The use of credit reports prevents people from getting jobs they are qualified for and "can have a discriminatory impact," Amy Traub, senior policy analyst at Demos, a left-leaning think tank said. "Our research shows credit reports don't provide information that is actually useful for employers, don't show who is going to be a trustworthy or reliable and does not prevent theft or fraud."
The two main reasons employers conduct credit checks on job candidates are to prevent theft and embezzlement, and to reduce legal liability for negligent hiring, according to the Society for Human Resource Management (SHRM).
[...]
