There's something that many job hunters should know about, namely employment credit rating checks. Yes, they can keep an individual from getting a job. However, not every employer performs them, many overlook them and in some states, employer credit rating checks are illegal. Article resource: emergency payday loans bad credit

Most severe credit check bad for careers

According to CNN, liberal-leaning policy and research institute Demos recently released some findings from a survey of job seekers about job credit rating checks. Some weren't too encouraging.

There were 1,000 respondents surveyed by Demos that were in low-income and low-middle income households. It showed that one in 10 was denied a job depending on an employer credit check, and one in four had to do the check at al. The survey showed that people in retail and food industries, considered the low-level positions, were often the ones dealing with credit report checks.

Just because an individual had personal loans or car loans on their report of even just because of past troubles, people are being denied jobs. There is a 10 percent chance you will not get the job for this reason.

Not too many use credit report checks

About 65 percent of employers let workers explain concerns on their credit checks in the interview, according to Forbes, so it is not all bad. Only 34 percent of corporations run credit report checks on some applicants, and only 13 percent run credit report checks on all applicants, according to the Society for Human Resources Managements.

Only 14 percent of companies stated credit reports were the most essential factors in hiring decisions; 87 percent reported work experience was. Furthermore, according to CBS, about 80 percent of companies in SHRM's survey hired people regardless of bad credit.

Before a company can run a credit check, it has to ask for permission. A business may not like having someone who has embezzled money before, and clearly somebody with garnished wages might be considered a liability. These are the kinds of things an employer is trying to find.

Guard yourself

There are eight states as of 2012 that do not allow employer credit report checks, such as HI, Maryland, Oregon, Washington, Vermont, CT, California and Illinois. There are a lot of states considering bans on it too. A number of people do not like the idea and think an employer has no business looking at their credit.

Federal regulation has been considered also, according to CBS.

If an employer has made a hiring decision based on your credit check, they have to call and inform you of the choice. They also have to go over your credit rating with you in order to explain the issue. The Federal Trade Commission also points out that you can refuse a credit check, but an employer may not hire you simply because you refuse.

If you see any errors on your report, you need to dispute it. The employer is required to give you a copy of your credit report after denying you the position if you ask for it, and you can also get a free yearly copy of your report. Make sure you watch for errors.

Sources:
CNN
Forbes
Bankrate