Employers Asking For Credit Checks

[AlexCrowley 0]

Rebuilding credit is pretty simple. It just sucks in the short term.

(I base this on having to build a credit record since coming to this country)

TV's got them images, TV's got them all, nothing's shocking.

[christoofar 0]

Some things to think about:

MVR/CLUE reports: Usually contain accurate information with certainty. CLUE is kept more up to date, MVR depends on which state is doing the reporting. Some states are very slow to update their records.

Drug screen: Usually accurate with a statistical certainty, with noted and documented exceptions (for particular medications). Some labs have been found to report false positives for a variety of quality issues and have been sued.

Background (criminal) checks: Always contain accurate data (that's present), but often is missing crucial details and can also omit data. For example, if you commit assult and rape at age 17, a future employer probably won't be able to see this. Employers must also be careful about their questioning because a felony in one state could be a misdemeanor in another state (battery is an example).

Credit Checks: At minimum 25% of people who ask for a copy of their report go back and contest items contained within it (WSJ).

Consumer reports are much more likely to be incorrect than the other checks. If you pass on flying colors (i.e. no traffic violations, no criminal record, no claims filed with insurance companies, no drugs found in your pee)... now you have a new test to pass, although you can bar checks on your credit by raising an fraud flag on your report.

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I'm RICK JAMES! Fo shizzle.

[unformed 0]

Having debt is not the same as having bad credit. Bad credit is when you don't pay off debt.

Having a lot of debt, but still making payments on it consistently gives you very *good* credit, even if you owe hundreds of thousands of dollars.

Even the federal government's secure jobs (require serious background checks) recognize the difference between debt and bad credit.

They also recognize the difference between student loan debt and debt racked up because of recklessness.

This ad space for sale.

[SkyDekker 1,121]

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If you are laid off from Enron and also suffer from lupus (thus you rack up a ton of unpaid medication and hospitalization), should that disqualify you from employment for the remainder of your life?

That is why many other countries have a social network to help in those cases. Americans tend to call that socialism or communism (which are both wrong, but what the hell) and generally don't want to pay taxes for it. The American culture seems to be more built around the concept of survival of the fittest. Hence, if you happen to get laid off and have lupus....too fucking bad.

[NWFlyer 2]

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Having debt is not the same as having bad credit. Bad credit is when you don't pay off debt.

And, in fact, the irony is that student who doesn't need to take out loans for college and who has never had a credit card or any type of consumer loan in his or her name may be considered a higher credit risk because of the lack of any kind of credit history than the student who graduates with a mountain of student loan debt and maybe a credit card or two with a moderate balance (but with all accounts current and paid up).

[unformed 0]

yeah, exactly ... what they want is consistent payments ... even if it's only ten dollars a month ... it shows you're trying to pay it off.

This ad space for sale.

[AlexCrowley 0]

As an immigrant I struggled with the lack of credit history.

It's amazing how quickly your rating increases once you get beyond that initial negative rating due to it's length. And how many hundred points it leaps seemingly overnight.

TV's got them images, TV's got them all, nothing's shocking.

[SkyDekker 1,121]

When I first moved to Canada, I could not even get a cell phone, cause I didn't have a credit history.

I was told that no credit history is even worse than a bad one.

[christoofar 0]

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Rebuilding credit is pretty simple. It just sucks in the short term.

(I base this on having to build a credit record since coming to this country)

Meh. I already have credit and I'm paying stuff off on a regular bases. My problem is that my loans make me look way over extended. And it's true, about 1/4 of my income goes to pay debt, all of which is current.

There is action moving in consumer rights circles to force the credit bureaus to stop access from a consumer record should the consumer put a fraud flag on the account. Currently, this only slows the process of opening a new account in your name. But if timed appropriately, you can use the fraud flag to deny employers access to your credit file while you are seeking work.

You know, if the medical information protection (HIPAA) didn't exist, how long would it be before employers deduce that if you have been treated for an STD before that you are not fit for employment? Does that seem fair to you? Tough beans you say?

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I'm RICK JAMES! Fo shizzle.

[christoofar 0]

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If you are laid off from Enron and also suffer from lupus (thus you rack up a ton of unpaid medication and hospitalization), should that disqualify you from employment for the remainder of your life?

That is why many other countries have a social network to help in those cases. Americans tend to call that socialism or communism (which are both wrong, but what the hell) and generally don't want to pay taxes for it. The American culture seems to be more built around the concept of survival of the fittest. Hence, if you happen to get laid off and have lupus....too fucking bad.

