Before my mom started working for her credit union in California, the employer asked to review her credit history. My mom had never been asked for that, but she went along with the request and thankfully passed with flying colors.

But now a story in the Los Angeles Times today reports on how credit checks are becoming more commonplace at companies before making hiring decisions. In fact The Society for Human Resource Management says up to half of employers run credit checks on prospective employees. The reason? Some employers strongly believe how well you manage your finances provides clues about your personal character and stability. If you’re stressed out about money and if you’re behind on payments it may signal you can’t handle responsibility from 9 to 5, that you’ll slip on the job. Your stress over money may affect your productivity at work, your ability to manage or perhaps worse – it may lead to theft, which costs companies billions annually.

Companies that are more likely to require credit checks are those that provide access to money, valuables or top-secret information such as banks, financial institutions, jewelry stores and government agencies.

Some would call it a viscous circle. You need a job to become financially stable but your money mistakes are preventing you from getting a job. And it totally seems unfair, right? What does your overdue Visa statement have anything to do with your ability to manage a team or type 70 words a minute? I haven’t seen any reports showing correlations.

Here’s my advice. I’ll be on Fox News with Neil Cavuto going over these tips later today at 4pm.

1. Review your credit report first. Check for any errors. Get free reports at annualcreditreport.com.
2. Be honest with employers. If you have any red flags, be honest and upfront with the interviewer and let them know what happened and how you’re improving the situation. It’s a good way to show you’re being honest and you’re not one to try hide anything. If stains on your credit history are related to divorce, medical bills or ID theft, make sure to provide those clarification. If you’re getting credit counseling, mention that too.
3. Know your rights. An employer must have your permission in writing to check your credit report. Of course, saying NO to a request for a credit check can work against you, but if an employer checks it without asking for your permission they’ve broken the law. Employers are not allowed to discriminate applicants based on any history of bankruptcy. And employers must tell you if your credit report was cause for not getting the job.