CT House: Credit score not relevant in workplace

05.18.09
By Nicholas Storie

A number of factors can contribute to deterioration in individuals' credit scores, from late payments on bills to short sales of residential properties. Given the financial hardship facing many Americans, maintaining a good credit history during the recession has become a more daunting task.

One place where many people don't want to reveal their credit history is to potential employers - and in Connecticut, consumers might not have to worry about it much longer.

The Associated Press reported last week that the Connecticut House of Representatives voted 109-34 to pass legislation protecting a borrower's credit past.

The legislation prevents businesses from requiring employees to divulge their credit score, account balance, payment history or savings and checking account information when applying for a job, reports the news source.

However, there is one caveat. If a potential employee's prospective duties could be affected by or related to their credit report, or if an employer suspects illegal activity, they can still require the data.

The bill has yet to move through the Senate, says the AP.

While many people associate credit checks with opening a new credit card, renting an apartment or applying for a home loan, it is a somewhat common procedure for many employers.

Earlier this year a TrueCredit.com survey showed that roughly 16 percent of human resources groups use a pre-employment credit check as one factor in the hiring process.

With fewer and fewer job openings these days, and a growing number of qualified applicants looking for a position, reviewing the credit report of a candidate is one way some employers are more closely screening their applicants.

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Credit scores may cause less stress for CT residents soon