SOURCE: Web Nation, Inc.

Web Nation, Inc.

April 19, 2010 09:00 ET

Bad Credit May Be Preventing Job Seekers From Finding Work

PHOENIX, AZ--(Marketwire - April 19, 2010) -  In this tough economy, the last thing a jobless person needs is another roadblock to employment. In a study done by Society for Human Resource Management, data reveals that 35% of employers are pulling an applicant's credit as a condition of employment. If you have bad credit, you may not get the job. Is this legal? Kristy Welsh, founder of, says it is. 

The Fair Credit Reporting Act (FCRA) says a person has a "permissible purpose" to use credit report information if it is in connection with credit transactions, insurance underwriting or employment decisions.

Is bad credit equal to poor performance by a potential job applicant? Welsh disagrees with this thinking. She argues, "Some bad credit is due to living off credit cards after families deplete the previously touted 'safety net' of six months of savings. If you've been out of work for as much as two years, not only has emergency cash disappeared but your 401k may be gone. People are now choosing between eating and making credit cards payments. It's incredibly unfair to prevent someone from finding work when their credit problems were caused by extended unemployment."

Ms. Welsh isn't the only one who thinks using credit report information to profile applicants is unjust. She points to a new law in Oregon taking effect on July 1, 2010. Oregon Senate Bill 1045 prohibits employers from considering for employment purposes any information that bears on a consumer's credit worthiness, credit standing or credit capacity, unless such information is substantially related to the individual's current or potential job.

About is a one-stop destination for consumers looking for free advice and tips on how to repair and rebuild bad credit and maintain good credit. founder Kristy Welsh is also the author of Good Credit Is Sexy, a tongue-in-cheek guide to managing your finances.

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  • For Press and Media:
    Kathleen Richards
    Web Nation, Inc.