What Happens if an Applicant’s Credit Report is Bad?

What Happens if an Applicant’s Credit Report is Bad?

You really like John.  He’s been through three interviews, including an all-day one with the board members.  Everyone finds him to be the perfect candidate for the VP of Finance position.  But when you perform a comprehensive background check on him, you discover that his credit is terrible.  In fact, he’s been having problems for many years.

Now, the real test comes into play… should you hire him or not?

This is a scenario that plays out again and again in the corporate arena, especially because of the difficult economic conditions we’ve recently experienced in the United States.  And hiring managers everywhere are asking themselves the very pinpointed question:  “Should I take the chance?”

In the case of John, a VP of Finance with a bad financial history could be a huge problem.  However if you like him enough, you might want to offer him the opportunity to explain his poor credit history to you.  After all, you could discover that he has an explanation that is sound and reasonable.  (For instance, a medical emergency that his wife experienced which they paid for out-of-pocket.)

However, there is nothing wrong with protecting your corporate interests and letting an applicant go.  If you don’t think the background check is indicative of your ideal employee, it’s best to say goodbye than wait and wonder if you’ve made the correct decision.

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