Put a Stop to This: Bad Credit? No Job for You!

Even as the economy is slowly turning around, the recession and financial crisis continue to take a toll on working families. Many of whom are hardworking, bill-paying people who have seen the credit ratings damaged when they or a family member lost a job or a small business and saw the value of their homes plummet. Savings evaporate and payments get missed. Says Warren:

Most people recognize that bad credit means they will have trouble borrowing money or they will pay more to borrow. But many don’t realize that a damaged credit rating also can block access to a job.

While at one time it was common belief that a credit history could provide insight into a perspective employee’s character, Warren says that recent research has shown that an individual’s credit rating has little or no correlation with his ability to succeed at work. A bad credit rating is far more often the result of unexpected personal crisis or economic downturn than a reflection of someone’s abilities.

She also says, “This is one more way the game is rigged against the middle class.”

A rich person who loses a job or gets divorced or faces a family illness is unlikely to suffer from a drop in his or her credit rating. But for millions of hardworking families, hard personal blow translates into a hard financial blow that will show up for years in a credit report.

People shouldn’t be denied the chance to compete for jobs because of credit reports that bear no relationship to job performance and that, according to recent reports, are often riddled with inaccuracies. Click here to become a citizen co-sponsor of The Equal Employment for All Act.

The bill is co-sponsored by Sens. Richard Blumenthal (D-Conn.), Sherrod Brown (D-Ohio), Patrick Leahy (D-Vt.), Edward Markey (D-Mass.), Jeanne Shaheen (D-N.H.) and Sheldon Whitehouse (D-R.I.).

Rep. Steve Cohen (D-Tenn.) introduced the bill in the House late last year.

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This has been reposted from the AFL-CIO.