Job hunters often ask me (and complain) about the background investigations, including credit checks, that more employers are using these days to evaluate job candidates.
Unfortunately, they have some of their fellow applicants to blame.
“So many employers are seeing resume fraud and misrepresentations,” said Jay Meschke, head of an executive search company in Overland Park, Kan. “There’s a dose of skepticism about every candidate.” Claiming nonexistent degrees and inflated positions is a clear no-no that will eliminate someone from consideration. Honest job hunters understand that. What many don’t understand is why their credit ratings have any bearing on their employability.
“It’s not an acid test, but it’s a data point,” Meschke acknowledged. “In some positions, it’s pretty important. It’s not a stretch for an employer to wonder if they can’t control their own credit, how will they control our company’s?”
For jobs that don’t involve money handling or fiduciary responsibilities, a credit check — fair or not — can be used as an indicator of applicants’ responsibility levels.
Job hunters who have been out of work for an extended period may well have money troubles that can be explained. If that’s the case, disclose it upfront, Meschke tells prospects that his EFL Associates search firm sends to client companies.
“Very rarely will companies run credit checks before someone becomes a viable candidate,” he said. “If you know you’re being considered for a job and you know you’ll have a poor credit report, come clean before the company gets it.” Under the Fair Credit Reporting Act, job candidates have a right to see their credit report and ask the prospective employer to give them a copy of it if the report was used as part of the hiring decision.
Meschke notes that employers aren’t supposed to do credit checks without a signed release form from the applicant.
If the law is followed, job candidates know that their credit rating will be investigated and can begin damage control, if necessary.
——— ABOUT THE WRITER Diane Stafford is the workplace and careers columnist at The Kansas City Star. Her “Your Job” blog at includes daily posts about job-related issues of wide interest. Readers may write to her at: Kansas City Star, 1729 Grand Blvd., Kansas City, Mo.
64108-1413, or by e-mail at dstafford@kcstar.com.
