credit history & employment

[Dusterndart340]

Let's say you are the employer and two applicants are both good fits but one has a bad credit score; what do you do?

Most employer's must be very careful in hiring for many reasons. Accounting, Purchasing, Quality and Sales employees are required to pass a multitude of hurdles. A credit history evaluation, employment history, driving record, criminal history, drug test and any specific job knowledge test deemed necessary to establish the applicant has the knowledge to perform the job will help "score" their measurable skills and atributes.

It's not like it was when I started my first job but in todays environment all businesses have a target on their back from a lawsuit perspective for real or perceived product liability, discrimination or a multitude of other areas for which they are vulernable. The government has its hands in most business either directly or through regulatory requirements and drive a lot of this behavior.

 

[64dart170]

If they keep it up they will turn the country into a prison yard. No jobs?
You think my family and I are going to starve?
WAKE UP AMERICA!
If it keeps going it will turn into what New Orleans was after Katrina.
Whatever gang has the most guns, robbs the places with the most food!:angry7:

It's better to NOT extend the Unemployment benefits, that way the unemployed that have run out of benefits just drop from the rosters and the the NUMBER of people on unemployment benefits goes down!
Hey we turned it all around! Everybody is loosing their homes and the crime rate is through the roof, but theres less people receiving unemployment so that means they went back to work........Right?!:toothy10:

 

[alsdemon]

64dart i feel the same and they just announced a new round of billon dollar bonus. how can they get money like that when people are losing everthing and it legal but you can,t pay on time u can,t get a job. makes me want to go postal, i don,t care for me but my kids are still young and i don,t know what they have to look forward to?

 

[64dart170]

64dart i feel the same and they just announced a new round of billon dollar bonus. how can they get money like that when people are losing everthing and it legal but you can,t pay on time u can,t get a job. makes me want to go postal, i don,t care for me but my kids are still young and i don,t know what they have to look forward to?

I feel ya brother!
I will bow out to not thread hog but I gotta say,

WARNING RANT ALERT!! Sorry!8)
I think it's going to make us all better in the long run.
Me? for instance.
Looking foward to hustling my money again, buying, selling, all cash now, no debt.
I can't remember when I've had so little stress other than wondering what's next. Good thing, had it done to me so royal, it just rolls off like water on a ducks back now!
Back in the 80's when I got out of the military I open my own printing company on $1100.00 I borrowed from my dad. Stayed open 5 years and sold for hardly anything to take a corporate printing job. Wasn't allowed to have my own printing presses if I worked for them! But My Tax lady bookeeper fell in love with me when I showed a break even year, 0 profit!!
The whole thing really makes you dig in, besides now I get to sell all the stuff I acumulated (and did not need) when I had a job with lots of money and no personal time with family.
I'm at the final stages of cashing in the last of my retirement IRA. I'm starting Aurora Darts & Parts Sales from home office and auto restorations etc outside the house. If that doesn't go, we sell my 100+ year old house that's been in family sense 1941. Will then work at different KOA's working out of nice camper next to the beach!
Looking foward to better days without the pencil neck geek boss fresh out of school telling me how to do it better with "Lean" manufacturing!

Ooops! Sorry RANT Alert!
Ok I'm done, I'll keep reading but I aint writin'8) again!

Sorry Inkjunkie! Your thread!!!!!

 

[BigHook]

It's not like it was when I started my first job but in todays environment all businesses have a target on their back from a lawsuit perspective for real or perceived product liability, discrimination or a multitude of other areas for which they are vulernable. The government has its hands in most business either directly or through regulatory requirements and drive a lot of this behavior.[/QUOTE]


Indeed, so many aspects of our personal, social, and commercial society are preceded by, sometimes appropriate but often times ridiculous, litigious posturing that it sucks small pieces of life out of everything we do these days.

 

[inkjunkie]

Ok I'm done, I'll keep reading but I aint writin'8) again!

