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I do know that most rental places will do a background check to make sure you will pay the rent and to keep a safe rental property by weeding out those with a criminal background. Most jobs do it for the same reason, along with drug tests. In types of jobs where you have to handle sensitive information like people's credit card information and their SS# like my job does, I can understand doing background checks on people before hiring them. But I think there are some places that will take people in without background checks, they just may not be in nice areas but they are out there just harder to find.
Background checks for those applying for apartments or jobs is so much the norm now that I don't even think about it. I had to have background checks for my apartment and my job. With my previous job as a home health aide, I not only had a background check but had to get fingerprinted as well. I guess that's just how things are now.
I thought companies weren't allowed to consider medical bills when evaluating your credit.
Yeah I don't think that should even be counted in as bad credit because people can't control needing medical attention, or being sick or hurt. That should not be considered when judging their character or how they manage money.
I know someone who I believe is running up against this. He and his wife ruined their credit through bad credit card debt and a foreclosure.
They are both smart people with lots of decent work experience - both in their early 50's. They moved to a new state to get a new start - had to pay cash up front for six months worth of rent in order to move in somewhere. Everytime they think they are about to be offered jobs, they fall through.
I hate to tell them, but I think their credit is the reason.
I have no problem with criminal backbround checks, or even credit checks for jobs where a person will have responsibility for a lot of funds or cash. But with so many people trying to start fresh and get back to work to PAY bills again, this just seems like a vicious cycle, and I think it should not be allowed unless the job warrents it.
I have good credit, and am realizing it can be golden in this economy sometimes. I would not have the job I have, or the credit rate on my car, cards, and home I have otherwise. Just hope I can that keep it that way. I've seen people walk away from a lot of debt and I thought that it seemed somehow "freeing" and unfair to those of us who diligently do without frills; but than I see it almost
ALWAYS comes back to bite them in the butt.
People who are so quick to gloat "Our mortgage is paid, we pay everything off each month, we only pay cash, etc.." either are very fortunate financially, or have not run up against the hard times some other have....not yet. Godd luck in your job search.
Declaring bankruptcy due to high medical bills is not the same as having 25 accounts in collection due to spending more money then you have, not paying loans, not making car payments, etc.. Good credit does not always equal good character, but it is part of what companies look at when performing a background check. In law enforcement, the background investigation goes over a person's financial past. Why? Because a person who has had problems with money MAY be a risk for bribery. This is not something that they made up because they feel like making it difficult.
Medical bills are one of many reasons a person has bad credit. Let's not make it look like everyone is responsible, but a few people are getting screwed because of medical bills. I'd love to see where you get the information saying that MOST bad credit is due to medical bills.
I had to laugh at this post. LOL right... Sorry but this is false. Police agencies only look at your credit and financial background for criminal reasons, not for the statement you made... The only "risk" factor they look at is your job history. If you hop jobs every 3 months to 6, they most likely won't pick you because it makes you look unreliable. With the exception of students.
Medical bill argument isn't a fallacy. Ever see a bill to remove a stone out of a female? How about the cost of an emergency room drive in?
1.)$60,000 - A hospital in the Phoenix area will charge you to knock you out, shove a probe in you, break up the stone, and a 2 day stay.
Let's itemize this one...
2a.)$1000 - a drive to the hospital and to couch you in making you feel good. This includes an honorary police stomping action.
2b.)$1000 - a doctor to touch you, without gloves, and tell you nothing is wrong with you.
2c.)$10,000 - the actual hospital. This includes lifting yourself on an xray machine, lifting yourself onto beds, and watching you walk out the door while you fall multiple times.
There are also others that fall on hard times and can't make their car payment. They use to be able to make payments, as well as, maybe their single credit card bill. It happens. The idea of credit and the idea the federal reserve can create endless amounts of it needs to go away...
Please stay in NYC.
Quote:
Originally Posted by JustMovedHere
I just relocated to AZ from MN and am having a tough time finding employment and housing because of bad credit. What's with the background check and credit check for employment here? I've never had to do that...I have tons of exp. in my field, and have aced interviews, even been offered jobs "pending background check"...and due to divorce, my credit is shot...and therefore...do not get the job. Does anyone else have this problem, and if so, do you have any recommendations? Same with housing...I lucked out with a sublet, but don't have much time here, and with bad credit, doubt I'll be able to find a place...especially without a job! HELP! Any thoughts? (I do NOT have a criminal background...no arrests/felonies, etc.) It's VERY frustrating...especially when you loose a REAL GOOD JOB because of your credit. Thanks much!
Jobs are picky out here. The valley is plagued with temp agencies. If you want a direct hire, it's going to take a while. I have 10 years of experience doing what I do and I didn't receive a single call until I started showing professional certifications on my resume. I can tell you it took me a year to find a job, not a great one, but a job. Maybe your experience isn't diverse enough? Unless your a C/Java programmer.
