Also in this playlist...
This transcript is automatically generated
You know it's hard enough to get that job so imagine being turned down just because of your credit score.
For credit report in this case it's a growing debate raging in 25 states so even if you have the experience -- work history.
-- you miss out on a job because of your credit.
Here to help is Beth -- Director of privacy rights clearing house about the welcome -- the show great to have you here.
Thank you thank you very much are right so you say 66% of employers are using these credit reports to analyze people who were in the market place for -- job.
If that's -- I think to me like it's awfully intrusive.
Well it's more than intrusive you used the word fair and I think that's a good word to use.
Credit reports do not predict job performance a lot of credit reports have errors in them the great identity theft make mixed files.
And is also disparity our district disproportionate.
Impact on racial minorities and people with low incomes.
So it is just a bad tool to predict job performance and it's a bad tool for employers to be using and yet.
Everybody seems to want to use that what are they getting I mean really because.
So much of the information is incorrect in these things what are they getting that they think it's so valuable.
Well employers are very risk averse and they think that they have a tool that's gonna tell them what was going to embezzle.
You know if you have bad credit report supposedly you might.
You might want to steal from the company there's actually no proof in in in research studies to that effect they think that you.
You might be more -- Liable to do something that causes the company to be soon.
You know that they -- they're also using it for character review and I think that that's that's really wrong.
It's it's you Kerry diary your character -- yeah dirt.
Well were wording this worthiness director.
Sorry you're really sit on the advice here because.
I think this is one of those issues that really gets people fired up.
You know and we're sitting -- -- about whether it's fair but the reality is -- -- and employers.
Want to say I'm not hiring you because of this credit report they absolutely can do that legally in most states right.
That's correct actually -- nationally they can do that and in only four states have a law on the books right now.
And at I I realized that a lot of states are talking about changing that -- What do you tell people out there who are looking for a job any may have a bad credit report simply because they've been unemployed.
About how to prepare for this and how to deal with it if you have a bad credit report -- upfront with the employer do you tell them I have a time.
Yes you do tell them.
Used you tell them you know -- The reason that you have a bad credit report it could be.
Large medical bills death in the family.
Death of a spouse for example a divorce.
Loss of a job yet you know in this economy that's the main reason people have a bad credit report so it's best to be up front be up -- And they have to let you know that they're doing that's correct.
I mean isn't there something in all of that gobbledygook he's -- when you fill out the form that tells you they might do this.
Yes there is you actually have to sign a consent form.
To have this kind of background check done so you know that they that this will be done -- that could help you prepare.
And by the way you know you could say well I'm just not gonna sign the form but you probably won't get that job you absolutely have to sign up -- -- -- thanks for coming in.
It's a fascinating story something that we want to continue -- thank.
Filter by section