America is historically known as the land of opportunity; a place where any citizen can pull him or herself up by their bootstraps and attain the American Dream. With talks of a recession and continued economic cutbacks, a standard credit check holds more weight than ever for both companies and new applicants.

Traditionally, credit checks serve as an important preventative measure for companies. They can avert poor hiring decisions, which have the potential to degrade a company’s budget, standing, and future business. A survey by the Society for Human Resource Management (SHRM) found that 92 percent of surveyed employers conduct employment background screening!

Credit checks in the hiring process are said to determine an individual’s sense of responsibility. The thought is that people with debt/credit problems may be more likely to steal or commit fraud within the company, even if the position doesn’t directly involve money.

But many American’s credit scores have been affected by unforeseen job loss and lay offs through no fault of their own. In addition, the recession caused many Americans to feel financial pressure, including those that had stellar credit reports prior. Beyond employment, numerous prospective employees are underwater with their mortgages, behind on car payments, and are maxed out on their credit cards. This does not bode well to their chances of landing a job. We must ask: are the past few years of economic turmoil being considered as companies increase the weight of credit checks?

Today, credit checks in the hiring process have never been easier to perform. But just because the checking is easier, does it mean it should be done?

We have to wonder, are credit checks ultimately hindering the American Dream?