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Welcome back everybody do you pay your bills on time.
Maybe get a little harassment at home if you don't but you might also not get the job you're looking for.
That's according to doctor -- who's joining me now doctor Michael Woodard who helps people get back to work keep their jobs stay happy.
Smile on the job and all the above I know that's what I so employers are allowed.
To look at your credit score credit report I know sometimes on an application for -- job they'll have you sign that that's okay legally they can do it.
Right not everywhere -- -- -- there is legislation out there that are trying to block to some extent but.
Here's the thing itself can you put this up as the question of the day and be curious to find out how people are really saying I have foxnews.com for that and a recent study in the journal applied psychology actually examine this concern over this issue using credit reports.
Or credit scores in the screening and hiring of employees and how you look at candidates.
Now what what does it tell an employer and yet paycheck I'm just checking to see what people have to say about this and -- are seeing right because they think there are submits there are some ideas of what we believe it tells employers -- what it actually tells employers.
-- for the most part the -- and or the evidence has been somewhat anecdotal.
So that's why this study actually decided let's take a look and see what these.
Credit scores and these reports actually talent so what they did particularly.
And it was a study out of Louisiana state university and I interviewed -- Whitman one of the professors who is investigator on this.
What -- looked out was the relationship between -- -- credit score.
And personality which is -- when we can talk about that they also looked at it in relation to task performance on the job ends.
Whether it's related to theft or counterproductive behaviors that.
Which is the rationale that the credit companies like to use as well as employers like to use for why.
They think it's important to get ahold of these reports.
So -- -- -- -- some of these find ways to have fairly full screen to them what to do personally I think it's kind of interesting is.
It's a little bit less relevant to the whole idea of we shouldn't be -- or not but did the notion that.
The personality factor of agreeable -- this is actually related to your score so those who are more agreeable.
There's less or more likely to say yes and more pleasant more wanting to get along agreeable to -- Did you think agreeable and generals are well -- -- -- was more -- say -- more likely to be -- going they have lower scores typically.
So in other words why is that doesn't I mean what lower scores and what they wouldn't pay their bills we hear it here's what would -- remember it's not just about paying bills so.
People were more agreeable will tend to say -- -- this credit card offers at the store.
From the more those are the net search for schoolwork sure they'll be more likely to say yes -- that family member who wants him to cosigned on the loan.
Which again old seeing you -- your score OK so.
They did the moral of the story there is that is unpleasant contrary -- among us are the ones that the higher scores at the end of the day because saying no was not a bad thing.
A little bit of that selfishness can be good when it comes it did -- you know how that relates okay of course.
Now getting back into whether employers should be using this or not so it's a mixed bag here the first finding was that.
Credit score didn't relate to task performance on the job in other words they found that higher scores.
-- correlated with higher ratings of task performance by supervisors on the job.
So that sounded -- seen it sounds like rationale will look this this could be -- -- assessing who's a good performer.
At the end of the day.
Any type of the sense that you use to try to determine.
A potential candidates ability to perform the job needs to be job relevant.
So any time I'm advising a client or working with the client on developing -- hiring your selection system.
The first question we -- ask is how is is actually relevant to the job lots of things can be correlated to each other for lots of reasons we don't necessarily know the why behind them.
The argument they like to make as well there is some job relevance while the third finding -- study is this.
There is absolutely no relationship.
According to the study between.
Credit score and counterproductive behaviors or -- That is the primary reason what's the theft element that if you have a low credit score you might be tempted to take stuff that's -- -- yeah.
And and that's the argument that companies will make -- its arguments -- these credit reporting companies like to make is say look as a way to assess integrity.
The fact is there's so many factors that go into.
Goodness you could have suffered you know some sort of health issue that bankruptcy junior couldn't pay your bills does that count what'd you bring that up -- implore you go look.
I will agree to let you look at my credit score but let me explain the slanderous absolutely I think he should not a lot of I think he should be allowed to explain it but first of all I think there's a danger in just using.
These credit reports overall because you have to be careful as to what they really say because you do not have control.
Over the majority.
Of stuff that goes into that.
They're not always right yeah I -- -- right Aptiva home yes once a year are you are entitled innocent rocketry to get a free credit report right.
And there -- web sites that will charge you to access your -- -- You don't have to pay if you put in free credit report -- to any search engine.
And find the one it doesn't charge you can get it on the spot right and you should check it once a year because often there are things reported -- someone else's credit may have spilled over you may have had a change -- Marriage or divorce or whatever -- paid off a big loan.
He got to keep your current actually in you know it.
In this it was for.
The use of credit reports especially right now we've got.
One in two recent college grads.
Who either unemployed or underemployed.
They're also coming -- with a high debt load and potential credit trouble.
So devastating as those that we would increase that number immediately want to meet and make it may get a kids' -- eligible to get jobs in -- tough economy like this.
The evidence really isn't there that these reports are really getting.
Good way to screen out so they want you to tell employers out there whether or not -- -- really useful tool.
Yeah all I can say is according to this study this particular study because there.
There really isn't much -- out -- research wise looking at this it's always been very anecdotal.
So I think this is a good its first.
Particularly these researchers and I applaud them for taking this first step.
But according to this I think employers out there you need to be careful in what you use when you screen -- -- are -- better screening.
-- -- -- -- I contact they have -- that the.
That interview with determining basically so it's agreeable by having a conversation -- you know and what I've developed a hiring process for -- for companies and you know look at a number of things first we look at.
Personality assessment certain types of personalities.
Mean make for better.
Employees and certain types of circumstances I think it's very much yet depends on the circumstance -- structured behavioral interviews so interviews that look at.
Particular behaviors that make sense.
On the job for whatever -- job for whatever it is and let's face it past behavior is the best predictor of future behavior we are creatures of pattern.
We tend to stay in patterns we tend to repeat those patterns so we want to explore what this past patterns are.
And understand if -- will continue in the future and how will play out in that particular job.
Certainly his skills tests and when it makes sense right you know I hate to say of course one of the best predictors of of performance overall is typically intelligence.
Across the board.
Okay we can pick that up an interview I have to leave it there but -- should check out your article at foxbusiness.com.
For more on this.
What employers are looking for what you need to know.
Good advice today doctor -- that if you have an issue that has -- cracked affected your credit report or anything else that may come up an interview.
In this few words as possible I would advise you as the attorney in the room you have to.
Come come clean just give it to me straight tellem have you changed -- why you think you're perfect for the job right doctor would --
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