Bad Credit Loans and Employment Debate Rages On |

The news that job hunters whose credit scores have relegated them to the world of bad credit loans may have a more difficult time finding work has caused a bit of a firestorm across the country. Simply put, people aren’t happy with the fact that a growing number of employers are rejecting job applicants not because of their talents, work ethics or past experience, but because of their bad credit scores. It’s especially troubling today, the critics of this practice say, because with unemployment rates so high across the country, it’s more difficult than ever for even extremely qualified applicants to land a good job. When the credit-score test is added to the hurdles that workers must already overcome, it makes finding a job nearly impossible for anyone who has had to turn to bad credit loans to borrow money.

Legislation to End Job Credit Scoring?

This growing trend seems to have hit a nerve among consumers and consumer advocates. They claim that credit scores give no indication of how good a worker someone will be. Proponents of the practice, though, claim the opposite: They say that workers with high credit scores tend to be more responsible and conscientious employees than do those who are often forced to take out bad credit loans. Even state legislators have gotten into the act. In fact, a story in the Baltimore Sun reported that 16 state legislatures are considering bills that would forbid employers from relying on credit score information when making hiring decisions. A host of legislators, quoted in everything from the Wall Street Journal to the New York Times, claim that by using credit scoring, employers are preventing the people who most need steady work from landing jobs.

Hurting the Most Vulnerable?

Do bad credit loans always mean that people are already struggling economically? They’re falling behind on their bills and running up credit card debt. They desperately need a solid, steady paycheck. Problem is, when employers check the credit reports of these applicants they don’t see hard-working, bright individuals. They just see people who can’t pay their bills. It’s no easy task to get past that initial first impression.

Boosting a Score

Those job applicants who do have access only to bad credit loans can take steps to improve their credit score. These steps take time, though, so anyone expecting instant results will be disappointed. First, individuals with bad credit should start a new history of paying all their bills on time. They also need to reduce their revolving debt, as high amounts of credit card debt have a negative impact on credit scores.