Businesses using credit checks during hiring process

09.01.09
By Timothy Jones

With an unemployment rate approaching 10 percent, many out-of-work Americans are struggling to pay down their credit card debt - which can limit their ability to find a job.

The Charlotte Observer reports that despite some states signing laws preventing employers from looking into a job applicant's credit history, a growing number of companies are doing just that.

North Carolina and South Carolina do not have those laws on the books and Dan Wilson of Asset Protection Associates, a Charlotte-based company that helps employers screen job seekers says many businesses see credit history as an indicator of future employment habits.

"There's a school of thought that a person who consistently does not pay their bills may not be a reliable employee, may not be able to follow directions, (and) may not be able to comply with normal day-to-day job responsibilities," he told the paper.

Under the Fair Credit Reporting Act, employers must let job applicants know if they are conducting a credit check as part of the hiring process. But some states like Wisconsin are considering laws that would stop companies from having credit history play a part in hiring.

A proposed law in the state would not stop employers from looking into a job seeker's credit history, but if the information is used to keep someone from being hired it will be seen as discrimination.

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A number of businesses continue to use credit scores as part of the hiring process