Nebraska could halt credit report checks for job applicants

In recent years, employers have begun to factor in applicants' credit reports before making hiring decisions as a way to assess whether a potential employee is a risk.

However, a new law in Nebraska could leave fewer consumers in the state with a need to contact a credit repair company for this reason, as it would outlaw using credit histories during the hiring process.

The bill would add checking credit reports to Nebraska's list of unlawful employment practices, except when it specifically relates to the job being applied for, The Associated Press reports. However, maintaining the health of these documents is still an important factor in obtaining credit cards, loans and insurance policies.

Having a low credit score is a direct cause of higher interest rates on these payments. As a result, a person who is stuck with a high interest rate because of an error on his or her credit report could have to pay thousands of dollars more over the life of the loan.

Contacting a credit lawyer may improve a consumer's chances of settling a dispute quickly.