Many federal and corporate jobs (especially money handling jobs) are now requiring mandatory credit checks. These checks are increasingly becoming a standard practice for employers. More than 30% of employers in 2003 admitted to performing background checks on applicants and that percentage is believed to be increasing. This means that those who most need a job – unemployed men and women who have fallen behind in home or car payments – may be less likely to be hired than similarly qualified, but financially secure, applicants.

The fact that African Americans, women, the elderly and other economically vulnerable populations have been hardest hit by the collapse of the economy means that the use of credit reports as a gatekeeper to employment may also violate federal laws prohibiting discrimination in employmen

The practice of using credit checks has drawn protests from many consumer agencies and advocates, who argue that a prospective employee’s credit history should be off-limits to prospective employers. As Chi Chi Wu of the National Consumer Law Center explains, “You can’t re-establish good credit if you can’t get a job, and you can’t get a job if you’ve got bad credit. Dr. Avis Jones-Deweever, executive director of the National Council of Negro Women, cites a study showing that African Americans are 27 percent more likely to have negative credit histories. She also notes that credit reports often include incorrect and outdated information.

Suggestions for Not Letting Credit Checks Ruin Your Chances

1. Know your report for yourself – Don’t be surprised by what employers find
2. Be upfront about your report – Let the employer know about issues with your report and provide explanation for items on it. Don’t allow them to make their own assumptions about your character based on your credit history.

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