Understanding Applicant Reactions to Credit Checks : Uncertainty, Information Effects and Individual Differences

Credit checks are an increasingly common selection procedure for American jobs, and they are distinct in a number of ways from the selection tests typically studied by researchers. With a credit check, applicants do not actually take a test or answer questions, and most will be uncertain about what information a credit report contains, why one is being requested, and how it will be evaluated. In two experiments we assess the effects of explanations and individual differences. Experiment 1 used a sample of 408 undergraduate business students to examine reaction dimensions relevant to credit checks, and found perceptions to be mainly negative. The type of explanation read, however, interacted with perceived credit report impact to influence reactions. Results of Experiment 2, with a sample of students from a more non-traditional population, were similar, but age was associated with greater skepticism of credit report accuracy. Privacy perceptions were the strongest predictor of intention to withdraw from the selection process