Employers doing credit checks?
 

Do employers do credit checks on potential employees? :confused:

Yep. A lot do.

https://creditcards.usnews.com/artic...ck-your-credit

Excerpt:

“Foreclosures, multiple bank account closings or liens against the job candidate could be interpreted as signs of irresponsibility and negligence.” (Getty Images)
It’s the big day – you dress to impress, print extra copies of your resume and don a winning smile. Unfortunately, you might be destined to fail before you ever walk into that job interview, despite your rock-solid qualifications.

A recent survey by CareerBuilder found that 72 percent of employers conduct background checks on prospective employees and include a credit check in 29 percent of cases. That means if you have a dark financial past, it could come back to haunt you during the job application process.

What Are Employers Looking for in Your Credit Report?

Just as lenders review your credit report in order to glean some idea of how you will behave as a borrower, employers also review credit reports of prospective employees.

Credit reports, which detail your history of borrowing and paying back money, can shed some light on how you will perform as an employee. At least, that’s what many employers believe.
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Some states that isn’t allowed, and they must tell you (theoretically at least) if they do use the info in a hiring decision.

Hmmmm... what about those of us with massive amounts of training debt and thus haven't been able to pay the bills? :confused:

The employer's question is valid: can this applicant live on what we pay? Is this applicant financially responsible? Does this applicant live up to his or her obligations?

Credit isn't just a score; it's your financial history. Have you defaulted on payments? If you default on payments, it may alert the employer to the integrity of the applicant. Will the applicant take the training and run?

If your saying that you have a lot of debt from training, that's ok.

If you have defaulted, that's a different story.

Assume most majors will run a credit check, and they will probably have some threshold. I'm guessing a recent BK is no go.

Some majors may be located in states which have laws limiting the use of credit info in hiring, might look into that.

The good news is that to my knowledge, credit ratings can improve over time and I don't think they can easily reference your old credit history from the past (unlike criminal records). So time and sustained financial responsibility might be the fix.

What about the regionals?

I'll be fine once I get to the regionals, but I have defaulted because I haven't been able to pay the bills working the low end jobs.

I doubt most regionals even bother to look, although not sure about AA WO's.

But like I said, time is probably the answer, if you're not at the regionals yet you have some time to fix the credit history.

Probably should research how long things stay on your record (7 years?), and which majors do, or don't do credit checks.

Most regionals don’t pull credit reports, but the AA WOs and endeavor might. I don’t remember Southwest pulling my credit. I have a credit monitoring service, and it didn’t show up as a pull. Regardless credit is a easy fix. I wouldn’t wait for the 7 years personally. If you ever plan on going into the military, they will definitely pull your credit.


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Re.those regionals, they don’t.

I can’t imagine any regional can afford to turn away a qualified pilot because of poor credit. Wasn’t sure though, because of the flow.

Southwest definitely includes credit as part of the background check. The company that does the check runs the report (Google sterling). They only see payment history and not the actual credit score. I’m pretty sure most legacies will check this as well. If you’re continually late on your bills, then it could show a lack of responsibility to the company. I don’t think regionals care though.

They don’t even see the score. The report shows payment history, which could be used to determine if the applicant has integrity issues or a lack of responsibility. Probably not a deal breaker, but I think habitual financial issues could be a red flag.

Only airlines are allowed to file for bankruptcy. Not pilots.

That must be recent change, because they didn’t pull mine last year. At least it doesn’t show up as a hard pull on my credit report. I highly doubt you wouldn’t get hired at SW because of your credit. Sounds like something Delta would do though.

Employment screens show up as a soft inquiry and usually would show up as a third party. If you see a soft inquiry during the relevant time that you don't recognize, that could have been the pull. I have only seen an employment related pull after I was hired during the background check. Definitely have read in news articles that more and more employers are using the credit report in hiring decisions though. Would be interested in hearing anyone's anecdotes..

Mine was pulled after I was offered the job as well, and it wasn’t the CJO it was the literal call from the CP. believe they have to be careful with how they conduct the background check. I don’t have perfect credit and didn’t hear anything about it. I guess it would be weird for them to call me after offering me the job, and then ask about my credit. This was was early 2018 though, so I have no idea what they currently do.


But I believe at certain legacies they pull credit as part of the background check, and they will inquire about it.


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Any decent employer in almost any industry with high pay and responsibility is going to run a credit check as part of the hiring process. It’s one of the best indicators of how a applicant might work out. It won’t be a deciding factor but it will carry a lot of weight. It’s also being factored into many other areas including what you pay for home and auto insurance. All the majors pull some form of credit check.

My credit is frozen because my ID was stolen in late 2016. Don't need credit (other than a couple of rewards credit cards I've had a long time) so haven't unfrozen it. I wonder what an airline would do in that case? Force you to unfreeze so they can check it? I can pull up my FICO score on my Capital One App, the score is very good. But it's a PITA to unfreeze the credit, especially with Equifax, they want 2 notarized letters (most incompetent company I've ever dealt with).

The place I work at now outsources background checks to a third party. They require you to unfreeze your credit report to complete the BC.


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Also it’s not just your payment history they look at on your credit report. Other items like, address history or names are probably also looked at.