LA Times: Trapped: It's hard to get a job if your credit is bad

[marmar]

Trapped: It's hard to get a job if your credit is bad
If you're unemployed, falling behind on bills can make it tougher to find work

By Tiffany Hsu
June 7, 2009


Dan Denton is stuck in a vicious cycle: He's behind on his bills after losing his job. But lousy credit is spoiling his chances of finding new employment.

Recruiters from a St. Louis-based investment company recently rescinded an offer after looking at his credit history, which has been mauled by overdue card payments and an impending foreclosure on his Inland Empire house. He and his wife, Dana, filed for bankruptcy protection this month to try to hang on to their home.

"Of course your credit's going to look bad when you've been unemployed for months," said Denton, 60, a former fundraiser for the Crystal Cathedral in Garden Grove. "But what relevance does that have on your performance?"

The credit report is becoming the latest hurdle for unemployed workers in a dismal U.S. job market. Up to half of employers use credit screening to weed out potentially troublesome hires, though estimates vary, and the practice is on the rise.

Money woes could signal disorder in an individual's personal life that could translate into slipshod work habits, some staffing experts said. Companies lose billions annually to employee theft. A sterling credit history, they said, points to a worker who is more likely to be disciplined, trustworthy and reliable.

....(snip)....

But some experts said that there's no clear link between credit history and job performance and that the reports don't paint a complete picture, omitting details about divorces, medical bills or even identity theft.

Nancy Novak said that when prospective employers check her credit history, they see a mountain of debts and late payments, including $30,000 in credit card bills. What's not evident, she said, is that she accumulated most of it in a failed effort to keep her small business afloat. ......(more)

The complete piece is at: http://www.latimes.com/business/la-fi-cover-badcredit7-2009jun07,0,2666439.story

[Suji to Seoul]

1. We aren't people: We're a credit score, a social security number. . .a criminal record

Welcome to the computer age: If you aren't St. Peter, you're fucked.

[Baby Snooks]

9. And in some cases a bad credit score = criminal record

That is the reality in our country. The assumption being if you have bad credit, you will steal. And therefore you are not likely to be hired.

The federal government for the most part uses the bad credit score = criminal record. Despite the fact that at this point the policies of the federal government are why so many have bad credit scores.

Of course not paying your taxes is okay once you become a federal worker. Which is stealing from the government when you think about it.

Of course if you're not a federal worker it's not okay. They get appointed to cabinet posts. Everyone else gets accused of being a tax cheat.

Welcome to the two Americas. Again.

[dotymed]

24. NO DOUBT

It should be ILLEGAL AS HELL for a potential employer to look
at your credit score. I lost my home due to medical bills, and
my job, due to illness. Almost three years later,I am sill
unemployed. I have hundreds of applications turned in. The
Federal government says that if you are a "schedule
A" disabled person, they can even create a job opening
for you and hire you non-competitively. Well, I have been
applying and calling the disability people. Al I have gotten
is the run around. All of these "presidential
promises" in the federal govt. disabled hiring program
are possible...but there is no law or incentive for it to
happen. It is all just B.S. I have a B.S. in English and I was
a Union Carpenter before I became disabled.  I can't get any
of the Govt. (guaranteed insurance) jobs, and I have applied
for hundreds of them.

[Strong Atheist]

34. Welcome to DU!

:toast:

[destes]

106. A lot of us are a single trip-up from total dissolution

and don't even know it. I was a construction manager for a general contractor. It is common practice for management to assume that ANYONE with a workmen's comp claim is looking for a free ride. It is an additional hurdle in the process of rehabilitation to overcome that stigma. I'm not presuming that's your situation. It's just another example of how the more "competitive" a society is, the less compassion it has.

[WhiteTara]

29. OFU

One Fodder Unit.

[Orrex]

2. A credit check is no predictor of employment viability

For instance, consider all of those executives who ran their companies into the ground in the past few years. I suspect that most of them had stellar credit ratings.

[msongs]

3. since when did an invasive "credit" check become part of a job app process?? nt

[vadawg]

5. for some jobs it is needed, we can be fired if our credit goes out of the window

too much debt etc is the same, i guess its we would be more open to bribes if we are in financial straits.

