I was a bit surprised when a friend told me that companies routinely check your credit history when you apply for a job and are a promising candidate. That’s a new a wrinkle to me, but I’ve been self-employed for years. Why would a low credit rating be relevant to a potential employer? I’m a bit baffled by it, especially in this economy with unemployment so high. Many people have lost their homes to foreclosure or had to file bankruptcy do to job loss, high medical bills, etc. To me, it has a very strong “blame the victim” feel to it – to get that bad credit history; you must have done something shady or used incredibly poor judgment in managing your finances. In many cases, that’s unfair thinking.
How is it Applicable?
I suppose if you were job hunting in the financial sector, in a position of high responsibility, your credit score or bad history could be a red flag. It might suggest that you aren’t very good at handling money or maybe even untrustworthy. But that seems like a big jump. Background checks for criminal aspects would make sense in these situations and many others, like teaching or childcare, etc.
States are Banning Credit Checks
In a move that is more favorable to job applicants with money problems, California just this month became the seventh state to ban credit checks on many applicants. 19 more states have similar bills pending. That approach seems more humane. Since a couple late or missed payments can harpoon your credit rating, you shouldn’t have to worry about that while trying desperately to find a job. In the states that have passed this law, employers are still permitted to check the credit reports for some jobs like bankers or law-enforcement.
Work on Your Rating
Even with this encouraging change, it’s still important to do whatever is within your control to keep or repair your credit rating. If you haven’t, take advantage of getting your yearly credit reports from the three big rating companies. When you get them, check them carefully for errors. If you find mistakes, be sure to contact the companies.
Written by regular Jobacle contributor Nancy LaFever. Find more of her critical thinking on her blog, where she overanalyzes the bizarre grocery shopping lists of the single demographic.
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