The country is trying to recover from recession, and it just seems more difficult for casualties of the economy. If you lose your job and try to find a new one, many employers will check your credit. It becomes a vicious cycle. Because someone loses a job, they fall behind in paying their bills. Then their credit score drops. They try to get a new job, but can’t because of the low credit scores. This New York Times article shows that nearly half of employers use credit reports to help in their hiring decisions:

A shoe salesman in the article lost his job and, with it his health insurance. He was injured and the medical bills piled up. He ended up in bankruptcy. This bout of bad credit cost him some jobs. He did end up getting a job, but it took a long time. The trend now, because so many people who suffered from the recession are having a hard time getting jobs, is that many states are passing laws that limit employers’ ability to pull credit reports on job seekers. This should help prevent people from being disqualified from a job just because of their credit.

Employers reason that a low credit score shows that the person would be less trustworthy. Studies have not shown that, though. A low credit score alone should not determine if someone gets a job or not. There are some jobs, such as high-clearance government jobs, or those in the financial industries, that rightfully require better credit. That will not change.

Hopefully, the economy will continue to improve, and more people will get good jobs. It is important to watch your credit and get help when you run into trouble.

Daniel J. Winter
BankruptcyLawChicago.com
Offices in Chicago, Oak Lawn, Gurnee, Skokie, and Waukegan, Illinois
djw@DWinterLaw.com
312-789-9999