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Employer Credit Checks

 
 
Reply Sat 26 Oct, 2019 08:46 pm
If an employer checks an applicant's credit in order to favor people who spend money at businesses the employer prefers and/or does business with, is there any way to block or regulate that to ensure that hiring decisions are made in the absence of any information about an applicant's spending and/or investments?
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Type: Discussion • Score: 1 • Views: 351 • Replies: 7
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roger
 
  1  
Reply Sun 27 Oct, 2019 01:25 am
@livinglava,
Don't know, but it sounds like that's the main reason for checking - unless it's for some kind of financial employer.
livinglava
 
  1  
Reply Sun 27 Oct, 2019 07:34 am
@roger,
roger wrote:

Don't know, but it sounds like that's the main reason for checking - unless it's for some kind of financial employer.

Is it? I assumed there was some other reason I hadn't thought of. If so, I'm surprised that business people feel legitimate doing that. A lot of people have consciences, so you would think they wouldn't be completely comfortable with such petty discrimination.
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CalamityJane
 
  2  
Reply Sun 27 Oct, 2019 12:56 pm
@livinglava,
You can freeze your credit reports and no one will be able to further check them - only the credit score will be visible.
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jespah
 
  2  
Reply Sun 27 Oct, 2019 01:09 pm
@livinglava,
Your personal credit report doesn't have that level of granularity. It'll show if you owe $ to Visa, but it won't show what you bought with a Visa card. Yes, if you have a card for a store or gas station or the like, they can draw a few inferences. But that's it. They have no idea if you bought a dozen chainsaws at Home Depot or a swimming pool.

Sample Experian personal credit report:
https://www.experian.com/credit_report_basics/pdf/samplecreditreport.pdf
Information on what's in your Equifax personal credit report (note, they show balances, not the specifics on purchases):
https://www.equifax.com/personal/education/credit/report/understanding-credit-report-history/
Sample TransUnion personal credit report:
https://www.transunion.com/docs/rev/personal/Credit_Report_Explanations-Interactive_2014-10-02.pdf

Plus the Federal Fair Credit Reporting Act requires what's called permissible purpose before someone pulls your credit reports. Trying to figure out if you buy at left-leaning stores, or you buy condoms or whatever isn't in there.
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Linkat
 
  1  
Reply Mon 28 Oct, 2019 09:23 am
@livinglava,
livinglava wrote:

If an employer checks an applicant's credit in order to favor people who spend money at businesses the employer prefers and/or does business with, is there any way to block or regulate that to ensure that hiring decisions are made in the absence of any information about an applicant's spending and/or investments?


I would think it unusual for employer to use a credit check to see which businesses you do business with - it basically shows what debt you have and if you have paid debt late.

My take is that most use it for individuals that have access to a company's funds - meaning they are fearful you might be tempted to skim a little off the top.

I work in the financial industry and I remember getting some of this information - we never actually used it to determine a hire and any of us managers felt it was a bit invasive as it is very personal information. Likely that the company has to have a policy overall for all hires so there are some people in very sensitive areas where this would be a necessity.
livinglava
 
  1  
Reply Mon 28 Oct, 2019 02:55 pm
@Linkat,
Linkat wrote:

livinglava wrote:

If an employer checks an applicant's credit in order to favor people who spend money at businesses the employer prefers and/or does business with, is there any way to block or regulate that to ensure that hiring decisions are made in the absence of any information about an applicant's spending and/or investments?


I would think it unusual for employer to use a credit check to see which businesses you do business with - it basically shows what debt you have and if you have paid debt late.

My take is that most use it for individuals that have access to a company's funds - meaning they are fearful you might be tempted to skim a little off the top.

I work in the financial industry and I remember getting some of this information - we never actually used it to determine a hire and any of us managers felt it was a bit invasive as it is very personal information. Likely that the company has to have a policy overall for all hires so there are some people in very sensitive areas where this would be a necessity.

On the one hand I'm glad to hear there is a legitimate reason for it, but on the other it is disappointing because that gives liars an excuse when they use it to discriminate because they want to hire someone with a bigger mortgage or other loans, which accompanied by a good credit score implies they are bigger spenders who will bring more money into a social network and/or community generally.

It's sort of like a woman who picks who she wants to date based on how rich he looks because she wants to be spoiled by a rich man, but then claims that she doesn't want to date poorer men because they will steal from her. Of course, it's not just women who can do that to men but vice versa and I'm sure it happens in same-sex relationships too.

Somehow the universe has the potential for people to do one thing and explain/justify it using another explanation that would be legitimate if it were true.
Linkat
 
  1  
Reply Mon 28 Oct, 2019 04:59 pm
@livinglava,
To be honest I am not sure to what extent it is really used - I just know that most financial companies do have a credit check.

I also know that most (at least areas I work in) would not even look at it.

We also fingerprint and drug test. I've never had a situation where someone was not hired for any of those reasons.
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