Ugh, in America 10 years ago... if this DID happen to you, you COULD get a job. Now, you may or may not (and in the long run, you won't).

____________________________________________________________
I'm RICK JAMES! Fo shizzle.

[christoofar 0]

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Having debt is not the same as having bad credit. Bad credit is when you don't pay off debt.

And, in fact, the irony is that student who doesn't need to take out loans for college and who has never had a credit card or any type of consumer loan in his or her name may be considered a higher credit risk because of the lack of any kind of credit history than the student who graduates with a mountain of student loan debt and maybe a credit card or two with a moderate balance (but with all accounts current and paid up).

My accounts are all paid up, but when I was laid off several years ago, I obviously could not pay anything off for a while... my #1 priority was paying rent and I did that out of retirement accounts until I was working again. So my score went way down. I also have revolving debt, it's current and most of the accounts are paid off, but still I look overextended to creditors. I looked VERY bad when I was making 60,000 dollars a year, of course it doesn't seem so bad when I am earning 101,000 a year.

FYI, my FICO score is 601. The nationwide average is somewhere in the middle 600s.

____________________________________________________________
I'm RICK JAMES! Fo shizzle.

[AlexCrowley 0]

I understand your predicament (been there, done that, got the hell out of there asap).

As far as 'fair'. Who said it was fair? The average US citizen tolerates far more than the average European, but you guys laugh at how socialist they all are and how inefficient and how much greater the taxes are (real world: no fucking difference, i pay far greater taxes in the US - difference: i have more toys, same standard of living though - but lots more stress).

I dont want to make this a 'US vs the world' thing. But all those things that cause people to scoff about how fucked up and close to communism that Europe is is the reason why they have privacy and aren't fucked over by their employers and big business on a daily basis.

And those that would defend the US by saying that the above paragraph isn't true have truly missed the point and the truth.

TV's got them images, TV's got them all, nothing's shocking.

[Gravitymaster 0]

I think you are missing the point. Bad credit in itself doesn't mean someone will commit a crime. It does, however indicate someone's level of maturity and sense of responsibility which is important to an employer.

Additionally, as an employer, you don't want to have to deal with the hassle of collection agencies calling the business, court orders for wage garnishments, complying with IRS tax leins etc. If I had 2 equally qualified candidates and one had good credit and the other one didn't, I can tell you who I'd hire assuming everything else was equal.

[christoofar 0]

To add insult to injury, I just got one of those "free credit-monitoring offer" things from BofA today which I get at least 3x a week.

Ok, I'll type just ONE pertinent paragraph from the back of the letter...

If you decide not to keep your privileges beyond this one-month trial, which begins when you receive your membership kit, simply call 1.877.488.0086 to cancel. You will have paid nothing and owe nothing. Unless you call to cancel, Bank of America PriveSource service will automatically extend your membership for an additional eleven months at the $129.99 first year's Bank of America PrivacySource membership fee. Your membership will be automatically renewed at the $139.99 annual membership fee for the second year, and renewed at the then-current fee each year thereafter, billed to your Bank of America credit card account, without your having to do anything further, for as long as you wish to remain a member.

Oh, I can't stop laughing. This company was plastered over CNN for losing data tapes that had millions of consumer records on it. Now they want me to fork over money to monitor my credit for identity theft.



I am slapping a fruad flag on all my credit reports first thing tomorrow. I'm gonna see if this will block an employer from getting access to it.

____________________________________________________________
I'm RICK JAMES! Fo shizzle.

[christoofar 0]

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I think you are missing the point. Bad credit in itself doesn't mean someone will commit a crime. It does, however indicate someone's level of maturity and sense of responsibility which is important to an employer.

Additionally, as an employer, you don't want to have to deal with the hassle of collection agencies calling the business, court orders for wage garnishments, complying with IRS tax leins etc. If I had 2 equally qualified candidates and one had good credit and the other one didn't, I can tell you who I'd hire assuming everything else was equal.

Yes. And let's also prefer hiring those who pay mortgages instead of rents. Obviously, you are non-committal to our corporate goals if you can't committ to a place to live.

Do you gamble? I'm sorry, we prefer not to hire anyone in accounting who gambles. We'll need to see a copy of your 6 prior tax returns to see if you filed any W-2Gs.

Who said anything about a socialist state? You get the same with fascist, too.

____________________________________________________________
I'm RICK JAMES! Fo shizzle.

[Gravitymaster 0]

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I think you are missing the point. Bad credit in itself doesn't mean someone will commit a crime. It does, however indicate someone's level of maturity and sense of responsibility which is important to an employer.

