Corporate America And The Credit Score

Mitchell wants to know why employers are checking credit before hiring. Dave explains that it's typically Corporate America who wants to check a credit score.

QUESTION: Mitchell in Napa wants to know why employers are checking credit before hiring. Dave explains that it's typically Corporate America who wants to check a credit score, and it could be related to the type of work you're being hired for.

ANSWER: It's not unusual. Usually, it would be Corporate America that does that. It's typically not your small business, and/or it would be somebody where you're going into a financial arena or something like that. If you're going to be a banker, they want to know that you're handling money right and handling credit right. Some companies use that as an indication of whether you're responsible or not. Obviously, I don't agree with that. I don't pull credit bureaus on people we hire here, and I have 300 folks working for me. Not everyone does this.

If a company is so big that they don't think about anything other than what your FICO score is, then I probably don't want to work at a place like that anyway. A company that bases their hiring on a credit score won't be hiring you. But if they're that stupid, I don't want to work there anyway.

There are so many ways to make a living in this world that I don't have to go to work for some company that has become so corporate and their HR department is so lame that their main hiring tool is a FICO score. If they don't actually interview human beings, assess their talent levels, look at the past work history, work performance, education levels, relational intelligence as proclaimed in an interview—if they don't go through that process to hire, then you don't want to work for them unless you're stupid. You want people to hire you because you're a quality person and can deliver the goods. If you're being hired by some false measure of success, this is not a company worth working for.