Jeff Altman, The Big Game Hunter answers about the likelihood your credit report will be checked prior to being hired.
Someone wrote to me as part of researching an article that she was writing asking whether firms really use credit reports as part of the hiring process. The answer is that is generally restricted to firms in the financial services industry-- banks, credit card companies, investment firms, occasionally firms to provide services to those industries. Generally, his financial institutions that require this.
Why? If you look back at their history, people who were employed by them have access to people's money very easily and they were concerned that someone might be tempted to steal. The policies even carry through to these days with computers and automation and such because it is easier to steal in many respects. Can you imagine what would happen if you have stolen "grandma's life savings?"
They get a lawyer who presents the case very simply, "So you knew this person had bad credit. You knew they were in deep kimchi financially and you still hire them and still put them into a situation where they have access to people's money, right?"
"Well, they seemed so honest."
"Your judgment was faulty about that." The financial institution loses the case, their insurance company might not pay off on the claim and thus the bank (I use bank is the example, credit card company, whomever) is out-of-pocket and that is investor money. If you think that is the "1%" you may be the 1% with your IRA and 401(k).
When all is said and done, financial firms try to avoid hiring someone who they perceive is credit risks. If you are pursuing careers in that industry, it is important to maintain a pristine credit history so that you don't work hard to get a job that, at the end of the day you're not to get hired for.
EP 373 Jeff Altman, The Big Game Hunter is an executive job search and business life coach who worked as a recruiter for what seems like one hundred years.
If you are an executive who is interested in 1 on 1 coaching, email me at JeffAltman(at)TheBigGameHunter.us
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