Though a bad credit auto loan can be a life saver when your financial background is poor, it can also be a factor in deciding whether you are hired for a job. Luckily, there are nearly 50 bills that are attempting to restrict the use of one's credit history to determine if an applicant is fit for employment.
Many people are often left with a bad credit score because financial emergencies have caused great debt, especially in this recession. However, as consumers very well know, an unfortunate series of monetary events may not have anything to do with one's work ethic. Legislators are reportedly seeking to amend laws based on the current economic climate.
"Using a credit repot to make a hiring decision is essentially making a value judgment," Beth Givens, director of the Privacy Rights Clearinghouse, told USA Today. "The employer is saying, 'I think you're an irresponsible and careless person because you have a bad credit report.'"
If the bills are passed, it could make the job-hunting process a bit easier for some, which would ultimately allow individuals to pay back their car loan, mortgage and credit card to boost their FICO score.