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Discredited: How Employment Credit Checks Keep Qualified Workers Out of a Job

Discredited: How Employment Credit Checks Keep Qualified Workers Out of a Job

Why work credit checks constitute a barrier that is illegitimate work.

Executive Summary

Today, extremely common for companies to check out job seekers’ individual credit rating before you make a hiring choice. An array of roles, from high-level monetary articles to jobs maintenance that is doing, offering phone technology help, being employed as a distribution motorist or offering frozen yogurt, might need a credit check. Yet despite their prevalence, little is famous as to what credit checks actually show companies, just just what the effects are for job seekers, or employment credit checks’ general effect on our culture. This report makes use of data that are new Demos’ 2012 nationwide Survey on credit debt in Low- and center- Income Households to address these concerns. Overall, we find significant proof that work credit checks constitute an illegitimate barrier to work.

Key Findings

Among low- and middle-income households carrying personal credit card debt:

  • Employment credit checks are normal. Among study participants that are unemployed, 1 in 4 states that a prospective manager has requested to test their credit file included in a resume.
  • Individuals are rejected jobs as a result of credit checks. 1 in 10 study participants that are unemployed have already been informed they wouldn’t be employed for the working task due to the information inside their credit file. Among job seekers with blemished credit records, 1 in 7 happens to be encouraged which they are not being employed for their credit.
  • Dismal credit is connected with home jobless, not enough coverage of health, and medical financial obligation. These facets mirror the bad economy and individual misfortune and possess small relationship with just how well employment applicant would perform at the office.