Employers don’t like surprises. They want to know everything there is to know about you, which is why you shouldn’t be surprised to learn that many look at prospective employees’ credit reports as part of their application process. One 2010 study from the Society of Human Resource Management estimates that 60% of companies checked some (or all) job applicants’ credit reports. This is a practice that many people understandably find objectionable – some find it offensive. After all, credit reports often have errors. Nevertheless, it’s a reality — one that anyone looking for a job needs to consider. The truth is, applying for a job is more art than science.
The reason many employers like to see credit reports is straightforward: Many believe that someone drowning in debt will be more focused on his or her personal financial issues than work, or that a long history of unpaid bills, foreclosures and delinquencies could be indicative of a lack of responsibility and good decision making skills that could ultimately hamper job performance.
Column by ADAM LEVIN (@adam_k_levin) , Credit.com
Sept. 22, 2013