[quiller4]

79. Some employers started checking credit in the late 70s.

I was hired for an administrative post at a private college in 1977. After I was hired and met with the human resources folks to enroll in medical and pension plans, I was informed that a credit check had been run between my first and second interview.

[enlightenment]

4. I don't think employers should be allowed to check credit scores.

Using a credit score (computer generated by one of a variety of 'models' that may or may not have anything to do with a person's life) as an indicator of job-worthiness is nothing more than 21st century social Darwinism.

It's no more accurate than phrenology.

[vadawg]

6. i think that unless we are going to mandate what an employer can look at we have to be careful

i think that any employer whould be allowed to have their own criteria for employment, whether thats credit, education, experience or whatever, though they still have to abide by non ddescrimination statutes.

[enlightenment]

10. There are very big differences between

looking at a potential employees education and experience and examining their credit score.

A credit score is not a true indicator of squat - although the credit reporting agencies (privately held, for profit corporations, btw) have managed to convince the world that they are.

A college transcript is not a true indicator of intelligence, but it does indicate that an individual has had at least come exposure to skills sets and ideas that may be useful to the job. Experience is another indicator of acquired skills and abilities.

What does a credit score indicate, really? That you have debt? What does that mean as an indicator of your job-worthiness? Using a credit score as an indicator is utterly subjective and meaningless - and it should not be allowed.

Companies already get away with skirting most of the laws that they are supposed to abide by, simply by requiring your social security number on the application. From that they can find out just about anything they want, without even seeing the person who filled out the application - and it's not illegal because you GAVE them the number.

The number itself will tell them where and when you were born, and the access it provides gives them everything else.

Even without access to the number, companies routinely break the law in interviews - and people apparently answer their questions. I have been asked "when did you graduate from high school" (that determines my age within a year or two) and "did you grow up in XXX?" (that is an attempt to find out where I was born). I have been asked - bold-faced - if I am married (illegal); have children (illegal). I have even had employers try to figure out what flavour of religious I am - or not.

With the crap that employers get away with on a daily basis, we do not need yet another form of subjective discrimination as a barrier to employment - and it is utterly subjective. There is no objective science to back up the claim of 'low credit score = bad person'.

[Raineyb]

11. My credit score is none of any employer's goddamned business

And I don't why there should be any concern about mandating that employers cannot look at it. Credit has nothing to do with how good a job you'll do.

[vadawg]

16. if thats the case then you could say that nothing about you is the employers business

as i said in my job one of the important factors is financial stability and one of the ways they check that is through the credit reports and bank records.

[juno jones]

26. Then let it be an indicator of your industry.

But as a cook, they have no beeswax with my credit history. My resume should speak volumes. Long steady employment with references, and letters of reference.

Then again, I've never had to endure a background check and have never applied to a place where that's expected of me. Ain't I the lucky one?

[vadawg]

27. if you think so, i got no problem with the background check myself

even if my background isnt all that rosy, it hasnt stopped me.

[juno jones]

28. I trust you with your own stuff

I'm guessing you're in finance or some other place where money is low-hanging fruit.

It's like drug-testing bus drivers or operators of heavy equipment. Part of the job.

Unfortunately it's being used as a test where it shouldn't be. God knows how many broke housewives trying to start out again with a post-divorce bankruptcy and aren't able to get jobs at (for example) Walmart because of credit history.

When it really has no bearing on job performance (or worse used to try to predict future thought crimes), it should be scrapped.

Cheers :hi:

[vadawg]

30. no im actually a sheriffs deputy, so whilst i have access to lots of money

there is also the temptation to many to help themselves to illegal funds etc.

[Raineyb]

33. Well that explains your constant deference to power. n/t

[vadawg]

37. lol you have no idea of anything about me whatsoever

beig a rebel is all well and good from the safety of your computer but in the real world it can get you fucked up.

