Definition
An employer inquiry is a request for a credit report by an employer as a condition of employment.
Analysis
Many employers require credit checks in order to evaluate the financial responsibility of job applicants. Signs of poor credit management or irresponsible financial management can be signs of poor job performance.
Employers often equate personal responsibility with dependability on the job. Therefore, an employer may require that an applicant possess a credit score above a certain minimum threshold as a condition of employment.
This inquiry is normally initiated only once by an employer at the time of hire. However, some employers may require a subsequent credit check as a condition for a promotion, or for access to sensitive company materials.
The U.S. military requires a certain level of financial responsibility in order for servicemembers to be eligible for deployment. This is intentional to prevent temptations of bribery or even treason. A credit check is required as a matter of granting security clearance to a servicemember.
An employer inquiry is a soft inquiry that has no bearing on a credit score. It is recorded on the credit report at the time of the credit check and is grouped with other soft inquiries.