Reading this thread actually helped explain things on why I could never find a job despite my degree, I'm too scared to even look at my credit score.
I made the mistake of co-signing a small student loan for my brother in law that he's having a hard time paying off, and having some student loans myself doesn't help things either. I didn't think you'd need a background check for Computer Animation (despite that now most of these jobs are overseas) but California's laws reflect that they do this as common practice.
This begs the question... what can you do to prove yourself worthy otherwise? Seems HR holds the cards, and your job on the whim of what he/she "assumes" who your character is by some score.
There is absolutely no basis for these checks. No studies have confirmed that people with bad credit are poor employees, bribe risks, or have bad character. It's all speculative and should be illegal for ALL jobs. Many kids are coming out of college now with bad credit and it's no wonder they can't get a job. Minimum wage jobs do not pay rent. What do most people get when they are out of school or the parents house? They usually start out with low paying jobs and zero understanding of how the credit system works. I had a friend that jacked his credit up because he paid late all the time. He thought his credit would be better since the late fee was larger than his payment, which means the creditor makes much more money off of him than someone paying on time. It's a crooked system that should have a nice course in high school dedicated to understanding it. Also, before one attends college they should be warned of how this system that favors the rich can hurt their chances of getting any good job after school. It is a horrible cycle that keeps kids coming from poor families from moving up. I'm usually not a boo hooer, but you tell me how these people that have maybe one delinquent credit card and a few late car payments are going to get a decent job. Oh wait, they're not. The argument for these checks is getting old. If your credits bad you are more likely to steal, accept bribes, or call out sick. Really? You could also argue that the person with bad credit needs the job more, due to the fact that they need to pay their bills and get on their feet. Again, there are no studies confirming any of these grandiose assumptions and it should be ILLEGAL.
This begs the question... what can you do to prove yourself worthy otherwise? Seems HR holds the cards, and your job on the whim of what he/she "assumes" who your character is by some score.
Go back and read my prior post which may help you view things from the employers perspective. Then, go to annualcreditreport.com. NOT one of the other sites. This site has been set up to allow everyone to download and review their credit reports with all THREE agencies once per year. Using this site elinates the risk of having your scores drop a few points for pulling a credit report. it's also not a scam site. I suggest you pay for one score - like $6 I think - not all three (unless you are applying for a mortgage). If the info on the reports is the same, the scores will be around the same. FICO is the most commonly used score and the only one I pull each year.
Get the three reports and review them. Dispute any inaccuracies. Educate yourself on how to repair that score if it's damaged.
Now you know what info your employer is seeing. So, before the interview is over and you KNOW they are going to check your credit, tell them (briefly and simply - no whining allowed) what they will find. Explain that you decided to help your brother by co-signing the student loan and he's struggling to make payments, so that's affected your credit. (note the subtle change in my explanation from yours in your post.). To many employers, you just became the smart and responsible candidate - you're the one who knows where he stands financially, accepts responsibility for consequences, is honest and forthright, and wanted to help his brother go to school.
That's a guy that would be appealing to any employer, perhaps more so than the guy with stellar credit. Honesty goes a long way.
I've worked in banking for 10 years and from what I've seen, the vast majority of people who have bad credit got that way because of medical collections. Yes there are some people who are just plain irresponsible but most got sick and either didn't have insurance or insurance wouldn't cover all the costs. The problem with pre-employment credit checks is they usually don't look at individual circumstances. In fact in most casses the credit check is done by an outside firm and the employer just recieves a pass/fail report back and never even sees the credit report.
I just have to interject here. I went to a job fair here in AZ and they pulled credit. My FICO was 720 and they refused me an interview - blamed it on my credit. Well, I went straight to headquarters and got them to admit it had nothing to do with my credit at all. Problem is, even after threatening them with court, I never found out what it was.
My point is credit is only one piece of the puzzle. If they don't like you, for whatever reason (your age, your looks - in my case they'd seen my resume and THEY invited me to their job fair), you're out. People don't like to think that discrimination happens, but it does. Likewise, I imagine the inverse can apply as well. If you are outstanding in your field, and are upfront about less than stellar credit BEFORE they run the check, you just might get that job or place to live.
Then, go to annualcreditreport.com. NOT one of the other sites. This site has been set up to allow everyone to download and review their credit reports with all THREE agencies once per year. Using this site elinates the risk of having your scores drop a few points for pulling a credit report. it's also not a scam site.
And another way to monitor your credit reports for no charge using this site is to request your report from just one agency at a time, every four months. That way, you can monitor any activity, free, throughout the year, instead of just annually.
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Credit checks are bogus
The argument for these checks is getting old. If your credits bad you are more likely to steal, accept bribes, or call out sick. Really? You could also argue that the person with bad credit needs the job more, due to the fact that they need to pay their bills and get on their feet. Again, there are no studies confirming any of these grandiose assumptions and it should be ILLEGAL. 
