[Credit scores as a basis for hiring is] one more way in which the system is rigged.
If you’re rich and you get divorced, it’s not going to hurt your credit rating. If you’re rich and you have a medical problem, it’s not going to hurt your credit rating. If you’re rich and you end up quitting your job or losing your job, you walk out with a whole lot of savings, you walk out with a nice package. It’s not going to hurt your credit rating.
But how about families who work hard every day, who live a lot closer to the economic margin? Those are the ones who get hit with a problem, with a medical problem, with a job loss. And boy, it’s not only the hit, it’s the financial fallout from that hit. And here’s the deal: it stays on their credit report for seven years, in some cases even longer.
So what does that really mean? This is a problem that hits hardworking families who are struggling to get back on their feet. It’s not one that hits the rich, and I think that’s just wrong.
Elizabeth Warren, commenting on credit scores being a rigged way to deny poor people employment, as reported by Common Dreams. (via america-wakiewakie)
It’s also important to bear in mind just how much credit scores can vary based upon a person’s race. Not only do blacks and Latinos tend to have lower credit scores than whites, they’re also more likely to be turned down for a loan or have a higher interest rate even if they have the same score.
Using credit scores to deny someone employment is just another way that our current system prevents any sort of economic advancement for the wrong sort of person.
It’s evil. And it needs to stop.