[Raineyb]

54. It's not about being a rebel it's about setting boundaries.

Which apparently you are not interested in. Judging by your posts so long as those in power say it's okay, it's okay. Well it's not okay and if no one puts their foot down they'll keep pushing the line. But since your so called safety is paramount acquiesce and see where it gets you. You're no safer than I am although I've managed to get through a couple of decades without getting fucked up thank you very much.

Perhaps if you were to deal in the real world without the ability to bully people under color of authority you'd understand that.

[vadawg]

57. lol once again you know nothing of my background and my having been in the real world

you think ive always been an LEO..

[juno jones]

36. Gotcha, and yes, there is a reason to keep everything aboveboard when you perform your job.

In my profession, and many others, we don't even look on cash money, illegal or otherwise. in fact, I refuse to deal with the till unless certain safeguards are in place. We really aren't in a position to touch money, and I know I prefer not to although I'm damn good at it and my drawers have ALWAYS equaled out within at least a few pennies.

Thank you for doing what you do honestly. I admire integrity no matter the job or occupation.

[vadawg]

38. yup we have to be above board, i get to deal with lots of cash, drugs and weapons all the time

and as im dealing with gangs alot, there are a lot of things that can go wrong, so we need to make sure that we are really meticoulous with our paperwork, and the department has to make sure we are not in a position to be bribed or financially coerced into compromising ourselves.

[CubicleGuy]

95. If a potential employer is afraid you'll steal...

... why isn't the responsibility on them to ensure that they have adequate controls and audits set up to make sure their assets can't be walked out the door?

Instead, they're allowed to invade your privacy and declare you a threat to their survival because you got laid off 7 years ago and eventually had to declare bankruptcy as a result.

Seems pretty darn arbitrary to me.

[Raineyb]

31. A job is a means to financial security so basically you're saying it's perfectly

acceptable to not hire people because at one time they were unemployed and had trouble paying bills. If you don't see how asinine this line of "thinking" is then I really don't see the point in continuing. Is there any abuse by those in power you won't make an excuse for?

[vadawg]

42. lol tell you what when your hiring you can set the rules

if someone else is hiring me and they want to do a financial check then i am happy to let them especially if the job entails any money handling or clearences.

[Raineyb]

52. LOL tell you what, why don't you get back to me when you start thinking for yourself.

It's no fun arguing with automatons.

[vadawg]

53. lol as i said you have no idea of anything about me,

ive done the rebel thing, was ok while it lasted but rules are needed or you get anarchy, which i dont think you would do to well in.

[Raineyb]

55. Not allowing employers to be overly intrusive != anarchy.

And if you think it is you are the one who is truly not going to do well in the world.

[vadawg]

58. extrapolate much, an employer running your credit history is not intrusive

it makes good business sense, they want to see if you are financially stable, some might let you explain any problems, others might use it as a cut off, but thats there call and i have no problem with it.

[Raineyb]

65. No it's not their call the credit report is none of their goddamned business.

[closeupready]

103. I bet you win the 'exemplary employee award' every week.

n/t

[CreekDog]

80. opposing credit checks for employment purposes is not being a rebel

or do you think that people who disagree with investigations of their personal information are "rebelling"?

at first i thought the stereotypes about you because of your job in law enforcement were unfair attacks. however, your posts show that regardless of your occupation, you have a warped view of what being a "rebel" really is.

[mrs_p]

83. what about privacy?

an employer is not allowed (legally) to look at your medical records, for instance. shouldn't there be a privacy line over which they cannot cross?

[closeupready]

104. I think maybe part of this is that the dismal economy has people scared to speak out

in their own defense when their interests and the interests of a potential employer conflict.

Very sad what toads people become under the right circumstances.

[Thickasabrick]

59. I agree. This comes too close to invasion of privacy. Criminal check

is ok but that's it.

[AZBlue]

77. Unless the applicant has unlimited and unchecked access to large amounts of money, there's no point.

[undeterred]

7. The hiring process is way too invasive and one sided.

Companies demand full disclosure from the potential employee but they lie through their teeth about everything. If they don't take people with substandard credit in this economy, there are going to be very few choices, and they won't necessarily be the best candidates.

