Haven’t you wondered why employers often stake their decision whether to employ you on your credit? Think about it employers, if we don’t get the job, doesn’t that make us less likely to pay the bill? You would think that they would want to help out if they look up our credit score and find that we have a few financial indiscretions.
Well, now it’s being reported by creditcards.com, that a Congressional committee is finally building legislation to ban the use of credit checks in the hiring process. A couple states have already banned the use of credit checks. But, if the committee is successful, it will be reviewed and hopefully implemented for the nation.
The other harsh side of these employer based credit checks is that this practice is not just for those potential employers working with money, finance or other people’s property it has branched over into every area. The report stated that “These days, 43 percent of companies conducting any type of pre-employment screening use credit checks for some or all employees, according to a 2006 study by the Society of Human Resource Management.
The reason congress may get involved on a wider scale is due to the recession and Wall Street’s nose dive. They don’t want to see people get caught in a catch 22 of never turning the unemployment numbers around.
Read here for more info on what they’re doing to make sure you get the job.