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Did You Know That A Bad Credit Report Could Keep You Unemployed?

March 06, 2013 0 comments

by Kirk Carlson

Personal Debt

Credit reports are used more and more

Employers are now using credit checks more and more and this has kept many Americans out of work, which has contributed to the country’s joblessness and maybe even fostered discriminatory hiring practices. This is according to a new report by Demos, the New York-based advocacy and policy organization. The Catch-22 here is that bad debt keeps people from getting jobs, which makes it impossible for them to pay off their debts and get a job.

1,000 people interviewed

Demos interviewed more than 1000 low- and middle-income households that had been carrying credit card debt for three months or more. Among those applicants who were also classified as having poor credit, one in seven were told they could not be hired due to their debt.

Why many of them were struggling with debt

Despite what the credit card companies might think, these people were not having a problem with debt because they had been unable to handle credit. Most had gone into debt during the recession while others had big medical bills or children to support.

You may not be told

One of the other problems with these credit checks that makes them dangerous is that employers may not even tell people that they’re not being hired because of their credit reports. A prospective employer could tell an applicant why he or she is not being hired for one of many reasons without ever revealing that it was because of bad credit.

A dangerous trend

Steve Cohen, a Democrat representative to Congress from Tennessee has pointed out that the use of these credit checks is a dangerous and growing trend. As a result, he cosponsored an act called the Equal Employment for All Act that would prohibit employers from making credit checks in most cases. Plus, it would require employers to tell an applicant if his or her credit report had anything to do with the decision to hire that person. Cohen pointed out that this has created a special interest group that is fighting this legislation because the credit-check people profit from it.

Where to turn 

If you’re having a serious problem with debt – whether it has anything to do with being hired or not – there are ways to get help. Since you might have a problem getting a debt consolidation loan, especially if you’re unemployed, consumer credit counseling might help. There is possibly a credit-counseling agency in your town. If not, it’s easy to find one online. Just make sure it’s a nonprofit. The reason for this is because nonprofits either offer their services free or at very low cost. Once you sign up with one of these agencies, you will be assigned a debt counselor who will help you create a debt management plan (DMP) that should get you out of debt in about five years. If you could tell a prospective employer that you have a DMP and were in the process of getting your debts paid off, this might actually help you get a job.

We may be able to help

It’s also possible that we may be able to help. Our debt settlement providers have helped thousands of families reduce their debts and become debt free in 24 to 48 months. We offer a simple 100% satisfaction guarantee so you have nothing to lose by letting us try to help you.


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