[Blue_Tires]

13. +1

[CubicleGuy]

96. If a potential employer can run a credit check...

... then a potential employee ought to be able to do the same, on the grounds that he really needs to know the kind of people he's working for before he accepts an offer of employment.

We ought to be able to run a credit check against everyone on the board of directors, as well as the person who'll be the person you report to should you be hired.

Fair is fair.

[undeterred]

101. And I'd like to be able to get a urine sample

any time I ask for one, from anyone in my chain of command upward. They have no business making business decisions if they had a cocktail or smoked a little weed. Unless the rest of us can, of course.

[Fire1]

97. Without a doubt. Wall street proved that.

[Iwillnevergiveup]

8. First rec??

This is one scary story that needs to get out there.

K&R

[verdalaven]

12. Unreal.

So if you have money troubles - i.e. you are poor, you are automatically unstable, unethical, immoral, a thief? A lazy thief?

Well, this pisses me off.

[undeterred]

14. Note that this is usually in addition to a criminal background

check. So an applicant can have a completely clean criminal record but the burden of proof is on them - they might be tempted to steal even though they've never done so in the past. Its irrational.

[ProgressIn2008]

15. Guess we're entering the "hanged for stealing a loaf of bread" stage.

Then again, maybe we were always there, in some way or another.

This gives lie to everything we tell ourselves about "getting ahead." How much longer will we believe those lies?

[marmar]

17. Exactly.....That "anyone can succeed in America" line is a huge pile of mierda.....

..... The system is designed to maintain a permanent underclass.

[ProgressIn2008]

18. You're speaking truth right there - a permanent (and growing) underclass is needed

in order for the machine to grind forward.

[Fire1]

98. Indeed. Capitalism is not designed for poor people. eom.

[barbtries]

19. i'm lucky to have a great job.

because my credit score sucks. i don't even do credit but it sucks anyway. one of my co-workers has been through a bankruptcy and my employer found that out but hired her anyway. she is a stellar employee, works her ass off.

[Greyhound]

32. I'll bet you work for a small business. n/t

[barbtries]

35. small in terms of head count.

i really am very fortunate to have my job.

[Greyhound]

39. I keep trying to get the message through; Small business is the engine that drives the American

economy.

Small business employs about 80% of us.

Small business is THE source of innovation.

Small business is flexible and better adapted to surviving change.

Small business makes decisions at the human level, and profits greatly from that.

Once a business reaches a certain size, it stops expanding and begins to shed jobs in an effort to keep growing profits. They get to a size where they take more than they produce to maintain their size and their market-share and become a net drain on the community and the nation.

Our government propping up huge companies is the very worst thing it can do, doing nothing is better.

If we really wanted to turn the economy around, we, the government, would be pouring those hundreds of billions into small and micro businesses. Funding start-ups and directly financing expansions.

[rhett o rick]

20. There are too few jobs making it a hire-er's market. It's hard for lots of people to get jobs. nm

[chimpyisstillsatan]

21. maybe prayer will improve his FICO score?

A fundraiser for the Crystal Cathedral? If one ever wanted proof that Karma works, this is it. Religious freaks like the Crystal Cathedral crowd voted en masee for the people who created this mess. Too bad so many of the rest of us have to fall into the hole with them.

[AwakeAtLast]

22. I noticed that, too.

Not sure why that was considered a career, either. I would think that would not look very good on a resume', IMO.

[dotymed]

25. AMEN

[Tierra_y_Libertad]

23. Catch-22. You have to have good credit to get a job. You have to have a job to get good credit.

[ShadowLiberal]

40. Umm... unless you're going to have access to their bank account why bother with this?

Seriously, unless you're applying to be someone who can do transactions with the company bank account, or someone who will have access to a ton of company cash lying around, why bother with this? If you're going to have access to steal the company's money then ok it sounds reasonable, but otherwise it's just stupid.

