Should Employers Check Credit Scores?

Should Employers Check Credit Scores?


civil rights and labor advocates are
demanding that uh… employer stopped using credit checks as a way to decide
whether or not they hire an employee okay and they’re specifically at
targeting transient which is a privately owned company that act indians employers
access to credit scores now i think this is a huge problem
because in inouye it helps people discriminate against blacks in my cab
blacks and latinos and other minorities because they use a credit check to decide whether or not they’re gonna
hire someone now give you some more statistics blacks and latinos have lower
credit scores on average at there about five to thirty five percent a lower than
scores for white users right so understands you for your money for
that didn’t primaries behind that is because uh… the average encompassed far lower
than average income of white americans okay now why is that of course is that the million historic reasons that we’ve
gone over and over on the show for that and so now they got a big with their way
out of that the problem is they don’t have enough money so than that hurts the
credit score because it’s much easier for guy who’s only
making let’s say thirty thousand esposa fifty thousand the running the credit problems nowadays so that he turned around and go okay now
you can make less money ’cause when you apply for a job certain about people artists and we’re
going to be considered so your job prospects are worse than you
are in a more predictable than job prospects or zero credit trouble so vicious cycle then other people said i don’t see was
followed by p the at some point you need a job any job to improve your credit score
single-payer health but doesn’t that make sense now i
got away let’s think about this on a more personal level right what business is it for you to know my
credit score is as i could affect my id performance of the job place outlook we
at the intrusive comical uh… you know interviews okay uh… it’s both incredibly easy gravelly
part when you first come in william again where you at the school with your
credit score is we don’t care about anything like that
they are you willing to work at it you sit down right there so i work okay because john walker case the hard
part is now you were there for several months and we’ll see if we hire unicef athletics is a perfect example of
what love you know what a dozen brings us great employees or the most you know out of the most initiative because you care the most and do a great great job right so who gives a damn what their credit
score is i don’t know your credit score did o_j_ oscars for now i know it well this is is it of my exactly the
action care about is are you doing their job or not that don’t email on not all credit score
checkups are teachers enterprise you’re buying a home they don’t know the gun
one though that’s when the check your credit score
that make sense but both were not against credit scores
birthdate which is against credit scores using irrational places to intrude into
our privacy where they don’t belong

Author:

100 thoughts on “Should Employers Check Credit Scores?”

  • @bananihana Actually, its not that. Credit isnt affected by criminal record.

    I have been in management though I never was in hiring
    But the reason its done is because if they have a few people to choose from they want to find reasons to cut people out and make the decision easier
    The thought is, if you have low credit its either because you lack experience in responsibility by not having enough credit history
    Or you are bad with money, so why should they trust you with their financial interests

  • This is yet another issue that keeps the common man down.
    The ones who have it worse off get abused the most.
    I am not wording it right, but its like the credit card documentary I just watched.

    A banker admitted, those who could least afford penalties are the ones paying for people to have so called free credit accounts.

    Lower class/poor continue to be kicked while they are down.

    Left and right, you can work your butt off and still be in the gutter due to the way the system works.

  • Who gives a shit about credit score, they still hire stupid shit people without brains. Instead of hiring someone qualified or overqualified, they hire the dumb shits.

  • scoobywhoproductions says:

    It is so wrong on many levels to check the prices credit score when considering a job not to mention that most companies would never even told you that they will check your credit score order for you to be hired I think the system is terrible it brings down blacks and minorities

  • AssRapingHorseCock says:

    That person without a job for months, who has a bad credit score is probably going to work the fucking hardest just to get that credit score back up.

  • TYT do you practice NON-paying internships?

    How is someone expected to survive while you "think" about actually hiring them?

    And if you don't, all that time wasted for NOTHING.

    You don't have to pay them a full salary but Minimum wage at LEAST.

    Seriously.

  • TruthAndMoreTruth says:

    Credit and credit scores are a result of for profit services.
    Unless you are engaging in these services, there is NO need to observe one's history.

    No different then your magazine suscriptions, social networking habits, cable suscription service or other personal transactions one might engage in.

    It's AGAINST THE LAW to ask how much debt one carries, or if one ever paid an electric bill late.

    Why a law firm hasn't jumped on this… is beyond me.

  • I recall hearing how having bad credit can prevent you from getting a job, which surprised me at first. And at the same time I find this to be ridiculous to not hire them when they are in financial need, which is the point in finding a job in the first place. Instead of picking out the flaws in a person's life, look at experience and skill to hire them. Then again businesses are too damn picky these days.

