It is a “myth” that employers are trying to use credit reports to deny employment, attorney and management consultant Lester Rosen says.

In a recent article for Kennedy Information Recruiting Trends, exploring the myths and facts of using credit reports in background checking, Rosen says: “An employer does not invest money in a background report just to find ways not to hire. When an employer initiates a background check, it is especially because they are interested in hiring the applicant and they are conducting due diligence to make sure there is no reason not to hire.”

Rosen also says that it is an “urban myth” that employers receive credit scores of applicants and that applicants are losing job opportunities because of their credit score. “Employment credit reports simply do not contain a credit score since there is no evidence of a connection between a credit score and employment,” Rosen says.

However, a best practice for employers is to approach using credit reports “with caution when it comes to background checking, he says, due to potential discrimination issues and whether the report is a “valid predictor” of future performance. Employers should “articulate a clear rationale as to why a credit report is related to a particular job. Employers should also be aware that at times, the information in a credit report needs to be examined and evaluated more closely,” he says.