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Mar 31, 2008 3:57 pm US/Eastern
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College Loans Hurting Some Job Seekers' Chances
More Employers Checking Credit Score Before Hiring
BOSTON (WBZ) ―
Most students need to take out loans to help them pay for college, and ultimately get a good job. But many students, like Aubrey DeCarlo of Wayland, are ending up in a Catch-22. That's because those very loans could keep her from getting her dream job.
How can that happen? Carrying that debt can hurt credit scores, and more employers are now using those numbers to evaluate job candidates.
Aubrey says it's hard enough for a new graduate to get a job, and that this just creates a vicious cycle. In fact, two out of three students graduate with debt today; the average balance is $21,000.
Mark Kantrowitz of
finaid.org says surveying credit reports is a growing trend. Experts say that a credit report is an easy way to find out about an applicant's background.
"It becomes one of a tool of things they have at their arsenal when they're screening applicants for somewhat very competitive positions," said Curtis Arnold of
cardratings.com. "Graduates who are looking in certain fields will find their credit scores more likely to be scrutinized… Banking industries, government related jobs, police, fire, those types of jobs are pulling credit reports more and more."
Any applicant can ask that their credit score not be pulled, but that might send a bad signal. Arnold says an employer may think that a job applicant is trying to hide something. He says to check your credit score ahead of time, and if it's low, be prepared to explain why. "I would be up-front with that employer, the human resource department, just tell them about your personal situation."
In the meantime, try to keep your debt as low as possible and pay your bills on time. Still, it's not a situation that's making Aubrey DeCarlo happy. "I think it's really unfair that they can look at their credit information."
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