Sorry Inkjunkie! Your thread!!!!!

no need to apologize. i am interested in hearing what people have to say. We have our own story to tell as far as debt goes, but that is a rather frustrating subject for us....

 

[demon seed]

and i bet u didnt get that job

You betcha I did, I was there for 2 months, it seems that the security company was going above and beyond their mandate like asking your references for references which ya also can't do. At some point in time ya gotto stand up to these flunkies and say "screw you".

 

[alsdemon]

ya demon seed as they say on plnks FIGHT THE GOOD FIGHT/ out

 

[Backtobasics]

I am going to be a bit of a devil's advocate here. I do wonder if it is credit score only, or a credit report?

It costs businesses a lot of money to have employees these days, in salary, health insurances, unemployment insurance, etc. Employers use tools to determine the best hire...interviews, drug tests, references, certifications, certificates, degrees, resume', etc

Credit score is merely one more tool by which to judge potential applicants.

Credit score can indicate personal organization, management of priorities, organization skills, money management, etc. The employer is judging if the applicant can manage the tasks of the job.

If it is full score, they can look at outstanding lines of credit, where and how that credit is used, and pay back history, and debt to available credit. (Does the applicant have normal usages, or do they have credit accounts all over the place, for every little thing / accounts maxxed out {could indicate inplusiveness])

If an employer has 2 lead applicants for a position, both qualified, both interviewed well, I would presume the employer is going to look for SOMETHING to break the tie. IF one has good or great personal credit, and the other does not, then that could influence the decision. If the person with not so good credit can explain (divorce, fraud, etc) then that would probably level the playing field, but do you think that person is likely going to get the chance to explain? Probably not.

Do I think it should be the sole decision criteria, NO.
But in the above case, ON PAPER, the good score candidate would appear to be the better hire, and besides physical interviews, job applicants get to the interview based ON PAPER, via resume'.

This comes from someone with terrible credit early in life, (college credit card, slow pay, etc). It took wife teaching me some personal organization skills to get me back on track.

 

[dgc333]

Just a few comments;
* A "Credit Score" is a relatively new thing something on the order of the last 10 years. It is an ambiguous number that the banks came up with to decide how desirable you are to lend money to. Someone that pays cash for everything will have a lower score or someone that is behind on payments will have a lower score. Someone with to many credit cards (whether you have zero balance or not) will have a lower score, someone with not enough credit cards will have a lower score and someone with an income to dept ratio that is to high or to low will have a lower score.
I got an equity line of credit on my house a couple of years back to do some house repairs. When I closed the loan the bank gave me copies of my credit score and report that they used to determine my loan. I found it interesting that I had a lower score than my wife and stated to did into what it was all about. Basically I had some old credit cards that I though were closed and had used in years that technically were still open which effected my potential income to debt ratio. Once I closed them my credit score (and my wifes) went up.
Anyway what the bank told me was if your score is above a threshold number then they look no further. If it is below the threshold they will did into your credit report to see what is up before making a decision.
* Credit Reports have been around since I became an adult (~38 years) and you would be shocked at how often someone accesses your credit history. Even my first job out of college back in the early 70's they checked my credit report, this is nothing new for large companies or companies where you have access to sensitive information.
* With all the identity theft that is happening it's in everyone's best interest to purchase some sort of credit monitoring. For $100 a year you will have access to your credit report anytime you want, you can set limits on changes in your credit balances and control who can access your credit history (and score). I have been using Equifax for this for almost 10 years now.
* For someone that is out of work you have to to contact your creditors and work out some arrangements. If you do this before you are deliquent it will not negatively impact your credit in the majority of the cases. If you don't and let the creditors start calling then you have no one to blame but your self.

 

[bpwordman]

Consider this- 2 applicants- 1 has been poor all their life; money has always been a struggle; they have done what they could with what they have, but those 'food or rent' decisions have always been there-- the other has done well; has the big house, 3 cars, all the trappings- on credit- and is now struggling because of the economy; all other things being equal, which one is better prepared to handle fiscal adversity? Is 1 a bigger risk than the other to a potential employer?

