We all know that in some cases, your credit score can affect your ability to get a job. Many employers use credit checks to screen potential employees, under the assumption that an individual’s credit history helps to indicate whether they will be a responsible or trustworthy employee. But as the New York Times recently reported, there is no evidence that people with poor credit are more likely to be a bad employee.
In light of the economic recession, legislators in over a dozen states are taking steps toward limiting the use of credit checks as hiring factors. Lawmakers say that the lack of proof that bad credit indicates a risky employee and the fact that credit checks unfairly target those who have suffered credit damage from layoffs, medical bills, and other uncontrollable factors, are good reasons to prohibit employers from using credit checks to discriminate in hiring.