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Job Seekers Get Hurt By Credit Checks

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Mar 8, 2010 7:27 pm US/Mountain

Job Seekers Get Hurt By Credit Checks

Written by Tom Mustin

Reporting
Tom Mustin
DENVER (CBS4) ― Finding a job these days is tough enough in this economy. Now job seekers are facing another hurdle. A new survey says 60 percent of employers run credit checks on potential hires, as opposed to 42 percent in 2006.

Companies say credit checks provide insight into a person's character and work ethic. Many job applicants disagree.

"I'm really kind of on the front lines of what people are going through," said job-seeking expert Andrew Hudson.

Hudson runs Jobslist.com -- a metro-area job finding Web site that gets about 200,000 hits per month. He disagrees with the practice of using credit reports as a hiring tool.

"Employers who are using credit ratings as a way to disqualify people across the board, it's very unfair in particular in this day and age," Hudson said. "You can't get another job because your credit rating has taken a hit while you're unemployed … and now employers take a look at that credit rating and won't hire you."

Hudson said the tough job market has forced otherwise qualified employees into bad credit situations. He believes unless the job calls for specific financial skills, the credit report should not be a factor.

"If you're applying for a job as a truck driver or a clerk, it's very questionable if a credit report is applicable to your position."

Jim Tovrea has been unemployed for six months after a debilitating car accident. He said late payment of his numerous medical bills caused his credit rating to suffer, and that cost him a security job last week.

"I asked if it had anything to do with the credit report, some eyes lit up," Tovrea said. "You really can't push them and say now I want the job. You're just going to push yourself into a bigger hole."

Tovrea said he later confirmed that his credit rating was the deciding factor.

Hudson said job seekers like Tovrea should watch their credit scores and be prepared to dispute any findings. He says when it comes to interviews, honesty is the best policy.

"Be as transparent as possible and make sure folks understand your circumstances," he said.

Meanwhile, several states are proposing laws to ban credit checks by non-financial employers. A similar bill was introduced last year in Congress. That bill is still stuck in committee. But until further action is taken, job seekers will continue to be haunted by their past credit history.

(© MMX CBS Television Stations, Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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