How Do Credit Checks Affect Job Applications in Accounting and Finance Roles?

Prevalence of Credit Checks in Employee Screening

How prevalent are credit checks for screening new employees? Perhaps this varies between smaller companies, mid-size firms, and Fortune 500 companies. How likely are the results to derail a hiring decision? Are hiring managers notified of these results, or do they remain within the HR function?

For context, I’m an accounting/finance professional with a public accounting background. However, I’ve made some poor financial decisions and have a fair amount of debt, including credit cards and a personal loan. I’m trying to understand what role this plays in a hiring decision and to what degree it might impact my candidacy for new roles. I’m in the US and interested in both accounting roles (controllership) and finance roles (FP&A, Corporate Development, etc.).

Credit checks on job applicants in India

Credit checks on job applicants are unheard of, at least in India. Taking credit or a loan is a personal matter. Why a hiring company should inquire about such personal matters is not understood.

Nevertheless, if there is a default in payment and a bank or financial institution has filed a police complaint or civil suit, then this disclosure must be made. In many organized companies, a declaration regarding involvement in criminal cases is obtained, but that is a separate matter altogether.

Thanks,

Dinesh Divekar