When an employer refers you to one of these free credit report agencies to obtain a report for their consideration to hire you, is it a sign that they are marketing for those agencies, scam, or is this something that most employers can obtain on their own for a certain hire? I am just skeptical about their motives, and opens up the possibility of identity theft. I also understand many companies need this as the employee will be on a route and handling cash. They need someone trustworthy, but I would think the obligation would fall on the employer when they offer the position, not before.

Any application that redirects you to a credit report site is ALWAYS a SCAM!

So no employer expects credit reports right?

No legitimate employer expects YOU to do it. They will do it themselves, or outsource it.

I thought so, just needed to confirm suspicions Thank you all.

Correct! If any employer needs to really do a credit report, they will have done during the background investigation. You should never fall for those redirects.

What legitimate co. would need a credit report for hiring purposes?

Many corps run credit check on prospective hires But they will never ask you to run your own.

many co's will do a background check which will often include a credit

Don't they need my permission? Who are these companies?

yes, it doesnt happen until after they offer you the job or you are one of the final candidates. You need to provide your permission in writing.

I just think that this is an unnecessary practice. Why would knowing how you pay your bills is relevent to your ability to perform a job.

Well, it's not just your credit generally a backgroug check will also reveal any criminal issues. Check your education, allow an employer to verify your resume/application etc. All in all it gives the employer more data about you as a person and helps them to choose the best candidate. Stictly speaking to credit, a higher credit score generally correlates to how resposnible you are as a person.

really broad generalization "Stictly speaking to credit, a higher credit score generally correlates to how resposnible you are as a person." So, if someone were laid off from a job as part of a business decision at the CEO-level of an operation, and they fell behind on something like a Penney's card, but not a mortgage or utilities, and that ended up lowering a credit score, that person is now going to have to suffer not being able to land a job because they're judged as incompetent or irresponsible? Seems to me, that being able to navigate harsh economic times and being able to prioritize one's extremely limited resources in order to survive should get a person extra points! It takes cunning and fast thinking; good traits in the workplace.

the scenario you propose doesnt do much to your credit. They don't care that your score is 660, 680, 700 or 720. All are proly fine. They are looking for patterns. Many cards past due or in collections. Years of charge-offs etc. Also, part of having good credit is planning. Having an emergency fund for lay-offs or not having debt in the first place which becomes impossible to manage with no income. These things all speak volumes as to how you manage yourself.

Dems is da breaks............................... Sure, a lot of people are going to have lower FICO scores, but a credit report shows more than that.

Irresponsible behavior They are usually looking for patterns of irresponsible behavior, not any specific credit score. If you have a history of maxing out and then defaulting on credit cards, for instance, it's an indicator that you behave irresponsibly, and probably shouldn't be in a position where you would manage money or people.

I get it. Thx. It's not so much that "life happens to you", it's how you handle it. Working a problem to a solution is better than just walking away from a mess made out of bad habits.

It's a tie-breaker They have one position and several sufficiently qualified candidates. How do they pick just one? By the size of their boobs? By the color of their skin? All that's been made illegal, so they go by your credit report. And there is some evidence that someone with bad credit might just wind up being a bad hire.

Do you believe that? Sounds a bit unethical. Personally I will (and have) allowed for a criminal background check but I may have to draw the line at the credit check, and I have perfect credit. JMHO

then you are greatly limiting yoru employment opportunities.

Think about it, If there was a reasonably decent applicant who had on-going bounced checks and is behind in some/most of their payments, they are considered to be likely to steal from the company or become entangled with financial/legal problems causing loss of work time or productivity. There have been studies on this subject.

But.... What kind of company would look at this information? I found this information online

The banking and securities industries

Any company that deals with an individuals personal information or has access to a persons private possessions. One example, the apartment industry has files of sensitive personal info, has access to people private residence. Any employee that works there has access to that and more. Now, would you want a maintenance guy working in your apartment if he had bounced a bunch of checks, was up to his adams apple in debt? What about the leasing consultant that has maxed out her credit card and has no way to pay for something? Should I continue?

its more than that but I think what needs to be kept in mind is its not just credit. It the overall picture (criminal, DMV, credit, social trace). It is becoming more and more common for any type of corporate job.