Credit Reports affecting African American job opportunities

According the EEOC Kaplan Higher Education Corporation has been discriminating nationwide against black job applicants because of their credit history. As a result the U.S. Equal Employment Opportunity Commission (EEOC) has filed a law suit against the provider of post-secondary education.

According to the EEOC this rejection of black applicants has been taking place since 2008. The EEOC claims this practice is unlawful and is discriminatory because there is no justification of this of this process based on Kaplan’s business necessity.

Most companies that look at your credit report during the hiring process usually do so for positions that handle money or have access to personal information. Keep in mind that during the employment screening process they do not look at your credit scores. Now your credit scores and credit report information do go hand in hand. So the company looking your credit report will ultimately have an idea your scores are poor if you have a history of credit issues. So the FACT that employers don’t look at your credit scores in my opinion does not really matter. Bad credit is bad credit…..

This practice of hiring based on credit history is somewhat controversial. Being a business owner I have the tendency to agree with the employment screening process. The question always arises…. “How can you be responsible in the work force if you have a history of being irresponsible with your personal credit history?” So bottom line is your personal matters will affect your worth ethic. How can you come to work with a clear mind if your financial matters are in distress I guess is the point here.

According to the Federal Reserve black Americans have worse credit than white Americans. I am not sure why this is the case, but evidently it’s a problem amongst the black community.

The Fact of the matter is whether you are black or white your credit report is being looked at during the employment screening process. With the case of Kaplan the EEOC needs to prove that they have been discriminating against blacks and have singled them out during their hiring process.

Regardless of this controversial hiring process your credit report is no secret anymore. Somone will require you to provide your history of responsibility whether you are Hispanic, African American, Chinese or White American.

Bottom line, if you are staying on top of your credit report the issue of credit will never be a problem during the hiring process. Like I have been promoting all along, credit education is crucial during such bad economic times.

You have a right to your free credit report once a year from all 3 national credit bureaus. Go to to get your copy.

Author: Mike Clover

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