Banning credit checks on job applicants the right thing to do
As more Americans suffer job losses and the inability to meet financial obligations, states are considering legislation that will
prohibit employers from using credit checks to deny employment. According to a recent report by the
Associated Press, proponents of the idea argue that current restrictions make
it increasingly difficult for qualified people to secure work. This year, 16
states from
I support the move by many states to prohibit credit checks,
especially during these difficult economic times. With unemployment rates at record highs, the
job market should be fair for everyone who is qualified to perform a job.
And, it is no secret: Honest Americans find themselves in financial hardship
not because of their own doing in many cases, but in part because of the credit
card industry, which by lowering credit limits, has damaged millions of credit
reports. Denying people jobs because of
poor credit is tantamount to kicking them while they are down.
Finally, the epidemic of bad credit is growing everyday as
people make hard choices: Do I pay my credit card bills or feed my family? Do I
restructure my mortgage and risk being denied the very job I need? While the idea of what responsible means
today has been redefined, the FICO score and credit rating standards have
not. (Read Fair Isaac Corporation (FICO)
increasingly irrelevant.) Legislation to prohibit credit checks for employment
is not only the right thing to do, but also a necessary action to curb soaring
unemployment.
What related stories do you have? Have you been denied a job
after a credit check?
Greetings! I’m Kevin D. Johnson, a business owner who has recently assumed the role of consumer advocate and internet activist. Atlanta, Georgia is my home.
Upon returning from my wonderful honeymoon in Jamaica in October 2008, I received what I thought was an ordinary American Express bill, but to my surprise it was a disappointing letter informing me that my credit line was reduced by about 65% for a highly suspicious and discriminatory reason. Considering my excellent credit score and pristine payment history, it just didn’t make sense. However, what does make sense are the unfair and insidious policies that I have uncovered when asking why. It is time to change them.
I created this web site to document and share my challenging journey to change what is wrong, unfair, and unjust in the credit card industry. The ultimate goal of this web site is to inform consumers of ways to stand up for themselves against treacherous business practices and to educate consumers about how to improve their credit. Finally, I hope to encourage a more open dialogue with credit card companies about their policies–good and bad.
I am proud to say that this blog's unyielding demand for change led to an important 
I was denied a job because of my credit. The company had given me an offer letter with salary and stock options but once they pulled my credit report they resended the offer. I was hurt and depressed.
Posted by: Kevin Robinson | April 17, 2010 at 07:58 AM
I was talking to my best friend the other evening and she was telling me that there are now jobs where you cannot even apply if you don't have a FICO score of at least 800. How on earth are people supposed to get jobs after having a rough time and get back on their feet if they can't even apply without an almost perfect credit score?
Posted by: Carole May | April 12, 2010 at 05:04 PM