Employment screening consultants warned against too much reliance on applicants’ credit histories

The current law in the United States allows employers to have access on an applicant’s credit history provided that certain restrictions are followed. For instance, an applicant has to be informed about the credit check. At the same time, the applicant has to give his or her permission first before the record is checked. Employers do not have access to the applicant’s credit score even if they get the financial report.

If an employer turns down an applicant due to his or her credit standing, they have to provide the applicant a copy of the report that they acquired. In this case, applicants with bad credit are usually sidelined or turned down especially if the position they are applying for involves access to confidential and financial information.

This is why employment screening consultants have been warned about too much reliance on credit histories in determining the credibility of an applicant. Too much reliance on a person’s credit rating in job applications has met many criticisms from labor unions and employees alike. Their main argument is that there is no correlation between credit record and the qualification of an applicant.

Consumers in particular have witnessed how certain information in credit reports are not always accurate or reliable. In fact, it is known that many agencies warn anyone who uses their reports about the possible inaccuracy of the information they have provided.

Some are out of date and others are simply wrong. On top of this, correcting an error takes about a month or two to fix. When this happens, an employer may already have hired an applicant for the position.

This issue is an important concern not just for job applicants but for anyone who becomes affected by the economic climate. Loss of job means greater debt and more debt, in general, is bad for the economy.

According to reports, there are millions of unemployed Americans today. A considerable percentage of these unemployed people have difficulty in keeping up with the bills. If this trend continues, these citizens will continue the cycle of poverty and unemployment. This is why certain steps are being made to stop this practice.

Lester S. Rosen from ESRcheck assured job applicants that this is not always how it works. It is still necessary for employers to seek their possible employee’s credit report for the assurance of the company. However, there are relatively few applicants who do not get the job simply because they have bad credit.