Consumers Need Good Credit for Low-Paying Jobs
Why is a credit service business necessary more than ever? Well, there is proof that you now need good credit for a low paying job. Despite the massive loss of jobs, with Americans behind on their mortgages and the foreclosures crisis this country has faced, the practice of doing credit checks on prospective employees continues to climb sharply in popularity.
The Society of Human Resources Management's recent survey found that 60% of employers run credit checks on at least some job applicants.
When the economy was considered healthy in 2006 the figure was 42%. Employers in this weak labor market are becoming more selective about whom to hire. Credit checks are a fast and cheap way to screen out candidates.
And 1 in 8 employers checks the credit of every applicant for every job, meaning that people like janitors and retail workers can suffer employment discrimination on the basis of their credit score.
On the ground every day, the real job-killing happens at the individual level, when a person trying to climb out of financial trouble is told that they are not hired because of their poor credit in the past.
While everyone is arguing about the pros and cons; consumers need to make sure that they stay on top of their credit or it can and usually will, cost them a job.