ANSWERS: 1
  • According to MSN Money, almost half of employers may check the credit reports of potential hires. The Wall Street Journal puts the number much lower, at 16 percent.

    What are Employers Looking for?

    In most cases, employers are trying to determine if you have a significant amount of debt that could affect how you perform on the job.

    Why Does Debt Matter?

    Employers perceive people with high amounts of debt to be more likely to steal money or sell proprietary information. For example, a company might fear that someone with $20,000 of past due debt may by more willing to steal the credit card numbers of customers than someone with no overdue debt.

    Considerations

    Employers are also concerned about their liability for their workers. For example, if a customer's credit card number is stolen, the customer will generally file a lawsuit against the company rather than the rogue employee.

    Function

    When the employer receives your credit report, it does not contain your date of birth, to help limit age discrimination.

    Prohibitions

    According to MSN Money, employers are not allowed to check the credit reports of potential employees in Hawaii or Washington.

    Source:

    MSN Money: How Bad Credit Can Cost You A Job

    Customer Credit Cards: Why Do Employers Look at Your Credit Report?

Copyright 2023, Wired Ivy, LLC

Answerbag | Terms of Service | Privacy Policy