Credit Reports and Potential Employers/Landlords/Spouses

[UpstateNYUPSer(Ret)]

There is a growing trend among employers, landlords and, yes, spouses, to pull a credit report on potential employees/tenants/spouses as part of the application process. The premise here is that a credit report paints a picture of an applicants financial history and that the manner in which they handle their finances will carry itself over in to the workplace/residence/marriage.

I personally don't have a problem with this as I do believe that they way that a person handles their finances is a reflection of what type of employee/tenant/spouse they will be. I included spouse as there have been far too many marriages ended because one spouse failed to disclose their financial baggage to the other.

 

[moreluck]

In the past it used to be if a credit report was pulled for you and you didn't get credit somewhere, that would register negatively on your report. Then, we didn't just go around getting credit reports on people. Now, it's different.

 

[UpstateNYUPSer(Ret)]

In the past it used to be if a credit report was pulled for you and you didn't get credit somewhere, that would register negatively on your report. Then, we didn't just go around getting credit reports on people. Now, it's different.

There are two different types of inquiries, hard and soft. A hard inquiry is when you are applying for credit and the creditor pulls your report. A soft inquiry is when you check your own credit or when your credit is checked in conjunction with an application for employment, prior to signing a lease or by credit cards when soliciting for new business. Hard inquiries do impact your credit score; however, all inquiries made within a two week period are treated as one inquiry. Soft inquiries do not impact your credit score.

 

[upsgrunt]

So a financially responsible person, who pays cash for everything, has no debt, and doesn't really need a credit score, would be looked down upon by a potential employer because of it? How about someone just starting out without credit- in order to get credit and a FICO score they need to have some debt but can't get it; it's a vicious circle.

Bottom line to me is: unless it is a severe security issue, your credit report should have nothing to do with your ability to do a job. IMO

 

[brett636]

I can see how someone manages their finances may impact how they handle themselves in a job. If they are consistently late on paying bills or lets old debts hang around with out doing anything about them shows someone who is unorganized and possibly unable to prioritize their life's obligations which could translate into this behavior in the workplace as well. I can see an employer or potential landlord using that as a red flag to not hire or rent to someone. Where I object to use of credit reports are things like auto insurance. If I forget to pay my visa bill this month am I really more likely to go crash my car? The logic just does not compute.