While this is an old story it's also still a problem.
About 6 months ago I read a similar story about business's using the credit reports as a guide to see if a prospective employee would steal or not. The idea being that the better your scores the less likely you are to embezzle, or steal from your employer.
I didn't think about it at the time and forgot about it.
Then my neighbor was turned down for a job based on her credit.
She lost her job a while back (over a year ago), and instead of getting a new job right away, took the severance package and enjoyed some time off from working. By the time she was ready to work again, jobs in her field were hard to come by. After being off for so long and no longer having the severance package to help pay bills, she started falling behind with her bills. Her mortgage company, seeing all the Fed money, refused to refinance the home since she doesn't have a job and started the foreclosure process. She finally found a possible job, and was told that pending a "background check" the job was hers.
By getting this job everything would be golden for her. She could pay her bills and then refinance the house. The problem was that she didn't get the job. The reason was due to the foreclosure on her house. That showed up on her credit report.
So here's the rub. Can't stop foreclosure without a job, can't get a job due to the foreclosure.
Granted, it's her own fault for not getting another job so soon after being unemployed, but I've seen dozens of folks do the same thing. You get a large payout and take a vacation.
I wonder how many other people are caught up in the same sort of issue?
You want to work, but can't due to the credit report, but if you had the job, you could resolve the bad credit report.