The Controversy Over Credit Checks in Selection

Abstract

The proportion of U.S. employers who consider applicants’ credit reports has increased sharply over the past decade, precipitating controversy and legislative efforts to restrict this practice. Credit checks differ in many ways from commonly studied selection tests, and little is known about how they are perceived. Here an analysis of almost 1,500 online responses to four different media reports reveals the complexity of issues underlying attitudes toward credit checks. Findings demonstrate the utility of a novel methodological approach for exploring the opinions and experiences of a broad sample of people with a variety of perspectives on a poorly understood hiring practice. Discourse reflected some established themes in applicant reactions theory and also concerns about broader societal consequences. Underlying divergent attitudes toward credit checks were sharp disagreements about individual control and about how employers actually implement credit checks and evaluate reports. Implications for expanding theory and informing public debate are discussed.