Bad Credit Growing Barrier to Employment

March 31, 2011  |  

(TheLoop21) — First it was ex-convicts who couldn’t get hired. Then last week we learned that the unemployed were flagged by recruiters because today you need a job to get a job. Now, your Mastercard balance (and your ability to pay it on time) could make or break your next job interview.  An increasing number of employers use credit reports to determine whether or not someone is worthy enough to be put on the payroll. According to the Society of Human Resource Management,more than 60 percent of companies use credit reports to determine employment prospects. That means people with poor or lower credit scores, despite experience and skill sets, are assumed to be less reliable and trustworthy employees as compared to those with good credit scores.  Congress has watched these changes with little response. Rep. Steve Cohen (D-TN) re-introduced a bill in January titled the Equal Employment for All Act, but there has been no action since it hit the House committee overseeing financial affairs. Actually, there was little movement on it when he initially introduced it in September 2010, when Democrats were in the majority. Maybe it has something to do with the nearly $2 million in campaign contributions Members of Congress have received from the credit reporting industry since 2002.

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