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My next guest says new -- in California which banned some employers from obtaining credit reports.
On people who apply for jobs getting a lot of attention John Alzheimer if the president.
He's smart credit dot com -- on the back of the show you know we follow this very closely his people worry.
That employers are always looking at their financial records before they hire because look like people in the last few years -- at financial issues problems.
And they need that job and maybe it wasn't there all that they had those difficulties.
How common it this.
Well Jerry it's like it's a lightning rod topic -- consumers by and large hate.
The practice of credit report screening for employment -- purposes.
It is fairly widespread especially if you're looking for a job and yet there are.
The financial services market or you're looking for a job that it exposes used the employee.
Two information it can be used to commit identity theft or fraud other than that it's eased but not as ubiquitous as and those two industry.
You know -- we had some information that -- might as many as 60% of employers.
Use this screening which is a pretty big number you have to admit.
California -- not -- her banning it but you know making it difficult more difficult for employers to use another seven.
States are doing the same thing if it's gonna become widespread now I think.
Generally when California -- something like that's of the other states tend to follow which is why this is such a big deal.
I'm what the debate essentially done is to set -- Bob model stat -- That other states can now copy it seems to be very very fair it's certainly not aggressively against employers.
And it's certainly not aggressively against consumers it seems to fall right in the middle -- -- should be happy about it.
You -- and I thought was really interesting -- it's not a qualification.
Issue it's a responsibility.
Issue what do you mean.
While it's you know employers want to take a step test -- their perspective employees it's not about.
You being qualified for a job at five qualified for -- job unqualified for job whether I've got big credit or bad credit.
It's the whether or not the employer wants -- now take a risk on me and invest in me and become potentially liable.
For my actions as an employee I think it's completely valid.
That they do these types of backers say look through this is not the most invasive thing that happens when you're trying to apply for John out of the you -- -- -- a cop.
You had your background screen for criminal education this is just financial background.
It's got it is amazing the kind of screening they do these days archive that background reports that you never in our changing hands when you apply for -- job.
Throughout the advice would you give to somebody out there -- who may have had some financial issues in the past and maybe because of this massive downturn not through their own fault.
What should they do when they're applying for -- -- they fess up about that ahead of time.
While what this underscores.
The reason for always having good credit not just when you're looking.
For a loan or insurance yeah absolutely you have one chance one chance to lecture and -- your perspective employer now.
Had a -- you're gonna see something that my concern you let's talk about and let me explain what you don't wanna do is you don't want to avoid it certainly don't want to lie about it describe reports tend to be accurate.
Because it it unlike in the lending world where you're just one of a million people applying for something on a daily basis.
In the employment world you do have a one on one relationship with someone -- human resources are an honor or you can't discuss these things a lot.
They're trying to fill -- position you're trying to be the person to fill the position.
They wanna hear the explanation but if you give them nothing and -- have just the slight wants to go by and they're gonna look at somebody else that that's gonna disqualified.
Well -- it pays to plan ahead that's for darn sure and I know people are very concerned about this space for explaining it breaking it down for -- John we really appreciate it.
You bat I try.
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