 

[64dart170]

I am going to be a bit of a devil's advocate here. I do wonder if it is credit score only, or a credit report?

It costs businesses a lot of money to have employees these days, in salary, health insurances, unemployment insurance, etc. Employers use tools to determine the best hire...interviews, drug tests, references, certifications, certificates, degrees, resume', etc

Credit score is merely one more tool by which to judge potential applicants.

Credit score can indicate personal organization, management of priorities, organization skills, money management, etc. The employer is judging if the applicant can manage the tasks of the job.

If it is full score, they can look at outstanding lines of credit, where and how that credit is used, and pay back history, and debt to available credit. (Does the applicant have normal usages, or do they have credit accounts all over the place, for every little thing / accounts maxxed out {could indicate inplusiveness])

If an employer has 2 lead applicants for a position, both qualified, both interviewed well, I would presume the employer is going to look for SOMETHING to break the tie. IF one has good or great personal credit, and the other does not, then that could influence the decision. If the person with not so good credit can explain (divorce, fraud, etc) then that would probably level the playing field, but do you think that person is likely going to get the chance to explain? Probably not.

Do I think it should be the sole decision criteria, NO.
But in the above case, ON PAPER, the good score candidate would appear to be the better hire, and besides physical interviews, job applicants get to the interview based ON PAPER, via resume'.

This comes from someone with terrible credit early in life, (college credit card, slow pay, etc). It took wife teaching me some personal organization skills to get me back on track.

Hi Backtobasics, first Please don't take this personal. I agree with alot of what you have to say. So much so it moved me to write again.
So nothing following towards you, I just thought it was time for me to write again, and I always love following devels advocate because I wouldn't advocate for him! LOL!!! So I must say:

Down with corporate college weiners who have way too much self esteem in themselves, and are working in HR looking down their noses at the poor flock!! Boot lickers!!:thebirdm:
Sorry had to pipe in again.
IT'S 2010!!!
I lost everything not from money/credit management of my own irresponsibility.
It was due to someone else irresponsibly luring me out of a well paying steady job, with promice of 25% company ownership in 5 years. Through CORPORATE MISMANAGEMENT OF FUNDS!!! I lost my job beoing the higest payed employee besides the owner.
"Sorry John, you just make too much money"!
Jezz Robert (name change here), I wish you relized that when you hired me 10 months ago. I was making 60K+ a year and came here for 45K for future ownership!!!

I am just now being able to sit down without the deep aching pain in my cavinousrectumus!!!

I'm just playing Angels advocate! DOWN WITH CORPORATE GREED!
KILL THE THEIVES!!! Better yet, make them homeless or give him the choice of going to Afganistan when he first goes into the unemployment office...

Your here for unemployment benefits.....
Yes
Are you a veteran?
Yes
Oh good you get preferencial treatment. Wait over here to be seen right away.
OK????
Hi. Sooooo.... Your a vet hugh?
Ahhh yep!
How would you feel about going to Afganistan?
Whats it pay? For how long?
Pay depends, you would be there for 10 months. The money you make is tax free.
Pay depends on what?
Wellll.......It depends on the areas you work in.
Meaning my avionics experiance working on planes vs a cook, or depends on the area having to be armed or not.
Yes it depends on weather you want to work in an area where you would need to at least carry a side arm, or in an "unarmed" safe area. Could be and is different areas even though you working on avionics and such.
OK, You know my age right?
Yes not a problem.
I'll get back with ya thanks!!!

