Should Employers Use Credit Scores to Hire Employees?

By | Apr 23, 2012

Should Employers Use Credit Scores to Hire Employees?
News from Fox Business:

Oh, the dreaded credit score.

These three numbers play an integral role in our personal and financial lives. It’s not enough that we have to keep up with three different versions that never seem to quite agree, but nowadays we must also be ready to defend our scores during a job interview.   

The use of credit scores in applicant screening is fairly common practice in this country. According to the Society for Human Resource Management, 60% of employers check applicants’ credit scores for at least some of their job candidates as part of their hiring process. Naturally, this begs the question, what do credit scores really tell us?

Not what we may think, according Daniel Whitman, assistant professor at the Rucks Department of Management, Louisiana State University. In a recent study published in the Journal of Applied Psychology, Whitman and his coauthors uncovered some interesting relationships between credit score, personality and performance.   

Being too agreeable will get you in trouble. One of the most interesting findings of the study is that an individual’s level of agreeableness correlates with their credit score. The study finds that the more disagreeable a person is, the higher the credit score. That’s right, those unpleasant contrarians among us have an edge when it comes to securing high credit scores. continues on Fox Business

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Related News:

Are credit scores rising?
News from MSN Money:

This post comes from Gerri Detweiler at partner site Credit.com.

A recent FICO survey finds that lenders are predicting fewer delinquencies on mortgages, small-business loans, auto loans and credit cards. If those predictions prove to be accurate, then consumers’ credit scores may also continue to improve.

The survey, conducted for FICO by the Professional Risk Managers’ International Association, found fewer lenders expecting a rise in delinquencies on

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Liz Weston on Personal Finance: “Your Credit Score” and “Easy Money” (Collection)


A brand new collection of insights for building and safeguarding your personal financial security, from best-selling author Liz Weston…now in a convenient e-format, at a great price!In 2 extraordinary eBooks, top financial columnist Liz Weston helps you build your credit score — and your entire financial future!Millions of people now turn to Liz Weston for plain-English, common sense advice on building wealth and financial security – in fact, she’s now the Internet’s most read financial columnist! Now, in two remarkable eBooks, Weston delivers indispensable up-to-the-minute guidance for maximizing your all important credit score, simplifying your finances, and getting what you want out of life! In Your Credit Score, Fourth Edition, Weston reveals crucial new information about protecting (or rebuilding) the three digit number that’s now being used by everyone from lenders to potential employers, insurers to cellphone carriers. Weston thoroughly covers new credit laws … explains the new “FAKO” alternative scores… offers up-to-the-minute coverage of short sales, foreclosures, and the FICO 8 Mortgage Score … helps you protect yourself against new credit risks, fight lower limits and higher rates, rebound from bad credit, and choose credit “solutions” that help, not hurt! Next, in Easy Money, Weston offers a practical, easy-to-understand guide to taking control of all your personal finances – for the rest of your life! You’ll walk through all the fundamentals, from investing to retirement and college planning… discover new ways to control your spending and reduce your financial services costs… learn how to get the most out of your credit cards… even learn what to do if you’ve overspent on your most recent car purchase! Packed with checklists and charts, this easy-to-use book puts you back in charge of your money, where you belong!From world-renowned personal finance journalist and columnistLiz Weston
List Price:
Price: 15.49

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