Employers Can Legally Refuse to Hire Applicants with Low Credit Scores
Visa USA has published results of a new survey that shows that "the vast majority of Americans do not know that a bad credit score is more than just a barrier to getting a loan - it may also keep you from getting the job you want." According to the survey, "only 20 percent of Americans know that it is legal for employers to refuse to hire job applicants with low credit scores. Fully 52 percent of Americans mistakenly believe it is illegal for prospective employers to use credit scores as a hiring criteria and another 28 percent of survey respondents are unsure."
Visa's survey also found that 42 percent of consumers 18 and older have never even checked their credit score and therefore can not know if they have a bad or good score. Men are significantly less likely to check their credit score, as are people over 55 years old.
"Credit scores have become the de facto 'GPA' for all aspects of modern life because they can affect everything from getting a job to being able to buy a house," said Jason Alderman, director of financial education for Visa USA. "A bad credit score can send an otherwise well qualified job applicant straight to the unemployment line."
Many employers have made checking a credit score a mandatory part of the job application process, just as drug testing and criminal background checks are now common requirements for jobs in many industries.
Visa released the survey results as part of a significant effort by the company to improve the financial literacy level in America. A major component of this educational initiative is Visa's What's My Score program, a free personal finance resource for college students and young adults.
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