According to MSN Money's Liz Pulliam Weston, a 2006 member survey conducted by the Society for Human Resource Management revealed that 43 percent of companies conduct credit checks on job applicants.
The Facts
Companies perform credit checks on applicants to gauge their responsibility. If a person cannot manage his finances, a company may be less likely to hire him. In addition, employers may consider individuals in debt a higher theft risk, Weston says.
Significance
A potential employer will most likely conduct a credit check on applicants for a job that involves handling money or other high value items.
Considerations
The bad credit sometimes caused by unemployment can be the very thing that prevents an applicant from landing a job that could improve his credit.
Options
If events beyond your control, such as a divorce or medical emergency, contributed to a derogatory credit rating, discuss it with an employer before a credit check, suggests employment attorney Manesh K. Rath in Weston's article.
Effects
Employers will often conduct a "soft pull," reports lendingtree.com, a credit check that appears on your credit report but can only be viewed by you, not future lenders or employers, and does not negatively impact your credit score.
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