Credit background reports that are requested by potential employers have become a huge barrier to securing employment in the United States today. There are so many people out of work that the Department of Unemployment Security has to limit monetary benefits to millions of people every day. In the mist of this horrible economy comes; the potential employer seeking candidates with excellent credit ratings.
Job offers are actually being rescinded when the credit background check comes back with a poor credit history. The logic behind this decision is that a bad credit history means that the candidate is irresponsible and possibly dishonest. It is apparent that the state of the economy is not being factored into the decision not to hire based on a poor credit history.
A criminal background check has been a standard criterion of employers for years to reduce the chances of hiring dishonest and unethical employees. The sudden increase in credit background checks is alarming, and appears to treat the unemployed as if they have criminal records. Changes across the country need to occur in the rationality of determining how credit background checks are interpreted and how to use the data more appropriately.
It is difficult for many people in this economy, who have lost their jobs to maintain an excellent credit history. This economy has been compared to the Great Depression in the 1930's. It is amazing that candidates seeking employment are being rejected due to having a poor credit history. Obviously, this is an employer's market, and it is disappointing to see the position a lot of them are taking when it comes to their selection processes. It will be interesting when things get better and jobs are, once again, available to those who need them.
There are many factors to consider with regard to a bad credit report and they don't all lead to irresponsible people.
Here are a few of the possible factors:
Job cuts and lay-offs
People get sick unexpectedly, and have very large medical bills that they cannot pay within a required time period.
A family member dies without burial insurance and leaves outstanding bills.
A two income household cut down to one as a result of a job loss, and all of the bills cannot be covered by the single income.
A child gets hurt in a car accident and a single mom has to quit her job to care for the child.
A flood destroys portions of a home that is in a no-flood zone so there is no flood insurance and no other coverage.
There are certain jobs where it may be appropriate to perform a more involved background check that may include checking credit history. These types of jobs would be in accounting, finance, legal, and higher level security government positions.
In the past, many people who would take opposition to credit background checks would most likely be those who have deliberately neglected their bills. Today, so many people are out of work and are simply unable to make regular bill payments. Should they be penalized for circumstances beyond their control, it doesn't seem realistic.
The laws in a few states have changed when it comes to how credit background checks are handled by employers. These changes will help prospective employment candidates to interviewed and evaluated based on their training, experience, and work history, and not based on their personal credit history.
It has been established by experts in the field that there is no proof that a poor credit history affects an individual's ability to perform their job responsibility. Credit background reports are not a clear determination of why a credit history is poor. These reports do not include information such as identity theft; financial loses that occur through a divorce, and other significant issues that may cause credit problems.
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