I almost feel better now! Once again sorry, I just can't help myself. Way too much gettin kicked around by the ivy league!!!:angry7:

 

[crazybarracuda]

most employers see it as this. If you cant handle your own personal finances you wont be able to handle your responsibilities at work and your mind will be more on your money troubles than your job

 

[furz4]

Lots of reasons, some may be valid like working at a bank or some kind of money manager. But working at a parts counter at Advance give me a break. If the workers made enough to buy the parts the sell they would not have to worry about stealing. In most cases it's about getting what they think is the best employee for the least cost. I work for a large defense contractor that pays everybody well but age discrimination is a serious problem at our company sometimes. And all those great folks with good credit scores, to bad they don't have a score for how big a liar you are. It's the whole culture in this country about credit and money that is the problem, way to little saving and too much spending with little restraint. Most people would not survive job loss of any length of time without serious money problems. My .02.

 

[crazybarracuda]

Here's another point to consider:
I'm 50, and all my life played the credit score game.
I no longer do that. My wife and I don't borrow for anything. (Including credit cards.) If we don't have the money, we don't buy it. The last loan we had was a mortgage, and that has been paid off for two years.
When we had loans, we paid them perfectly (we were fortunate), and, as a result, had a great credit score.
I haven't checked our credit score lately, but I've heard that living as we do (not borrowing), gives you a lower score. What's up with that? Having a great credit score only proves that you have bought into the belief that you must borrow money, instead of saving your own. Bull.

I've never researched that credit check to-get-a-job, or insurance, etc. It seems to me to be completely unconstitutional. Not that our politicians are worried about that silly document, anymore. I don't care if it seems to make sense that I'm a better/worse employee or ins. customer, or whatever. NONE OF YOUR BUSINESS!

"When you give up your freedom for security, you deserve neither, freedom or security". -Ben Franklin, I believe. This country was founded because the people wanted to be left alone. What is happening to that desire?

sounds like your on a plan similar to the one of Dave Ramsey. Cash only No Debt. i wish i would have found out this is the best way to live and now im digging my way outta debt. The idea of a FICO score is its a number based on you having debt and keeping debt rather than what you are truely capable of. if you have no debt for several years you will have a 0 for the FICO score. nothing bad about it but if you go to get a mortgage or loan you need to have someone who can do manual underwriting for your loan. Basically they will look at your income and bills rather than your FICO Score

 

[Flatlander]

What backtobasics and crazybarracuda say.

 

[SpeedThrills]

sounds like your on a plan similar to the one of Dave Ramsey. Cash only No Debt. i wish i would have found out this is the best way to live and now im digging my way outta debt. The idea of a FICO score is its a number based on you having debt and keeping debt rather than what you are truely capable of. if you have no debt for several years you will have a 0 for the FICO score. nothing bad about it but if you go to get a mortgage or loan you need to have someone who can do manual underwriting for your loan. Basically they will look at your income and bills rather than your FICO Score

Yes, I used to listen to Ramsey when I drove an 18 wheeler 5 night a week, 2700 miles. I had already been working on it, he helped with his ideas. I got tired of doing our taxes, and wondering where all the money we made that year went!
Thanks for reminding me about the manual underwriting. FICO scores stink! Friends think we're nuts because we live like we do. (they've been trained by the system) But if we can afford payments, we can save up for what we want/need without paying the interest and being a slave. We use a monthly budget and every aspect of our financial lives is covered by it. We NEVER argue about money!
Thinking like this is why I disagree totally with having my credit score checked for a job, etc. They're missing out on the best employee/customer they could have, from a financial responsibility standpoint, if I do say so myself.
Thanks for replying to my post. I like to tell people to get out of debt! Most people ignore my comments when I make them. Keep working on your debt. One of the best feelings I've ever had was making the last payment on our house! Every penny we make is OURS!

 

[CHEATHAM]

I worked in aviation at an Navy base and was told to transfer or to apply to work on certain aircraft P3s that they would hire you pending your credit because if you owed alot of money to creditors then your at risk of being a thief, i dont know how true this is because if your getting paid 25-35 plus dollars per hour why would you need to steel? or maybe it was because of security reasons such as if someone tried to bribe you to give them information for a large amunt of money? they want to know if your in debt then your sucseptable to take a bribe