  • I can somewhat understand companies performing credit checks for positions where people would have access to money as a form of weeding out individuals who may not be financially responsible and possibly have motive for committing a theft crime in the future. If that were the case, you may as well perform some sort of fidelity check to make sure the person you hired didn't have a mistress on the side. I've seen enough Crime shows where that's been a motive for criminal behaviour.

  • @Di0genesus I didnt know that, I'm from New Zealand and have used some agencies here to help me. My credit is about as fucked as you'd ever see but I wasnt too sure how things work over there.

  • Bravo, TYT, for once again managing to turn this into a race issue when it's totally irrelevant. I agree that searching job-candidate's credit history presents a circular problem and, frankly, I'm against it. But I think it's unjust to poor white people as well as poor minorities. Poor and desparate is poor and desparate. Race is irrelevant here.

  • They didn't make it a " race issue", they pointed out that this can be used for racists to not hire people of color. They stated a fact.

  • Am i missing something?
    HOW IS THIS A BLACK ISSUE?
    fuck you tyt srsly, do you realize that not every white person works on wallstreet.

  • LOL, So if blacks and Latinos make less money, why are they buying on credit in the first place? I cannot afford a Mercedes Benz so I do not get one on credit. If I want a Mercedes, I go to school, get good grades, finish, get a decent job and THEN pay for it.

  • @Carlo not sure why you assume It's just blacks. It's other people too. Latinos and blacks just make up the large part but people of a different ethnicity can be subjected to the dame discrimination too. But your spill about going to college…minorities do the same thing yet still find it extremely hard to get a job. If only it were that simple. Best man for the job, hard worker blah blah blah. It's bs.

  • TheGirlLovesSports says:

    I really wish they'd leave race out of this discussion and stop assuming all blacks and latinos have fucked up credit cause it's not true. And on average even a black boy on the projects has access to a decent community college so please spare me the historical reasons bs. Bad credit transcends skin color, I have some wealthy caucasian friends who have bill collectors calling their house from a living–how do I know this? One of their maids who's Hispanic told me. -_-

  • and once you get your credit check for your home loans, the bank screwed you over with a mortgage that you cant pay off.
    YAY!

  • and not all poor people have bad credit. I like how TYT assumes black and Hispanics have bad credit. If im poor would it really be smart to take out a credit card, knowing i don't have the money to pay it back

  • Arthur Krebsbach says:

    The justification I have heard is related to the likelihood of stealing from the employer. If someone is in deep debt the assumption is that they are an increased theft risk.

  • Sometimes I wish I can just save $15k and pay my car straight out from the bank account in a way of saying a big "fuck you" to the creditors. But no, they don't want that. They think responsible handling of money is also bad credit D:

  • How the hell is this a race issue? I'm white and having been trying, for most of this year, to pay off my credit card debt. Never again will I ever use a credit card. Credit card companies along with banks are evil little institutions set up to fuck you. And with all the bozos and their de-regulation they got away with murder. With credit cards they seem to arbitrarily raiise your minimum balance so you're always just paying off the interest while remaining in debt.

  • I am white and my credit score has never been over 6 hundred….credit companies are a scam, boycot cc and banks, start using pre-paid cards and Credit unions (I know that sounds bad).

  • The reason they check credit is because they want to know if you're a "fiscally responsible adult".

    Now, this could make sense if they bring it up during an interview. "Why is your score 550?"

    Answer: I had identity theft or I was over my head in college so now I want to pay back what I owe…

    It's not used like that though typically!

    If you are in a position of money though, it makes sense to know your score. If you make software dev, you're not going to rob the company anytime soon..

  • if i had to pick between hiring sum1 with good credit and bad i would go for the guy in debt it means he will value his job more

  • I'm against free labor on the "chance" of employment. Unpaid internships, or just plain "sit down and work and after a while we'll see if we hire you." That's bullshit! Companies use to have paid probation periods of 3 mo. Some today have 6 mo or a yr. But the new hires are paid less, have no benefits and are trained. At the end of the probation, they are evaluated and a new salary, if hired, is given plus benefits. Temp employees are the same today.

  • what business does Government have dictating to private firms, where owners risk their capital and have every right to manage as they see fit, telling them what criteria should be used in hiring?

    Ana has never run a business so what the fuck does she know?