Seriously, a guy I work with and his wife (who both work for the company) are usually flat broke (he once mentioned that they only had like $2,000 dollars in their bank account, and has shown a willingness to buy stuff that he doesn't exactly need), yet they're both probably the best employees in the areas of the company that their jobs are for. Way better then a lot of the other people at our company, most of whom have quite a lot of cash in the bank or investments (over $100,000's worth I would guess).

[TwixVoy]

62. Money in the bank

is not the same as a bad credit report. Flat broke does not equal bad credit.

[uppityperson]

41. nursing home I am working at has checking your credit thing before hiring. Pisses me off

Look at my work history, education, references, but credit history? I don't see how making it a requirement for hiring should be legal.

[Gormy Cuss]

43. Link to an old abstract/press release of the Eastern Kentucky U study cited

http://www.newswise.com/articles/view/502792/

It was a small study but had interesting results:

“The hypothesis of our study was that applicants with good credit reports would, after being hired, receive more positive performance evaluations and would be less likely to be terminated from their jobs,” says Palmer.

But that is simply not true, he says.

There is no evidence to show that using credit checks can predict a person’s work performance and likelihood of leaving the company, he says. In fact, one aspect of the study revealed that workers with a higher number of 30-day late payments actually received higher performance ratings....

I'd love to see a large scale study on this issue. I've contended for years that employers were sold a bill of goods by the credit bureaus when they were told that this product would be an effective screening tool for all employees rather than just those with direct access to money. Make no mistake about it -- widespread use of credit reports for employment screening DID come as a result of marketing by the credit bureaus. They're always looking for new markets for the data they keep on us. I don't know what the CBs charge but when I worked for a company which used a limited subset of data (last known address and phone) the charge was significant.

[Odin2005]

44. This is how they maintain a desperate underclass.

They kick us while we are up, kick us while we are down, and kick us all around. And individual's credit-worthiness should be a government-protected statistic and used only for eligibility for loans and credit cards, nothing else. It certainly shouldn't be the property of private corporations.

[kjackson227]

87. ITA... And, they also use your credit score to attain auto insurance...

Even if you haven't had an accident in 10 years, if you have bad credit, you will pay the higher price, ANYWAY.

[xchrom]

45. recommend -- shit is OUT OF HAND!

this is horrifying on multiple levels.

[SoCalDem]

46. "...fundraiser for the Crystal Cathedral..." (did he try the power of prayer)

:rofl:

but seriously, when someone with bad credit (for any reason) is job-hunting, they often must use their network of friends & family, to ease back into the workforce. People who know you, will oftem offer a job that might give some breathing room and a chance to repair the credit.

At 60, it's very likely that he would not be a dream job-candidate for any company that would recruit people. They are not usually looking for someone aged 60..to be recruited by an out of state company. There are LOTS of younger unemployed people who are more "attractive" potential hires.

As usual, this story sounds a bit "fishy". No doubt, the paper was trying to do a schmaltzy "woe-is-me" story about how hard it is to find a job, when you have bad credit. This is not new. It's been this way for a long time. It's hard to buy insurance, or open a bank account, with bad credit.
As mean as it may sound, a person's credit tells a lot about them. The person whose failing business was being propped up by mounting crdit card debt would have made a better story. It may just be that the business needed to fail, and that proprietor's business plan was nnever really sustainable, and they refused to see it. Using credit cards to prop up a failing business is a story that needs to be told.

[Missy Vixen]

51. Oh, yeah

>As mean as it may sound, a person's credit tells a lot about them.<

And for those of us who've been out of work for 6+ months and doing whatever we can to pay the bills, it says even more about you.

Does it occur to you that the reason why this story is so compelling is that there are MILLIONS who will now fit into the "bad credit" category, instead of the fraction that were there previously?

Here it is: It's impossible for those with bruised credit to fix what's wrong if they can't get a job in the first place. THINK ABOUT IT. In the meantime, maybe you should muse on those who got us in the fix we're in right now. I'm sure their credit is A++.

[SoCalDem]

69. I did THINK ABOUT IT.. that's precisely why I said:

"when someone with bad credit (for any reason) is job-hunting, they often must use their network of friends & family, to ease back into the workforce. People who know you, will often offer a job that might give some breathing room and a chance to repair the credit."

