According to the U.S. Labor Department, unemployment figures as of February 2010 states there are 14.9 million unemployed persons, with the unemployment rate remaining at 9.7 percent, virtually the same as the prior month.

The number of long term unemployed  (those who have been jobless for 27 weeks or more) was 6.1 million during this same time period and has been at that level since December.  This means about 4 in 10 unemployed people have been unemployed for six months or more.

It is somewhat discouraging to learn that more than 60% of employers are now running credit checks on some job applicants, which is up almost 46% since 2006.

According to a survey by the Society For Human Resource Management, it is playing in heavily in the decision making process as to whether to consider candidates for a position.

Even if you have a fantastic resume and excellent references, if you’d had a car repossessed or a judgment placed against you, there’s a good chance you won’t get the job.

Credit checks are fully legal.  But the process is questionable, and what was once thought only necessary for those employees who would be handling money, it’s now become a barometer for the likelihood of any further investigation of the applicant.

An employer has to ask for your permission to run a credit check. However, if you refuse, it will signal a red flag and you become a questionable candidate.   Credit card debt, late payments and repossessions are some the items employers may see in your credit report, and use them to determine if you are a good fit for their company.

You may feel that it is unfair to use this as a tool for hiring, as many less than stellar credit situations are sometimes just not your fault.  A messy divorce, loss of income, or an illness in the family are all situations where people have no control over the outcome, and are left trying to emerge from the ashes of their existing credit fires.

Lawmakers in 16 states have proposed legislation to outlaw most credit checks, saying the practice should be remain to be only for those employees who oversee or handle currency.

While it may not be popular, this screening tool isn’t new.  With the increase in identity theft and employee theft, companies are being much more diligent in their screening process.

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The bottom line is that if you have questionable credit reports and are looking for a new job, you should take immediate steps to clean up your credit file. You can dispute questionable credit items by mailing letters to the credit bureaus. Or, if you’re in a hurry to get a new job, you may consider hiring a credit repair service to help you get a fresh start. Get a FREE credit consultation with credit repair experts by calling 1-800-298-4297