  • Ehm, don't you want a job, or a new one, to actually MAKE some money to improve the fucking credit score? What a crazy shit.

  • @genie0390 You're absolutely right, of course. What business does the government have telling private companies that they can't, say, refuse to hire black people? Hispanics, maybe? Women? Not for any particular reason, just because they happen to be part of those groups. Obviously the government shouldn't be involved at any step of the hiring process.

    Also, taxes! Where does the government get off telling those sacred private firms where a small amount of their money should go?!

    Fucking hell.

  • @ReverendShmun

    you're right on! Businessmen who risk their capital owning a business shouldn't have any say as to who works for them???

    Government should interfer with business decisions and when things go bad, lets blame capitalism, NOT fuckin government!

    with people like you roaming the streets, this Country may be doomed!

  • @Cptstarcrunch1 They've been discriminating against ppl w/ low credit scores for years already. Also now insurance companies can charge you more money for services because of bad credit. Because your a risk that you may not pay the charge you more money. Can you say crushed to death in debt!

  • I guess it depends on the job. If your job is managing money for a small company, a personal credit score actually may be pertinent. But otherwise, it's total bullshit.

  • @Cptstarcrunch1 Yeah I know, its terrible! The excuse is "if you have lots of debt you'll be tempted to steal from us." What ever happened to being innocent until proven guilty!

  • No, they shouldn't, its not their business as to whether or not you pay your bills…
    furthermore, this could pose a problem because if your employer checks your credit score and it is low, hindering you from obtaining a job, then you are in a deeper hole because now you cant get a job to pay off outstanding debts and increase your credit standing and standard of life in general.

  • AndJusticeForALL says:

    I would think companies would rather hire people with lower credit scores because these people will work harder and show up Everyday because they need the money to start raising their credit scores!!!

  • gobblegobblechew says:

    to become a police officer you have to have a a credit check. Can be a conflict of interest if you handle money or valuables in a position of authority, at the same time up to your neck in debt. I doubt pizza delivery companies would employ this strategy.

  • You need to do a credit check because if you borrow Monet from fellow coworkers and don't pay them back, there's going to be issues…

  • LEARNTOPLAYCRAPS says:

    You don't need credit to buy a car, house or anything you need. You only need credit to buy things you don't need…….or only want before you can afford to pay for them. That's what credit is……..promise to pay in the future. I keep my credit score in the toilet on purpose so I don't have to worry about someone stealing my identity or credit. I pay cash for everything and save for what I would like to have but can't yet afford. Way better to live within your means and not borrow.

  • First off you were wrong to start off, Ana and Cenk never assumed anything. Second off this isn't a fallacy, it's very possible someone can be not picked for a job because of their credit rating.

  • They checc your credit score at the cheesecake factory if u want to be a server, or bartender… That makes no sense to me

  • These HR departments are getting crazy. Just LOOK at the person when you interview them. Are they qualified? Do they answer your questions competently? C'mon ppl. You don't even have to watch out for drug use since a lot of big brother corps test for that too.

  • pimpinnevaslipin says:

    What does credit score have to do with. . whether you can do the job or not?. . .

    " Even though you qualify for the job when it comes to education & previous jobs, we can't higher you because your credit score is too low ". . .

    that' doesn't make any fucking sense. . . . America companies and businesses are becoming more and more annoying everyday

  • @zaggers77 Google the fallacy for better understanding. Hold control and F and then write my screen name to find my posts so you know where I am coming from. An employer cannot simply hire everyone. There is a criteria that it looks at to select the best applicant. Credit rating is one such criteria and is used by our government also. The unintended consequences of such a policy is that the Black and Latino people with good credit will not get hired because the business cannot look at it.

  • @zaggers77 The credit company will lose jobs because it would be forced to not provide credit rating to businesses. The credit company will not be able to grow as fast or add as many jobs. Nothing is free, there is a price for everything.

  • @hofifut Wrong again. I'm open-minded but not to every single point of view that is out there. I'm open-minded to rational, meaningful, fact-based points of views. Someone else's financial history/business is absolutely none of my business unless I am planning on going into business with them. If I had a daughter, her fiancees finances would be HER business- not mine. To me, it's as personal as asking for someone's medical records. Where do you draw the line?

