Credit checks and employment

BuckyBadgerRN, ASN, RN · Jul 23, 2011

I have never heard of a place checking your credit for a nursing position; in fact I believe it is illegal to even look into that. I think if they didn't hire you because of bad credit wouldn't that be discrimination. When they do a background check they are looking for criminal activity, arrests, jail time, etc:)[/quote']
Um, what makes you think that a credit check is illegal? It is a very common practice. Nurses don't just divert drugs for personal use, selling them can be profitable. If a credit check reveals that I don't/can't pay my bills, I can see where HR has to stop and think about how trustworthy I am in other areas....

Altra, BSN, RN · Jul 23, 2011

I have never heard of a place checking your credit for a nursing position; in fact I believe it is illegal to even look into that. I think if they didn't hire you because of bad credit wouldn't that be discrimination. When they do a background check they are looking for criminal activity, arrests, jail time, etc:)[/quote']
Post #3 provides a relevant example of how employers use credit checks as part of background checks on potential new hires.
Credit checks are an easy, inexpensive method of helping to verify information provided on employment applications: addresses, previous employers, etc.
If you're not familiar with all the information contained in a credit report, you might consider requesting your own from one or more of the 3 major credit reporting agencies. It's free.
I've had a credit check done as part of an overall background check for every job I've had, in health care and in other industries, since the late 1980s.

Jmiami · Mar 14, 2012

Right, but not every poor credit score is because of irresponsibility like PP said. It could be due to illness resulting in job loss that resulted in nonpayment of bills for example. Does that make one untrustworthy? No, it makes you sick. It could be due to identity theft that is in the process of being resolved. It could be due to college credit card mistakes. People in the med field especially should understand this one and the neurological processes regarding impulse control and reasoning that coincide with aging. Credit checks, fine. Look at the history of the credit. Is this poor score a collaborative result of multiple collections during one specific point in time (ie: they all hit in March of 2007 or somewhere around there). Are there any collections, defaults or judgements before this point in time? Are there any collections, defaults or judgements after this point in time? No, you don't see any? Well it could probably be logically concluded that this person is not a reckless, irresponsible person by nature. This person most likely ran into a rough patch outside of their control that caused them to be unable to pay their bills for a period of time like they have their entire lives before and after this isolated episode. Now THAT would be an intelligent way to check a credit report.

Altra, BSN, RN · Mar 14, 2012

It could be due to college credit card mistakes. People in the med field especially should understand this one and the neurological processes regarding impulse control and reasoning that coincide with aging.

OK, I've now had my giggle to start my day.

So, living beyond your means and miscalculating or ignoring your responsibility to pay ... is ok in college ... because you can't be expected to have any impulse control?

Jmiami · Mar 16, 2012

No, I'm not saying that it's a get out of jail free card if you are someone who is in cc debt because of poor decisions made when you were much much younger. However, many people mature after age 18, 19, 20 etc. and are more capable of getting it through their head that the little piece of plastic in their hand carries major consequences. CC companies have many marketing campaigns targeted to college kids because they are aware that this might be the case. Many people that young make mistakes that they wouldn't necessarily make again as they get older. Staying out all night partying, unprotected sex, drug use, blowing off class. Note that these are some pretty general examples of poor choices that young people MAY make while in college. I'm not saying all young adults make these choices. There are many who have the maturity to realize what they are getting into when they use that card. Granted, I'm no where near an expert of development or neuroscience, but I'm pretty sure that there are a higher majority of people in their mid/late twenties, thirties etc. who have a greater ability to step back and weigh the consequences of their choices before making one.

Altra, BSN, RN · Mar 16, 2012

I'm pretty sure that there are a higher majority of people in their mid/late twenties, thirties etc. who have a greater ability to step back and weigh the consequences of their choices before making one.

I agree with you on that point, but it has zero to do with responsibility for or consequences of such poor decisions.

And BTW, I only agree with this to a certain extent. Previous generations managed to marry young, hold jobs and manage households and children much younger. There is no neuro-biological reason that young people today could not do the same -- it's our cultural expectations that have changed.

Jmiami · Mar 16, 2012

exactly, I agree. zero to do with actual responsibility or real consequences. Great point raised about previous generations as well. I do wonder why it is that previous generations married right out of high school and had 2.5 kids, a white picket fence, a steady job not to mention the financial stability to be able to usually have the mother/wife stay at home to raise the kids and tend to the house hold responsibilities. Quite a difference in maturity compared to 18 year olds in 2012. Our cultural expectations really have changed significantly. I would be very interested to look more into the factors that contribute to this difference. It is fascinating!

brandy1017, ASN, RN · Mar 16, 2012

A lot of companies are doing credit checks on new hires. In fact on a recent Suze Orman a woman hired for a company was given an ultimatim to have her credit card debt paid for by a certain date (can't remember 1-2years) as a condition of continued employment! Wow! Like wow! Who are they to dictate how you spend your money! It's crazy what this world is coming to!

It's common practice now for the hospitals to check patient's credit so I suspect they do likewise with job applicants. They tell the patient to hold while they check for an appointment, but instead are running a credit check to determine the likelihood of them being paying customers! LOL, haha.

They can discriminate based on credit checks if they want to. So far no law has been passed to stop them. They can refuse to hire you if your a smoker and they can refuse to hire you if they don't like the way you look, of course they won't say that to your face!

amysmiths · Jul 1, 2013

Many job seekers worry about job credit checks, where a potential employer pulls a credit history before making a hiring choice. Some people are fearful it means they won't get employed and while a legitimate concern, it isn't always the case.

KATRN78 · Jul 1, 2013

My uncle works in nuclear power plants. He said you have to have perfect credit, its checked often. He told me that the reason is because people with poor credit are more likely to commit crimes and take bribes. They are a higher security risk.

So why do nursing employers do it? Does the local children's hospital here have concerns that nurses might sell babies, drugs or?

llg, PhD, RN · Jul 1, 2013

1. It's an easy way to verify previous addresses, employers, etc. They don't want to hire people who lie about such things.

2. Some problems that might show up on a credit check are "red flags" -- to yes, the increased risk of drug use/sale ... employee theft ... etc. (Not guarantees that the applicant will do these things, but red flags that the applicant might not exercise good judgment and/or have engaged in questionable business dealings in the past.)

3. They need to be sure that you are not concealing a court-ordered "garnishment-of-wages" for a debt. A person in that situation might get a new job and not tell the new employer as a way of avoiding paying it. The employer does not want to be complicit in that deceit (which is illegal).

4. The process of court-ordered wage garnishment is cumbersome for the employer -- and they don't want to hire people who are likely to place that added burden upon them.

richardgecko · Jul 1, 2013

This worries me a lot. I have less than perfect credit. My mom cut me off of her insurance at age 18 and shortly after I began having seizures. That resulted in a lot of visits to the ER until I was diagnosed with epilepsy. I wasn't in the position to pay it and now I'm 5k in debt. I just did a credit check on myself a week ago and the only items I have in collections are my medical bills. My credit card is paid up and current. Would this exclude me from a job opportunity?