Credit Checks For Security

In 2008 when the economy took a nose dive into the great recession as I call it many investigations were done into bank employees who were using their loan officer positions at banks to help bail out friends and families but loaning them money under false pretenses and committing fraud. Part of the entire financial crisis of 2008 was due to people getting mortgages on homes they could not afford or taking out loans on homes that were not worth the value they got in cash.

There is an old saying that money is the root of all evil and it can be in some cases. We live in a world where credit and money are needed to live and the way people handle money can be important to know.

I personally think anyone who works with money from a bank teller to the bank president should have a mandated credit check. This does not just go for banks this applies to anyone in any company who has access to company funds.

Employers are increasingly running credit checks on job applicants and using that information to make hiring decisions. If someone is being hired for jobs that deal with money or especially if they are in any position to be able to disperse funds they should need to agree to a credit check.

Companies like Nerdwallett, for example, give potential employers or businesses modified credit reports showing debt and payment history. This is great because getting your credit pulled can actually lower your credit score so a modified report does not show the credit score because it’s not running your credit just showing your payment history and debt to income situation.

I would like to say people with bad credit or no credit are not bad people but seeing someone’s financial information can tell you something about them.

Lots of late payments could indicate you’re not very organized and responsible, or don’t live up to agreements.

Using lots of available credit or having excessive debt are markers of financial distress, which may be viewed as increasing the likelihood of theft or fraud.

Any evidence of mishandling your own finances could indicate a poor fit for a job that involves being responsible for company money or consumer information

Like I said not everyone with bad credit is an issue but it can give a company a better understanding of you as a person. Sometimes people might have bad credit due to a divorce or bankruptcy in that case the people took care of their issue and are recovering their credit and may be a good fit everyone’s situation is different.

Remember credit checks are important as handing company funds is a sensitive thing and needs to be done by people you can trust a credit check is important I have seen to many times where a simple credit check could have really saved a company’s issues.