The Importance of Knowing Your Credit

By: Salina Greene, Outreach Coordinator, NHS of Baltimore

As many Americans are facing unemployment, landing a job in this tough economy or keeping one is a challenge within itself. Many are discovering that their past credit problems are affecting their current job search. In some instances, job offers are rescinded. Critics say personal credit is one more barrier that hinders economic recovery. Nowadays, many people have tarnished credit after they lose their jobs and struggle to make ends meet. On the other hand, past credit histories are affecting even more people as employers are becoming more strict in their hiring processes. The reason behind this is the massive surge of job seekers in relation to available jobs. This process has stirred a movement amongst advocacy groups supporting consumers and workers.

In Maryland, lawmakers are lobbying for a new legislation to be put in place to ban credit checks in the hiring and firing processes. This new law, if passed, will not affect financial institutions that are required by law to run credit checks. While other states are considering lobbying for similar laws, legislation is under way in Congressional meetings. If passed, creditworthiness would not be a factor in employers hiring or firing employees. In many ways, this is a positive move as credit reports can contain errors and lead to discriminatory judgments against a worker’s abilities. Some argue credit checks are necessary to assess risks critical to many business owners. Stuart K. Pratt, president and CEO of the Consumer Data Industry Association stated, “Key indicators of potential fraud were employees living beyond their financial means and employees experiencing financial difficulties”. One of the ways not get into financial straights is to become educated in financial matters before it becomes too late.

You are able to review your credit report for free once a year through: www.FreeCreditReport.com. During this period of recession, it is of the utmost importance to manage your resources well. One way to do this is to attend one of our Financial Fitness Workshops at Neighborhood Housing Services of Baltimore. If you are unable to attend any of these classes, we are holding an event April 17th, 2010 at Pleasant Hope Baptist Church, surrounding issues related to consumer responsibility. We will be able to pull credit reports during this time for a nominal fee. Please contact us at 410-327-1200 for more information. Remember, knowledge is the key.