People who know you personally , will often know the underlying circumstances, while an impersonal "head-hunter" or agency will not care a bit.

put yourself in their shoes..Their own jobs are on the line..they have to fill a position:

applicant A has :
a bankruptcy, horrible credit issues, a foreclosure, bounced checks, closed accounts, and has been out of work for a while

applicant B has: none of the above

each seems to have the same "qualifications" for the job

Which one would YOU vouch for when YOUR boss says "why did we hire this person"?

I am NOT saying it's fair, or nice or decent..it just is what it is, in a down economy, where there are multiple applicants for each job.

People who do not "know you", also don't care how badly you need the job.

There are patterns to lives, and when people's finances spiral out of control, there are often other parts of their lives that are out-of-whack, and impersonal hiring services/people are looking for people without a lot of personal drama.

When my boys were growing up and looking for jobs, I always told them to portray themselves as someone the (usually older) person interviewing them would think "I wish my daughter/sister/niece were dating THIS guy".

[Missy Vixen]

89. Here's some facts

My husband's been out of work since November 17th. NOBODY is hiring right now, and that includes all of our friends and his professional contacts.

It is very, very, VERY hard to maintain a positive credit rating, let alone repair a bad one, when you are living on unemployment.

I'm not sure how many times I am going to have to explain this to the vast majority here who are not affected by the downturn and think that those that are are nothing but "lazy", or failed to pull themselves up by their bootstraps.

Again: It is hard to maintain a positive credit rating when you can't find a job, and there are millions currently facing this problem. Using a credit score to offer employment in any arena besides finance is nothing more than discrimination. Of course, those who continue riding their high horses can't see this. It doesn't affect them. Those that eventually manage to catch on somewhere will have to rebuild from scratch.

In the meantime, I'm happy you gave such wonderful instructions to your sons, but you might want to bear in mind you are not going through this. We are, along with millions of others. When you find yourself in our shoes, feel free to lecture.

[SoCalDem]

107. no lecture here..

and I never said anything about being lazy..and not a single mention of bootstraps from me either..

Like I said.. it just is what it is. It;s NOT personal when people do not get hired because of their credit rating. If our LAWS allow/encourage the USE/easy access of/to credit reports , and allow companies to exclude applicants because of the information, it's just the system we all have to work within, or try to change.

My friend who declared bankruptcy could not even open a bank account. She closed the account she had with her ex, and did not want to keep banking there, after she ran into him a few times there.

MY bank opened an account for her with ME on the account, and I just gave her both ATM/Debit cards, and used her address for the statements.

Friends need to step in and help each other out when times are tought. It's how people made it through the depression.

[Mojorabbit]

75. Good God

have you not been following the financial news? My oldest sister is in this exact mess. Her hubby who has had a small electrician business for over twenty five years is in big trouble as jobs have dried up. They are behind in their mortgage. They are eeking by by the skin of their teeth and family help. She is desperately trying to find work but every time she gets a hit she loses it because of her credit report and has been told so. She is a hard worker and as honest as they come.

[SoCalDem]

82. Again, I will say it

Unfortunately, when this happens, people need to look INSIDE their sphere of influence and try to find a job (even a "lesser" job) with the help of friends, relatives, etc. Once back IN the workforce, they have an opportunity to rebuild their credit, and may eventually end up with a job like they "used to have".

Many will NEVER again have the "great job" with the bennies. It's just a sign of the times, unfortunately.

Our middle son was laid off a while back, and he too is feeling the pinch. He's waiting tables and doing odd jobs and hoping he will get called back, but his job is specialized.. he's a crane operator at a steel mill..non-union..so he knows that until the industry gets going again, his wonderful job is probably not coming back (to him) anytime soon, since he had the lowest seniority on the TWO SHIFTS that were laid off.

As for not "following" the news, I was one of the few around here who WERE predicting this fiacso...as early as 2005, and we were regularly called "Doom & Gloomers". The loss of the job is hard to bear, but when it happens to coincide with crushing debt that's been piling up for years, it's no "accident" that EZ-Credit came along at just the same time as union-crushing and falling wages.

