Credit reporting companies that sell Americans’ personal data to potential employers have pushed the narrative that a credit history somehow provides insight into someone’s character. But, as even a representative from the TransUnion credit bureau admitted, they “don’t have any research to show any statistical correlation between what’s in somebody’s credit report and their job performance.” In fact, research has shown that an individual’s credit has little to no correlation with his or her ability to succeed in the workplace. Credit reports are not a way to screen out bad potential employees; they are just a way to discriminate against people who have fallen on hard times.”Despite facts, pushing this narrative isn’t hard to do when corporate America is already predisposed to believing that financial status and character go hand in hand.
For hardworking people struggling to make ends meet, the only way to get back on their feet is to find a good job and earn a paycheck. But even when they are able to sell their homes—often at a loss—or after they are forced to close their business’ doors or find temporary work, that bad credit history continues to haunt them.And despite the often-desperate effort to find a job, many employers are unfairly shutting the door on applicants with less-than-stellar credit. We should call this what it is: discrimination.