literally had screaming matches w/ clients re this issuse. It's so irrelevant but for some reasons clients do want it. they say it tells a persons character. I don't agree but thats the BS excuse they tell us.
Watch out b/c their now going as far as doing DMV checks as well
Meaghan729 Posted:

Re: Does anyone know why companies not only do a backgroung check but a credit check now when they are hiring?

I work in finance - so they do a credit check because if we aren't capable of handling our own credit - how could we be able to analyize someone elses?

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smurray Posted:

Re: Does anyone know why companies not only do a backgroung check but a credit check now when they are hiring?

Posted by Boston&NY2006

Companies check credit because bad credit can be an indicator of how responsible a person is. I'm not saying that I think bad credit makes you a bad person, but if someone is really in debt or doesn't pay their bills on time, most companies want to know about it because they see it as an indicator of potential poor performance on the job.


This is soo true, But I always reply to a client w/ 'if they don't have a job, how can they pay their bills?'
jellybean1420 Posted:

Re: Does anyone know why companies not only do a backgroung check but a credit check now when they are hiring?

Well I am nervous now b/c FH and I just bought a house, I still havent closed on my co-op and we have made several big purchases and wrakced up credit card bills b/c of the house over the last couple of months. I cant imagine my credit is great right now. This would suck if I dont get the job b/c i buoght a house.
smurray Posted:

Re: Does anyone know why companies not only do a backgroung check but a credit check now when they are hiring?

Posted by jellybean1420

Well I am nervous now b/c FH and I just bought a house, I still havent closed on my co-op and we have made several big purchases and wrakced up credit card bills b/c of the house over the last couple of months. I cant imagine my credit is great right now. This would suck if I dont get the job b/c i buoght a house.


In ur situation it would be different. Most clients look for derrogatory items. Things that are outstanding, and are far past due
smara Posted:

Re: Does anyone know why companies not only do a backgroung check but a credit check now when they are hiring?

My companies does it in part becuase they give out corporate cards.. I dont think they wont hire you becuase of it becuase soemone go t declined and they had to call the card company to get his card..

Ang&Rich Posted:

Re: Does anyone know why companies not only do a backgroung check but a credit check now when they are hiring?

I don't think that purchasing a home will count against you. I believe that they are looking more for declared bankruptcy, fraudlent claims, sever debt.

For example - student loans paid in a timely manner without delinquency are not considered bad debt.
tracy2246 Posted:

Re: Does anyone know why companies not only do a backgroung check but a credit check now when they are hiring?

In most cases with finance it is also because you are dealing with sensitive information -companies would rather not hire someone who potentially would use that information to help the bad scenario they are in.

But it is crappy-
Boston&NY2006 Posted:

Re: Does anyone know why companies not only do a backgroung check but a credit check now when they are hiring?

Posted by Ang&Rich

Posted by ewickens
Some jobs I've seen actually ask if you're married, if you have kids, etc.


That's illegal


That IS illegal! We are not even allowed to ask questions in an interview regarding ANYTHING personal when we I conduct interviews for my company. We have a whole list of prohibited topics (I can't even ask, 'Where are you from?')...Companies cannot seek information about someone's marital status or number if children, because using that during the hiring process is discriminatory.
Boston&NY2006 Posted:

Re: Does anyone know why companies not only do a backgroung check but a credit check now when they are hiring?

Posted by jellybean1420

Well I am nervous now b/c FH and I just bought a house, I still havent closed on my co-op and we have made several big purchases and wrakced up credit card bills b/c of the house over the last couple of months. I cant imagine my credit is great right now. This would suck if I dont get the job b/c i buoght a house.


They usually are just looking for delinquint loans/debts, or really outrageous amount of debt. Student loans and mortgages are considered 'good debt' as long as you're paying them on time.
2Be1 Posted:

Re: Does anyone know why companies not only do a backgroung check but a credit check now when they are hiring?

Sheesh what next dental records, blood samples, pap smears
FallBride05 Posted:

Re: Does anyone know why companies not only do a backgroung check but a credit check now when they are hiring?

Posted by CLMon7906

i think it's wrong.


Think about it this way:

I used to work on the sales side of the insurance industry for the VP of sales. He would essentially have to approve each hire. So think about this:

Someone wants a job as a Financial Advisor/Planner, would YOU as a prospective client want someone to be responsible for YOUR money and advising you on financial decisions when they can't even take care of their own finances? For me, I certaintly wouldn't.

Also, depending on the kind of debt, history (bankruptsies, repo's etc....) that person could be a potential threat to steal $$ especially in the financial services industry. I've seen it more times than I can count. There are extenuating circumstances though when an exception is made. Depends on the circumstances surrounding why that person is in debt. Was it because of divorce, illness, etc.... then my boss would usually make an exception but would keep an eye on that person for a while.

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