4 Reasons to Restrict Credit Checks in Employment

Credit Checks Don’t Predict Job Performance

Credit reports were designed to predict the likelihood that a consumer would default on a loan, NOT whether they would steal or behave irresponsibly in the workplace. 

One study presented to the American Psychological Association demonstrated that credit history does not correlate with employee performance: "From a practical standpoint, there is no benefit from using credit history to predict employee performance or turnover."

Dianna Johnston, assistant legal counsel to the Equal Employment Opportunity Commission, agrees: "Employers seem to be assuming that somebody with a poor credit history is more likely to steal, and I don't think there's any kind of evidence that supports that."