But some firms bury the initial credit-search request -- usually just a signature line -- inside a hefty application, so that job seekers frequently aren't aware they're granting permission, said Adam T. Klein, an employment attorney with Outten & Golden in New York. He said companies often don't inform prospects if their lousy credit was what got them rejected.
"And so you have sort of a hidden problem," Klein said, "a very clear pattern of using credit score and credit history for employment suitability [and] almost no information available to the applicant who was denied employment based on that."
He and others question the usefulness of such reports. There's no clear correlation between credit history and job performance, according to a 2003 study by Eastern Kentucky University.
And the dossiers are prone to errors. More than one-third of companies surveyed by the Society for Human Resource Management in 2004 said that they found inaccuracies in the credit histories they pulled on job prospects.
"As an employer, you may be shooting yourself in the foot," said Deb Cohen, chief knowledge officer at the industry group.
Connecticut, Hawaii and New York have bills in play in their state legislatures that would restrict pre-employment credit checks. Employer groups in those states aren't happy.
"It's a step in the wrong direction at one of the worst economic times for employers," said Kia Murrell, labor and employment counsel for the Connecticut Business & Industry Assn. "True, your ability to type has nothing to do with your ability to pay a MasterCard bill, but credit references should be available as one of many factors used to evaluate you."
But to desperate applicants, a blemished credit check can mean the difference between continued struggle and a job offer.
A year ago, Denton had a solid credit score above 700, according to old Experian reports. But now, for the first time in their lives, he and his spouse are out of work.
Their Menifee, Calif., home plunged $250,000 in value. The couple are preparing to move into a trailer and are living on less than $1,000 a month in unemployment benefits.
"You think there's no chance of being out of work more than a month," Denton said. "But as it drags on, we're just completely in the bunker."
The couple's savings lasted three months. Although Denton said he tried to work out payment plans, at least three of the couple's credit cards are now in collection. Interest rates on others have soared.
Meanwhile, he has agreed to at least a dozen credit checks, knowing that recruiters won't find much that's flattering.
"My wife's credit destroys mine and mine destroys hers," he said.
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tiffany.hsu@latimes.com
