Are You Being Discriminated Against Because of Your Credit History?

One of the more disturbing trends I've noticed gaining momentum with employers is denying employment based on credit history. More and more frequently, fully qualified people are being turned down for a job because of a low credit score.

And while this might make sense for a job managing money or handling large sums of money, it should have no bearing when it comes to other types of work. Some are even saying it's a civil rights issue. And I agree.

The Christian Science Monitor reports that "credit checks are a growing factor in hiring, with 35% of employers checking applicants' credit in 2003, up from 19% in 1996, according to the Society of Human Resource Management." And to make matters worse, applicants aren't always told why they've been denied a position, so they continue to apply for jobs they have little chance of getting.

Unfortunately, credit history is not only being used as a screening tool for employment. It can also be a factor in insurance rates. I know that I'm personally paying a higher rate for car insurance due to financial difficulties I had after my husband and I separated. Am I more likely than someone with a stellar credit report to be involved in a car crash or commit insurance fraud? No, I'm not. But there it is.

Denying those who need jobs most, based on past financial difficulty, is wrong. But it will only stop when enough people get mad and draw attention to the issue. If you feel you've been discriminated against in your search for employment, consider contacting the Equal Employment Opportunity Commission to file a complaint.