  • BooGooNFlowoo4Evoo says:

    Young People: Default on debt as the result of choosing the wrong partner or the wrong friends, or even just from bad luck, and you are screwed for life. You graduate from college and you can't get a job in this bad economy that will pay the credit card bill. You are unlikely to find a job that pays more than $12.00 an hour (slightly more in Northern states). If you value your life or your immortal soul, do not ever get a credit card or go into debt for any thing.

  • BooGooNFlowoo4Evoo says:

    College students make mistakes, and have no idea that it will cost them a career. I've seen this lots, especially in the government and financial sectors: somewhere in the posting or on the application, it says that if you have a bad credit score, or more than $5,000 of defaulted debt, you will not be hired. They view it as a product of your personal judgement, and consider you a vector for corruption, when in actuality people in debt work much harder to pay it off.

  • Surprised they didn't explain WHY they do those credit checks. It's because someone did a study that said people with poor credit scores are more likely to steal from the company they work for.

    That's why they do it, economic racism at it's finest… Have a poor credit score? You must be a dirty thief!

  • @hofifut No, it's not that kind of business relationship and medical records can indeed signify behavior as well as make an employer think twice about hiring someone who had cancer and had to miss work repeatedly. Also the information in credit reports do not reflect the complexity and truth to financial management behavior. Someone who pays off the balance of their credit cards is given a LOW credit score while someone who maintains a balance is given a higher score. It's not about truth.

  • BooGooNFlowoo4Evoo says:

    @DisturbedHavok Payday loans need to be severely regulated. I know that the military no longer allows members of the armed forces to take out payday loans.

  • Ironically, NOT borrowing money can also lower your credit score. Someone who only pays cash may be very responsible – and still have a low FICO score.

  • @Raizhen010 How good a worker you are?

    I know somebody who runs a store chain, a cashier took money out of the cash registers (which the store director should have removed from the machines at least once a day, but didn't do so for 4 days!) and then she left. The amount of money stolen was greater than the cashier makes in a year. They SHOULD have checked her score (*which BTW, was terrible*).

  • @romanmir01 But how are they correlated with each other? Having a poor credit score doesn't automatically mean you're going to steal. They aren't related. Someone can have a terrible credit score and be a great worker. The opposite could also be true. You can have a great credit score and be an awful worker. Besides, how could you improve your credit score if no one will hire you because of a poor credit score, which may or may not be your fault.

  • @Raizhen010 Hey, if I have 2 resumes and they are no different, I'll find some way to discriminate. We must discriminate on something, we always do. We discriminate on who is our significant other. We discriminate what restaurant to go to, etc.etc.

    If I have 2 resumes and both qualify but I need 1 of them – this a great time to do a credit score check.

  • @LeksServices if you are poor it doesn't mean you also have to steal and live beyond your means, no?

    How about this is discriminating against those, who are not only poor but also are irresponsible with credit?

  • Soooo.

    The service the credit company providing isn't even needed in this situation.

    Also, you're assuming that the credit company will lose jobs. You don't know the state of credit companies around the US and how much they rely on money from jobs who are checking credit scores

    Really that's a weak ass excuse.

  • @zaggers77 Why is the service of the credit company not needed? Is it because the government said it is not needed? What I wrote is according to the free market economics. The credit card company is in the business of providing credit scores. By business logic if it is forced to not give out credit scores then it will lose business. The result of less business is less jobs. Either jobs will be destroyed or not as many will be created later. It is the government that distorts the natural market.

  • A credit check is an easy way to confirm someone's address and employment history, that's assuming the credit report is correct, but tests have shown the majority of credit reports contain multiple inaccuracies and it's because they are so often inaccurate that I do not think employers should be able to run someone's credit as a part of the hiring process.

  • This isnt discrimination against blacks and latinos, but against all poor people. The corporate masters dont see color, they see money. They make more money when you make less. They want it to stay that way and be business as usual.

  • It depends on the job. I've had several security jobs and having an atrocious credit score is a security risk. Someone one with horrid credit is more likely to have bad debt, someone with bad debt is more likely than someone with out to give up valuable information in exchange for cash to payoff those debts.

    Should someone at McDonalds be getting credit checks? Probably not. Should someone working for IRS, TSA, or a plethora of other government agencies with access to private info? ABSOLUTELY.

  • CREDIT SCORING MODELS ARE BULLSHIT. The three credit repositories will not reveal the formulas. i work in the industry and have been to several seminars where scores are supposed to be explained. Only generalities are explained.
    Manipulation of scoring was a huge factor in the housing bubble. Suddenly college kids w/no history have 700 scores. completely fabricated.

