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Unfair To Judge Job Applicants On Their Credit Histories!

By Faye Mergel
Published: Sunday, May 23rd, 2010

PIXTAL-00036137-001A lot of employers these days check credit histories of applicants who are searching for a job as they feel their character is revealed in these reports.

A study shown by them said that businesses in America lose 30 billion dollars to employees who steal. The managers in charge of hiring insist on taking a look at their credit histories along with background checks for any criminal history. This they claim helps them find the right employee.

The problem lies here, where there is no proof that people who have poor credit histories end up as bad employees or as those who steal from their bosses.

Transunion credit agency’s Eric Roseburg says that there is no research that actually shows any statistical co-relation between what is in a person’s credit history and his performance in his job. Eric Rosenberg admitted this statement to the legislators of Oregon.

But Transunion defends itself in its drive to make money on the credit report by stating that if the credit scores are not checked, businesses are at risk. Their response to that was’ what is Bernie Madoff’s credit score?’

Adding to the already painful economy are the employers checking those people who are in desperate need for a job. With a large number of people applying for a job, companies pick their employees and almost 43% of the employers in the U.S say that they check credit histories.

It is not fair to deny giving a job to somebody just because he or she has a poor credit history especially in this difficult economy.

One of the 16 states that are proposing a legislation to ban credit checks is New Jersey except those jobs that involve responsibilities of finance. Congress has also stalled such a bill.

The people favoring credit checks say that from credit checks they could indicate problems like gambling or drug addiction. But this might also mean that the person has been struggling to pay off his bill ever since he was laid off and that he really needs a job.

At the end of it, the people who actually need a job wouldn’t get one making their credit histories worse than it already is and damaging further job opportunities. Just because you become bankrupt due to payment of medical bills, does it mean you are not good at tour job?

Or if you can’t pay your car bills, does it mean you can’t drive a truck. The answer to both is no, of course not!

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