Additionally, as an employer, you don't want to have to deal with the hassle of collection agencies calling the business, court orders for wage garnishments, complying with IRS tax leins etc. If I had 2 equally qualified candidates and one had good credit and the other one didn't, I can tell you who I'd hire assuming everything else was equal.

Yes. And let's also prefer hiring those who pay mortgages instead of rents. Obviously, you are non-committal to our corporate goals if you can't committ to a place to live.

Do you gamble? I'm sorry, we prefer not to hire anyone in accounting who gambles. We'll need to see a copy of your 6 prior tax returns to see if you filed any W-2Gs.

Who said anything about a socialist state? You get the same with fascist, too.

Those things come later as you move up the coporate ladder. Like it or not, that's the way it is and has been for a long time.

Would you believe people are actually hired sometimes because of their race or sex over a more qualified candidate?

[peacefuljeffrey 0]

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...I got mad and decided to fire off a nastygram to the Pennsylvania state legislature and to Congress. Feel free to use this letter (modify it for your state and sen/rep) if you feel the same way...
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

Not a bad stragtegy, but it's way too long.

And you don't want to mispell, "blatantly" like that. (Although I doubt most congressmen's aides will notice.)


-Jeffrey

-Jeffrey
"With tha thoughts of a militant mind... Hard line, hard line after hard line!"

[christoofar 0]

Quote

Quote

...I got mad and decided to fire off a nastygram to the Pennsylvania state legislature and to Congress. Feel free to use this letter (modify it for your state and sen/rep) if you feel the same way...
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

Not a bad stragtegy, but it's way too long.

And you don't want to mispell, "blatantly" like that. (Although I doubt most congressmen's aides will notice.)


-Jeffrey

I think I fixed it before I sent it out. I had to modify it for the different address. I'll bump this thread when I hear back from the aides.

____________________________________________________________
I'm RICK JAMES! Fo shizzle.

[christoofar 0]

While looking at my latest Experian report that the employer who denied me the 2nd interview for (they were kind enough to send it to me VERY FAST after I emailed them a copy of the FCRA clause which states I have a right to the copy of the report they pulled)... I looked at the record and noticed that:

- They can see two other companies that are COMPETITORS which I interviewed at. (yup, employer inquiries show on your credit report and they DO count against you.)
- They know I have DirectTV and judging by the amount on the account, they know I have the extended package to get at the sports channels
- They know I workout at Bally's
- They know I like to shop at H&M
- They know I own at least something from Dell computer (possibly a PC or laptop) worth two-thousand dollars
- They know the make/model and VIN of my car (it's on the report, can you believe that?)
- They know I have closed a lot of revolving debt accounts

____________________________________________________________
I'm RICK JAMES! Fo shizzle.

[PLFXpert 0]

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And, in fact, the irony is that student who doesn't need to take out loans for college and who has never had a credit card or any type of consumer loan in his or her name may be considered a higher credit risk because of the lack of any kind of credit history than the student who graduates with a mountain of student loan debt and maybe a credit card or two with a moderate balance (but with all accounts current and paid up).

True, true--but usually as far as taking a car loan or mortgage, you can get around the "risk" factor by providing proof of other things paid on time: ie: letter from your landlord rent is always paid in time/in full, utility bills, etc.

The theme to both stories is accounts current, paid on time, in full on a routine basis.

Paint me in a corner, but my color comes back.

[PLFXpert 0]

I understand your point

But, rich doesn't make perfect, please remember. I have a lot of other *issues* as a result of my upbringing. I chose to focus on the positive as much as possible.

But, this information is so readily available not just from daddy, or if you happened to catch my speeches in college, but on the web, in a library, bookstore. It's not rocket science. It just sucks

Paint me in a corner, but my color comes back.

[AlexCrowley 0]

ah hell, i understand that too.

I realize it's readily available, but remember that for your family it's considered natural to grasp those concepts. If you're never exposed to how a hammer works and someone gives you a hammer later in life how do you know what to do with it?

TV's got them images, TV's got them all, nothing's shocking.

[PLFXpert 0]

Umm, didn't apes figure out how to bang a hammer when given one among a few other tools as an experiment?

Edited to add:

I hear what you're saying. Time for a drink

Paint me in a corner, but my color comes back.

[AlexCrowley 0]

never hand me a hammer and you'll not have to find out what I meant

DRINK!

TV's got them images, TV's got them all, nothing's shocking.

[PLFXpert 0]

<---just thankful you changed the clown avatar. Clowns give me the heebie jeebies

Paint me in a corner, but my color comes back.