Credit check can be a barrier to job or promotion

Comments:  | Leave A Comment

crowellcutout.jpg

CHARLENE CROWELL

 

(NNPA)—As Black America continues to struggle with high unemployment rates, a new research report by Demos, a public policy organization titled, Discredited: How employment credit checks keep qualified workers out of a job, unveils how the use of credit history in employment decisions is often leaving people of color in the unemployment lines.
Among employers with fiduciary responsibilities, it is a long-standing practice to include credit reviews in hiring decisions. Banks, credit unions and similar employers should be careful in handling others’ money and deposits. But the Demos report found that employment credit checks now are becoming standard operating procedures for many employees without such responsibilities. In these instances, disproportionately screening people of color out of jobs can lead to discriminatory hiring.
With higher rates of unemployment and the additional burden of wealth disparities, many African-American and Latino households have a greater need to borrow for emergencies and are also at a greater risk for foreclosure or loan default.
Surveying nearly 1,000 low- and middle-income households with credit card debt, Demos found that people of color are disproportionately likely to report worse credit than Whites. Even for employed persons seeking a promotion at work, credit scores can be a factor in deciding which employee will get the better job.

1 2 Next page »

Comments

blog comments powered by Disqus
Follow

Get every new post delivered to your Inbox.

Join 9,237 other followers