Posted on 03/01/2010 10:50:20 PM PST by The Magical Mischief Tour
ANNAPOLIS, Md. (AP) - It's hard enough to find a job in this economy, and now some people are facing another hurdle: Potential employers are holding their credit histories against them.
Sixty percent of employers recently surveyed by the Society for Human Resources Management said they run credit checks on at least some job applicants, compared with 42 percent in a somewhat similar survey in 2006.
Employers say such checks give them valuable information about an applicant's honesty and sense of responsibility. But lawmakers in at least 16 states from South Carolina to Oregon have proposed outlawing most credit checks, saying the practice traps people in debt because their past financial problems prevent them from finding work.
(Excerpt) Read more at memphisdailynews.com ...
Well his advise was not always correct. I drove a 1967 Buick with no back window for 8 years and when it rained, it rained in the back. Car looked like crap but it was paid for.
Whenever, I went out of town, I rented cars and always treated them with respect and never got any complaint.
Yep...when you go for that security clearance, you pretty much have to lay it all on the table. And they do verify your information.
No kidding. A few years back, I applied for a credit card with my bank. Even though I had a large balance in my account, they ran a credit check. It came back denied. I went down to the bank to demand why they denied it. She pulled the credit report up and said I was $100,000 in debt and had creditors coming after me. I said that was ridiculous. I have a perfect credit rating. So, she called the main office and had them check into it. Turns out the idiot that did the check didn't clear the screen of the previous one they checked and printed their info out under my name. Good thing I wasn't applying for a job and lost out because of that faulty report !!!
First of all, this information is just *one* of the factors that an employer will be considering. And if these financial problems become commonplace then this factor won't be given an inordinate amount of weight.
Additionally, a potential employee's ability to handle money can apply directly to their ability to perform the job. For example, in the past I've had employers advance me cash for work-related travel expenses.
And, finally, I think American's have been, over decades, mesmerized into believing that they must exist at the pleasure of some "employer". If there's no employer then this becomes a moot issue. (The best day of my life was the day I took a 75% pay cut and stepped out on my own - and that was while raising three kids.)
If I went looking for a job today maybe he potential employer would see some issue with my own family's credit history. My reaction would be to brush that aside and discuss how I'm going to bring in more and better business.
Regarding those who would run similar checks on a potential employer - that sounds like a great idea. It's probably something everyone should do!
I hate to say this but I think this is a good law. Too many good, honest people lost their jobs and were unable to pay their bills through no fault of their own and they should not be barred from getting a new job because of financial events over which they had no control.
Those with more money than debt will re-assert the golden rule.
Get over it.
Some of the budget that once paid those middle managers is now becoming available to do just that. This is the source of today's opportunities, and if you keep this in mind you can make plenty of lemonade out of the lemons in the economy.
It’s a privacy issue. Potential employers have no right to dig into a potential employee’s credit history.
The only problem - not ever credit blemish is really the fault of the individual. Some people do a good job of managing debt, but then encounter radical and dramatic setbacks beyond their control. But these checks by employers don’t look at the conditions, just the base score.
I know some who were the most honest and trustworthy you could meet - but after a catastrophic medical problem, had jacked-up credit.
Also know someone who had a pretty good business who got sued into bankruptcy - and they had no control over the circumstances - but that doesn’t stop the courts from being insane. They lost their business and essentially were forced into bankruptcy.
And I think you will find that those “many good people out of work” are rapidly finding their credit scores falling... hard to keep up with your bills when you are out of work - even if you are responsible. Nothing like 12 months+ of being without a job.
Now - for SOME jobs, credit records might be a very good idea to check - banking and other jobs where a perspective employee is going to handle a great deal of cash. But still - context of their credit issues should be at least considered if the credit report is going to be pulled.
I know many people who have had difficulties in their financial lives.
That does not make them dishonest, criminal or a bad worker.
This was always a bad idea.
Staying out of debt is a noble ambition but not always possible depending on the circumstances some people find themselves in, though no choice of their own, such as the current situation.
It is not the employer's business what a potential employee's credit history is, if they can't tell from their work history if the person is employable or not then they need to hire a Personnel director who can.
You don't have to give it to them...
I am pretty sure that a credit score is not a Yes/No answer. It is simply a history of what you have done.
You’ve got some serious anger issues, and I suggest your credit score is no doubt in the toilet and you’re angry about it.
I got laid off from Wal-Mart in Wisconsin last month. So I hacked into the Mexico D.F. computer database, stole the identity of a Mexican from Guanajauto, got my new social security card under his name, Cavarone Gonzalez-Gonzalez, got a job under the table at Wal-mart in Wisconsin,, who gave me a credit card, and now I got a new house from the Barney-Frank-Last-Sank-Bank who lent me because they thought I was an illegal alien, and who knew I can never repay it. Ayyyyy Caramba! America is such a wonderful place to get a job , a house and free credit!
What recession?? -Cavarone Chingadero
So the car was a beater. Was it full of trash (cans, bottles, magazines, used paper towels)? Was it dirty on the inside and outside? Essentially, was it kept as neat as possible within the limits of the age of the vehicle or was it a trash can on wheels? Pink slips (titles) are good things.
In over 50 years of business I never borrowed one cent and did between 1 and 2 million a year.
I had an average of 20-25 employees and didn’t want to get any bigger.
That's a kind of wide range when you look at it (2 million/20 = $100k revenue/employee to 1 million/25 = only 40k revenue /employee)...without overhead, taxes, physical plant, inventory, not to mention your own pay. What was your average employee salary and benefits? How were your workman's comp bills?
Or did you employ Pedro and Juan under the table by any chance?
Cheers!
The way I see it, if a company is stupid enough to reject somebody because of their credit history, they have the right to make that mistake.
A wise company would take other factors into account, and even allow the applicant to explain the reasons for the bad credit, and would be willing to weigh in mitigating factors.
“That does not make them dishonest, criminal or a bad worker.
This was always a bad idea.”
And not only that, I think it’s a bad idea to request resumes from prospective employees. Some just have better credentials, or worked harder to achieve, and stayed out of trouble than other applicants, and when you think about it, how is that fair?
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