Middle class people no longer could count on wages keeping pace, but they were "offered" plastic, to keep living like they were still middle class. People who resisted credit, and downsized their expenses may weather the storm, but most people fell into the trap, and are now paying for it.

Honesty and trustworthiness are a plus, BUT when someone you do not know, is in charge of hiring, they will always look for the employee with the least drama in their lives. It's not fair, but it just IS what's happening. I hope your sister finds work soon, and has asked her friends to help her find a job. Often, jobs are found because someone already "in" , who knows you, will vouch for you.

[Mythsaje]

47. This practice should be criminalized--post haste. n/t

[Cobalt-60]

48. they're holding jobs for debt slaves

Anyone that doesn't channel every dollar toward Banksters' interest
is to be starved out.

[undeterred]

49. I filled out an application which asked if I had collected unemployment insurance.

I'm pretty sure thats illegal and its certainly unrelated to my ability to do a job. But it was an online application - and you had to go to their office to fill it out - and you couldn't finish the application if you left it unanswered.

I never heard from the employer, probably because I answered honestly.

[TwixVoy]

61. Actually that is a legal question

and is asked because the government gives them a tax credit if they hire you. Therefore they actually would be MORE likely to hire you over someone who answered no.

Facts are funny things.

[undeterred]

63. I find that hard to believe.

They didn't ask if I was currently collecting unemployment insurance, but if I ever had. Why would there be a tax credit for that? From State Government? In what states?

Please provide a link if you have one to substantiate this 'fact'.

[HOLOS]

50. Yes!

[Wednesdays]

56. K&R

:kick:

[TwixVoy]

60. Have no problem with this

As a former retail manager who was responsible for hiring people I DO believe a credit report can give you some insight in to a persons character.

For example, if they have a history of running up huge credit card balances and then defaulting on them consistently that indicates the person is likely dishonest or irresponsible.

If that person has multiple collections for bad checks same story.

There are few exceptions, such as major medical bills... and I doubt an employer would be so shallow as to hold that against someone.

[Raineyb]

64. And they'd have no way of knowing if the credit cards were run up because of a medical necessity or

bad budgeting habits. And frankly, considering the state of health care I wouldn't be surprised if an employer did hold medical bills against them. The credit history only tells of the balances and whether or not they were overdue. It does not say why they were overdue or whether or not the person is just a cheat. The credit report is none of their damn business.

[sarcasmo]

70. You are sadly mistaken, half of all Bankruptcy is due to Medical reasons.

What a sad Country when we can not get a job to pay off our bills based on our credit score.

[Sen. Walter Sobchak]

78. We don't look at credit scores - we look at credit reports

If somebody who has been out of work for a year - until that point had perfect credit, it isn't a big deal. If somebody presently employed has a terrible credit report and are in arrears on a BMW Financial Services lease and a Macy's credit card, well... we look at that in a slightly harsher light.

We always inform the candidate at the interview we will do a credit check and are there any errors or other considerations with their credit report they would like to tell us about before hand.

[sarcasmo]

92. Sad state of affairs to be judge on a job based on credit. Glad I have worked for myself.

[Sen. Walter Sobchak]

94. financial management is a huge part of what we do,

if you can't manage your own finances why should our clients let you manage theirs.

[Raineyb]

105. And if you don't have a job how does one pay one's bills without resorting to

criminal behavior?

It's rather difficult to manage one's finances when money isn't coming in.

[nuxvomica]

66. This should at the very least be actionable

What if you lose a position because of your credit score and you can demonstrate even a single error on that report? You should be able to sue the credit bureau for the estimated lifetime value of that job. Otherwise, there is zero incentive for the bureau to produce accurate reports.
That's aside from the privacy issue and the widespread managerial incompetence that likely exists at firms that require such over-the-line information as credit reports and drug tests.

[tabbycat31]

67. this practice needs to be banned

the exception is if the job requires good credit.

