When applying for some jobs, why do they check your credit?

Question

Why is it that some jobs check your credit score? Is this normal? Is it even legal?

Answer 1

It is possible for an employer to check your credit score and it is legal. As long as you give them permission. You have every right to refuse BUT the employer also has the right to not give you a job.

The reason is to get an overall feeling for your integrity, discipline, and lifestyle. People in debt are more likely to embezzle, etc. A low credit score can also indicate that you make poor choices in your financial and purchasing deals.

If you are refused a job you are qualified under the Fair Credit Reporting Act to get a copy of your credit report.

Source - Legal Match

Answer 2

Some check as part of a background investigation. Money problems can make it hard to establish a level of trust. If your credit is bad you might be easy to bribe. Or you might steal from the company.

The level of importance will depend on the job you are applying for, or for the customer you will be working for. Government jobs or government contracts frequently require background checks. Jobs that will involve having access to high value items or money will also require a check.

Answer 3

It makes sense that a credit score is a history of how you have handled monetary commitments. It allows the employer another method of evaluating you. Whether it provides useful information to the employer is another question. It may give them an idea of if you make risky decisions, take on too much at one time, or if you are able to repay on time.

From my recent job search as a recent college graduate, this was not normal.

As far as I'm aware it is legal, but you do have to give consent.