Low Interest Credit Cards

Damon Mills asked:




A good sum of prospective employers often review a job candidate’s personal credit as a screening tool to help determine a ‘right’ fit in the hiring process. But is that really fair for job applicants, especially when factors related to

situations and circumstances beyond one’s control in light of losing a previous job and income because of a subsequent layoff? People applying for jobs need to realize that they have substantial legal protection concerning the use of credit reports as determining factors for job eligibility. Really, an employer cannot obtain a credit report without an applicant’s written permission and further, cannot use it as a factor in denying them a job until the applicant has had an opportunity to review the report.

However a personal credit history can paint a picture with regards to how the applicant has managed his or her financial life in relation to whether or not they are a good fit for the job being considered. It could verify that an applicant is responsible and reliable or even help to confirm their identity. The real concern lies in the hiring of persons who cannot adequately manage their financial affairs, or whose monthly debt-to-income ratios are too high.

Many employers limit credit reports to management and executive positions, or for positions that have access to

cash, assets, a company credit card, or confidential information. Employers are well advised to run credit checks on bookkeepers or others who handle significant amounts of cash.

But for many job positions, such scrutiny is not really necessary, as the job wouldn’t necessarily entail dealing with the above mentioned things. Not only that, but unnecessary credit reviews can discourage applicants from applying.

And running mass credit reports on all applicants, regardless of the position, can have the effect of discriminating against certain protected classes. In addition, employers should avoid making negative hiring decisions on information that is old or even minor.

Furthermore, if credit reports are inaccurate or incomplete, which is often the case for many individuals, how could it really be used as a sound basis for making a good decision whether or not to hire? The credit bureaus strive to be accurate, hence, credit reports are based upon millions of pieces of data assembled by people and networks from sources all over the country, and mistakes are always possible. Negative information may also be the result of a disputed bill, divorce or some other personal issue beyond the applicant’s control.

In the event that people are concerned about their credit rating, they can and should contact all three national credit bureaus: Experian, Equifax and Trans Union. Often times for free, if not a small fee, a copy of a credit report can be provided to an individual along with information regarding disputing any information contained therein. Perhaps alternatives can or should be considered, such as either obviously finding an employer that doesn’t screen

through credit report information or else becoming self-employed by a specific trade or even working in a home-based business. There are numerous successful opportunities available that don’t factor a credit report into the ‘hiring process’.

Beatrice

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