[1955doubledie]

68. Such as...?

:shrug:

[tabbycat31]

72. any job where you have access to a customer/client's SSN

[Kansas Wyatt]

71. When are people on the DU finally going to accept what I've been saying for years?

Corporate America merged with the U.S. Government, by the servants of the Wealthy Elite manipulating and tweaking the New Deal over the last several years and adding several layers of new laws.

We are all indebted to our new Corporate Government Store, formerly known as the Company Store, and death is the only escape. Think Company Store on steroids, with the muscle of the Federal Government, and you can then understand our new Corporate Government Store.

It does not matter how well off you are now or will be, you can be fucked over at some point in your life and you will be put in your place. Now get back to the grindstone, because the Corporate Government Store owns your ass for the rest of your life and you absolutely have to make a payment on your life or they will make your life a living hell.

Yes, the rich do need to be liquidated for the good of the country, because they do not give a damn about it or it's citizens.

[BlooInBloo]

73. Ironically, it's also hard to get credit if your job is bad.

[meuniermr]

74. Hmm, I have always had to sign for permission

For potential employers to do a credit check.

[depakid]

76. Yet another area of abuse that needs to be regulated

Will the Dems step up to the plate?

[BolivarianHero]

84. Clinton had Congress for two years...

Did he fix this travesty?

[Daphne08]

81. This is an invasion of privacy as far as I'm concerned. n/t

[leveymg]

85. It's worse in the gov't sector where jobs require a security clearance.

This factor needs to be revisited to take into account the large number of people who've lost income by no fault of their own during the current crisis.

It's a different world than the one we left behind.

[blueworld]

86. This infuriates me & is a privacy violation I think

Thanks so much for posting this link. It infuriates me that moral judgments are made & encouraged by things like credit scores, church attendance, personal habits etc. I had one skunk tell me that her agency would not hire a person with a poor credit report to work as a teller at a bank, for example, because it was "temptation". I pointed out that Martha Stewart has 8 mansions & more money than God & was then under house arrest because of "temptation". Blank face response.

I was applying for a part-time job at a newspaper through her agency & they gave me 15, count 'em, 15 release forms to fill out including my medical history, permission for neighbor interviews etc. I refused to comply & walked out. My credit etc. is stellar, but I was outraged, and I assumed it was because I live in Falwell-land. I was dead wrong - it's going on everywhere.

There was a time in my life decades ago when I was in debt up to my coccyx and I was sooo proud of how hard I worked & saved & scrimped to recover from that, even with all the damned fees & interest & finance charges...I won't ever let it happen again but what about those who are TRYING to fix their own problems now???

Why don't they just hire psychics & palm-readers for every bloody interview!

Business has gone way way too far in this country - yet when their credit stinks WE have to bail THEM out!

Enough, brothers & sisters. :grr:

[madamesilverspurs]

88. And if your credit report goes bad

you are automatically "high risk" for car insurance and they'll jack your rates up. I found that out after being without a vehicle for a couple of years while paying of medical bills. They actually told me I would have been better off had I paid small monthly premiums to remain 'active' until I got another car. I asked them if they were really expecting me to pay for insurance for a non-existent vehicle and they said yes, if I wanted to keep my rates down. When I asked the state insurance commissioner about the legitimacy of such practice she answered quite testily, "It's legal," and hung up on me. Totally, totally sucks.

[Fire1]

99. I'll keep that in mine for my son's policy until he gets another

car. Don't know when that may be, though.

[derby378]

90. Then maybe we should outlaw pre-employment credit checks?

:shrug:

[sarcasmo]

93. I think that is the correct form of action, to make pre-employment credit checks illegal.

[Gman]

91. Clearly this is something that should be highly illegal

[catrose]

100. They're just now figuring this out?

My son has had offers rescinded also. Apparently the argument that you would pay your bills if you had a job doesn't cut it.

I hope the staffing experts who say that money woes could signal personal disorder that could translate into slipshod work get to find out whether that's true.

[chaska]

102. Amen! Always amazes me how long it takes for the comfortable to see suffering.

[ck4829]

108. I'm sure Ken Lay, Jack Abramoff, and Bernie Madoff had credit scores that reflected their character

Right?