Interesting article on Huffington Post:
Are Credit Checks Keeping The Jobless Out Of Work?
Bailey said he applied for a new job at Am-Rail in Kansas City, Missouri, three weeks ago but failed to pass the background check because of his poor credit.
"When they run a credit report on you, I guess the score is supposed to determine what kind of employee you are," he said. "I've had very few jobs in my lifetime, and every job I've had I stuck with for a very long time. Seems like they should go off of you, not your credit score."
...experts are wondering whether it's still a fair screening tool in the wake of a recession that has left 15 million Americans unemployed and unable to keep up with their bills.
According to a survey conducted by the Society for Human Resource Management, 60 percent of all organizations polled said they conducted background checks on applicants, and 17 percent in the Northeast reported that favorable background check results are the most important factor influencing the final decision of whether to hire someone.
Considering the fact that more than half of all working adults in America have either been unemployed, taken a pay cut, had their work hours reduced or become involuntary part-time workers since the beginning of the recession, more and more job applicants are hampered by blemishes on their credit reports in the search for a steady salary.
It's pretty well a "given" that many employers use credit records as part of their pre-hiring "due diligence" background check on prospective employees. It's scary to read that having a good background check is the "most important factor influencing the final decision of whether to hire someone." Ignore recommendation letters, job history, past performance appraisals, length of service at past jobs,....what really matters is whether Joe pays his bills on time.