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Bad Credit Reports Ruining Employment Opportunities

By Faye Mergel
Published: Wednesday, March 17th, 2010

It seems that Americans having a hard time landing a good job may have more trouble coming. According to some experts, a lot of employers are now looking at the credit reports of their applicants to decide whether they are going to accept them or not.

Bad Credit Reports Ruining Employment OpportunitiesThe economic crisis put a lot of burden on many American consumers. Thousands of American consumers found themselves in a bad way financially due to the effects of the economic downturn. The problem was further exacerbated by the rise of the unemployment rate throughout the nation. Unemployed and already suffering from the effects of a bad economy, it is quite easy to see why many Americans are now dealing with bad credit standings.

For unemployed Americans, a major necessity in recovering financially is to find reliable and lucrative job. Unfortunately, there are relatively too few jobs on the market nowadays and too many job applicants. Employers can now take their pick of employees and are employing any number of filtering methods to filter out job applicants. One particular filter which is going to give a lot of job seekers a huge problem is credit report checks.

Companies are now beginning to use credit report checks as a way to filter out what they deem to be bad employees. Thus, Americans looking to find a job to recover financially and help their credit standing get better are losing the opportunity to do so because of their bad credit standing. The situation is a worrying downward spiral for job seekers.

To be clear, employers do have the right to run credit report checks on any potential employee. However, they can only use credit report checks as a filter for employee hiring if the position involved carries financial responsibilities. This rule is stated in the Fair Credit Reporting Act. A lot of companies are, however, not following the rules stated in the act.

The best thing that a job seeker can do, considering the situation, is to procure a copy of their credit report first before they actually send in their applications to whatever company they want to join. Although this will not prevent the company from running a credit report check on him or her, at the very least he or she will know what the company will be seeing in his or her credit report. Forewarned, he or she can, if given the opportunity, then explain the situation to the prospective employer and tell them what steps he or she is taking to correct the problem.

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