Many employers are now checking credit scores of applicants prior to making offers of employment. For many unemployed Americans, this practice is unfair. Consider people who have great credit and payment histories until they lose their jobs. But once their income stops they fall behind on their payments, causing negative marks on their credit report and a reduction in their credit score. This reduction in credit score keeps them from finding future employment which would allow them to pay their bills and improve their credit score. It’s a Catch-22. Unfortunately, these applicants are usually weeded out before making it to the interview process so they don’t get an opportunity to explain their poor credit score.
In some states politicians are taking steps to “prohibit the use of credit information in most employment decisions.” In Tennessee, a bill has been proposed to prohibit consideration of credit score in employment decisions, and Hawaii and Washington already have similar laws in place.
(Source: MSN.com)
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