  • As I said before you don't how much money the credit company will lose and how much of an impact this will make on them. Therefore, you can't say that they will lose jobs because you don't know what the impact of the loss of the ability of the credit company to check credit scores of potential employees will be.

    All that being said, in most cases there's no reason for your employer to know your credit score any ways. It's none of their business.

  • @MissTemperence
    This segment has nothing to do w/ refusing interviews for minorities. Credit checks are done after a candidate has been interviewed once the company is serious about an offer. These credit checks cost money and no company is going to waste money on a credit check for someone they're not serious about.
    Credit scores aren't inherently discriminatory. It rates credit worthiness. You can maintain a high score even while being heavily in debt by just making minimum payments.

  • Yes it's ridiculous and it discriminates on not latinos and blacks. I have a B.S. and I got into trouble lending a friend money. I've paid off all of my credit cards but I am behind still on other things. I got turned down for a TSA job even though I scored 100 on there stupid tests over these black people who have their pants falling around their ankles and can't even speak proper English….WHAT. It's hard to have bad credit when you've never had a JOB and have been on Welfare your whole life

  • Awesome now if you have bad credit you will never be able to get a job to make money to fix your credit!! This fucking country is getting more awesome by the day!!

  • Lie detector tests, personality profile, Wonderlic BS tests are all filters that can be used to discriminate. Esp. personality tests that can be interpreted any way that is convenient for the moment. Refuse to take tests for a job. I have a degree and I'm in a job interview not in high school. Someone trying to claim that these test results are cause for not hiring an applicant are as credible as a palm reader or a psychic reading a crystal ball. There more filters than just credit checks.

  • BareseMaledetto says:

    eventually you'll have to show up at a job interview with an entire kit. "here is my resume, references, salary history, credit check, drug test result, x rays, bone marrow sample, semen sample along with sperm count, a letter from my mom certifying she breast fed me, my facebook link ….now wtf else do I have to do to be a door greeter??"

  • erpfanatic65 says:

    The only propaganda is that credit checks are needed for employment. I hope one day you get laid off and cannot find work again so soon. You will then see your savings drain in no time, as the cost of living is ridiculous. Once you are out of money, guess what, you won't be able to pay bills. When you cannot pay bills, your credit score takes a shit, even if you are very responsible. So it isn't always folks getting credit with no $ to back it up, sometimes it's good folks who the fall.

  • Credit reports were NOT designed to be used for employers to determine someone's eligibility for a job, they were designed to be used if someone wants a loan from a bank or applies for a credit card etc. It's actually illegal in 8 states for an employer to pull a credit report & use it towards a potential employee. Credit scores 7 reports do not reflect how well someone will do their job, especially now after the market crash when almost everyone has lousy credit,it's keeping people uneomployed

  • no it doesn't. someone can get divorced & it'll lower their score & produce a lousy credit report, someone can become sick and have bad credit as a result, if someone is laid off and becomes unemployed their credit will be bad as well, crediot reports are only for banks giving out loans or companies extending credit, they're not meant for employers which is why it's illegal to do in 8 states & eventaully across the country in a few months.

  • checking one's credit score has no place in the hiring world. it was originally intended for banks-if you want to take out a loan for a home or to buy a car, it was never meant for employers. employers used to only run a criminal background check and that was it. today, they're packaging the credit checks in with the criminal background checks and calling them "background checks". My credit has zip to do with what kind of job I have or how well I'll perform at said job. Not all bad credit is related to poor money management either, or mismanagement of funds. People who get divorced, people with medical bills, etc. can all have bad credit, and those credit checks they run usually do not tell the employer WHY your credit bad. How they're allowed to get away with this is beyond me.

  • It doesn't matter what skin color you are when it comes to credit,90% of America has bad credit, I've been doing credit for years and it's more white people that I have that are my customers more than any other race.

  • Matthew Moselle says:

    I can't believe what I'm reading in some of these comments. People are seriously implying that individuals with bad credit scores are more likely to steal. That's like saying a man who listens to jazz music and wears pink socks once a year is more likely to be a homosexual

  • Banks and other financial institutions do check credit scores. After all, if someone is going to be working with other people's personal and financial data, that applicant should be financially responsible. Auto insurance companies base their premiums on statistics. They pay big money for statistical data. Statistics show people with higher credit scores are much less likely to be at fault in an accident. Homeowners are also on average 16% less likely to be at fault than renters.

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