This post is by OK Policy intern Lydia Lapidus. Lydia is a recent graduate from George Washington University’s Elliott School of International Affairs with a concentration in International Politics.
When applying for a job, you might scan your social media profiles and hide or delete any off-putting posts that an employer could see. But what if they look at your credit report? You can’t hide the credit card payment you missed several years ago. Though credit reports were originally designed to help banks determine interest rates on loans, nearly half of all American companies now use credit checks as an employment vetting tool. Job applicants with good credit reports are viewed as responsible; those with poor credit reports may be discarded as unreliable or likely to steal from their employer.
That’s unfortunate, because using credit reports during the hiring process ends up unfairly screening out low-income people and minorities, and it keeps qualified candidates out of work and talent out of Oklahoma’s workforce. A person’s credit history, or lack thereof, says nothing about their work ethic, trustworthiness, or potential job performance. It can, however, reflect the financial misfortunes of long-term unemployment, lack of health insurance, and medical debt. So far, eleven states have passed laws either restricting or prohibiting the use of credit reports in employment decisions; Oklahoma should join them.
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