A new survey says 60 percent of employers run credit checks on potential hires, as opposed to 42 percent in 2006.

Companies say credit checks provide insight into a person's character and work ethic. Many job applicants disagree.

Andrew Hudson who runs Jobslist.com -- a metro-area job finding Web, disagrees with the practice of using credit reports as a hiring tool.

"Employers who are using credit ratings as a way to disqualify people across the board, it's very unfair in particular in this day and age," Hudson said. "You can't get another job because your credit rating has taken a hit while you're unemployed … and now employers take a look at that credit rating and won't hire you."

Jim Tovrea has been unemployed for six months after a debilitating car accident. He said late payment of his numerous medical bills caused his credit rating to suffer, and that cost him a security job last week.

"I asked if it had anything to do with the credit report, some eyes lit up," Tovrea said.

Meanwhile, several states are proposing laws to ban credit checks by non-financial employers. A similar bill was introduced last year in Congress. That bill is still stuck in committee. But until further action is taken, job seekers will continue to be haunted by their past credit history.
 

Read More at cbs4denver.com