4 Reasons Employers Pull Credit Reports

Gauge Responsibility.  Employers want to know if you are responsible, and one of the best ways to determine this is to run a credit check. This shows them your spending habits, your ability to pay back debt and your collection history.

Identity Verification.  In this new age of identity theft, employers must be very careful about who and how they hire. Running a credit check gives an employer an alternate means to verify a prospective employee’s identity, which is a plus for both the company and the employee.

Employment History Verification.  Another reason why prospective employers may run credit checks is to verify previous employment. Since an employee can write whatever he or she wants on a resume or application, many employers are careful about believing what's been written down.

Identify Candidates for Theft.  Although this is often considered discriminatory, employers often run credit checks to assess whether or not an employees is a likely candidate for workplace theft. If you have lots of unpaid debt and if you are harassed on a daily basis by creditors, an employer may feel that you would be more likely to steal from them.