Why Do New Employers Need Your Credit Score?
Maintaining a good credit score is always important, but it can also cost you a job. In today's economy, more and more employers are looking at your credit score as a way of weeding out the large number of applicants. Knowing the reasons why employers check your credit score will help you in your next job search.
Other People Are Reading
-
Employment History
-
Employers check your credit in order to verify job history and identity, including your Social Security number.
Credit History
-
Employers use credit reports to show loans, credit debt, and other financial obligations. These scores can show potential liability, as an employee who is heavily burdened by debt could be more likely to embezzle or steal.
-
Working for Financial Institutions and the Federal Government
-
Financial institutions will do background checks because most positions involve the handling and transfer of large sums of money. The federal government also does credit checks when the position is related to finance, and even can withhold a promotion due to high debt.
Fear of Lawsuits
-
Employers who hire employees who steal are more likely to be sued than the employee who committed the theft. A simple background and credit check could limit a business's liabilities.
Indicator of Responisbility
-
Employers believe that a high credit score is a good indicator of a reliable individual. When looking to promote employees to a position with greater responsibility, employers may do a credit check to make sure the employee is consistent and can be trusted to manage tasks.
Consent
-
An employer must first get consent before they can run a background check on a prospect. Failure to comply, however, can have a more adverse affect on your application than if an employer were to see bad credit on your record. Go into the interview process knowing your credit ahead of time, and you will be in a better position to discuss potential problem areas and address hiring managers' concerns.
-
