Credit checks for employment

RN1982 · Aug 3, 2008

I know of no hospital in michigan that requires a credit check. Sounds a bit strange.

beachbum3 · Aug 3, 2008

I've read a couple posts saying that a credit check was required as part of the hiring process. I wasn't aware of this and it has me kind of concerned. My husband and I had always had almost perfect credit, until he started a construction business 3 years ago. Since then our credit score has dropped dramatically and is now in or near the "poor" range.
I completely understand background checks, but I was really caught off guard by a credit check being required. How much consideration do employers give this? Could it potentially cost me a job?
Thanks for any help you can give me,
Sara

I wouldn't worry about it.

bill4745, RN · Aug 3, 2008

Some hospitals do this and it could cost you a job. If they didn't use your rating as one of the criteria in the hiring process they would not check it.

BaRNs · Aug 3, 2008

I am well versed on this subject as I was originally a poli-sci major before I chose nursing. Odd I know, but here it goes.

This is going to become more and more common over the next several years. The FCRA (Fair Credit Reporting Act) of Sept. 30 1997 made way for this. Employers only look at this to establish congruency with your application and resume data. They do not use your credit score as a selection factor as this is against the law. Instead they look to see that you lived in the locations you said you worked in on your resume for the time period you said you you did. It is merely a measure to confirm accuracy and truthfulness of application data.

Hope that clears things up for you.

You can eSearch FCRA to find out the details if you are concerned, but take my word, as long as you don't fudge your resumes you have nothing to worry about here.

You should know, however, that EVERY time someone requests your credit score your credit rating drops an average of 1-3 points. So if your credit is marginal you may wish to provide your employer the resume verification they seek by some other means and expressly tell them your reasons why you wish them not to check your score.

:)

RN1982 · Aug 3, 2008

Interesting.

Long Term Care Columnist / Guide · Aug 3, 2008

My current place of employment does credit checks. I was really afraid my history would cost me a great opportunity, but they hired me in spite of it.........guess they decided the fact that I don't handle money well doesn't make me a bad nurse or a terrible person. Don't worry too much about it.

RN1989 · Aug 3, 2008

They also use this to check out people who work with money in facilities. A person with a poor credit score, history of large debt, excessive spending is a greater risk to hire because they may be tempted to embezzle money.

In the case of places in TX, there are companies that do "credit checks" that use the loopholes of the FCRA to blacklist people and report more than just what is on a credit report. Although this is legal in TX to do, most places do not do it because they don't want the hassle of a lawsuit, even with the law on the company's side.

BaRNs · Aug 3, 2008

They also use this to check out people who work with money in facilities. A person with a poor credit score, history of large debt, excessive spending is a greater risk to hire because they may be tempted to embezzle money.
In the case of places in TX, there are companies that do "credit checks" that use the loopholes of the FCRA to blacklist people and report more than just what is on a credit report. Although this is legal in TX to do, most places do not do it because they don't want the hassle of a lawsuit, even with the law on the company's side.

The practice of denying a NURSE a position based on credit score is illegal. The use of the information MUST pertain to the job applied for.

http://www.ftc.gov/os/statutes/031224fcra.pdf

This is the adobe reader full version of the FCRA which you should use in conjunction with your states employment law website to gain a better understanding. Here is the beginning of the section defining legal usages.

" 604. Permissible purposes of consumer reports [15 U.S.C. 1681b]

(a) In general. Subject to subsection ©, any consumer reporting agency may furnish a

consumer report under the following circumstances and no other:

(1) In response to the order of a court having jurisdiction to issue such an order, or a

subpoena issued in connection with proceedings before a Federal grand jury.

(2) In accordance with the written instructions of the consumer to whom it relates.

(3) To a person which it has reason to believe

(A) intends to use the information in connection with a credit transaction

involving the consumer on whom the information is to be furnished and

involving the extension of credit to, or review or collection of an account

of, the consumer; or

(B) intends to use the information for employment purposes; or

insurance involving the consumer; or

(D) intends to use the information in connection with a determination of the

consumer's eligibility for a license or other benefit granted by a

governmental instrumentality required by law to consider an applicant's

financial responsibility or status"

You also need to understand what type of information is on your 'credit' report. Your credit score is the most insignificant bit of information about YOU that can be obtained from this document. Your places of residence, aliases, and work history are far more valuable to anyone not applying for a CPA, accounting, or money handling position. While an employer is nearly guaranteed to account for credit score on hiring practices of Chief Financial Officers for corporations we ARE on a nursing website, so lets not get too finicky about this.

You have NOTHING to worry about. :)

Almost everyone's credit score is total garbage fresh out of school.

:eek:

I am in the process of researching Texas employment laws and will get back to you soon as I can. Navigating these sites is tedious. My own states is bad enough and after 7 years I am only now somewhat familiar with it. So give me some time for a new state! :)

BaRNs · Aug 3, 2008

Some hospitals do this and it could cost you a job. If they didn't use your rating as one of the criteria in the hiring process they would not check it.

I want to be sure that everyone knows this is a complete UNtruth. Like I said in a previous post your credit 'score' is only 3 characters of information on your consumer report. The information your facilty is using is to match up your resume with residential and employment history which are all on your consumer report (aka credit report). I should also add that when you get a standard credit check from say a car dealership, they are limited to the information they need and that you signed consent to give them, aka credit score. That is why they are typically much much shorter than your full consumer report which is what your company is using.

RN1989 · Aug 3, 2008

The company in TX that masquerades as a credit check company does not use the credit score as a means to deny jobs. In TX, it is legal to give out more info than the standard dates of work and eligible for rehire info. Most places will not give out more than this but there is a company in TX that does and puts in info of all kinds with a "credit check" that most people must sign to be able to get a job.

Many places now will not even consider your application if you do not agree to a credit check.

They don't necessarily use the credit score itself, they use it to see where the person has been living, if they've moved frequently, if they have large amts of outstanding debts. This can play into whether they will offer you a job.

Altra, BSN, RN · Aug 4, 2008

Numerous previous threads on this subject.

As BARNs has pointed out, this has become a common part of the hiring practices in many industries, not just healthcare.

I've had a credit check for every job I've applied for since the mid 1990s. It is an inexpensive, convenient way for employers to verify employment & addresses, though this was certainly not the original intention of the 3 major credit reporting agencies.