How low does your credit score need to be before it effects employment? (employee, credit card)
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Something I am curious about. I am in finance and related fields so I come across a lot of jobs that run credit score. What is a disqualifying score considered to be? I have no credit issues, but I am curious.
Something I am curious about. I am in finance and related fields so I come across a lot of jobs that run credit score. What is a disqualifying score considered to be? I have no credit issues, but I am curious.
When I've have my credit run for work, they've never looked at the score, just my debt. Since I have absolutely no debt all it shows is how high my credit limits are and whats the highest I've gone to the limit.
I would guess that if you have more debt (other than home, auto, and school) than you make it in a year, it may be risky.
Something I am curious about. I am in finance and related fields so I come across a lot of jobs that run credit score. What is a disqualifying score considered to be? I have no credit issues, but I am curious.
At my company it's not all about your score like we won't hire you if your below 620, its more a look at you as a person.
If it's medical bills we don't hold it against you.
For other stuff if you have a payment plan set up even if its $5 a month we won't hold that negative stuff against you.
If you don't have a payment plan set up with them it shows us you don't honor debts, pay your bills, etc.
Basically we look at you as a person rather than just a number.
I did recently not hire a girl who had a $1500 mark on her credit from victoria secret going on 3 years.
Something I am curious about. I am in finance and related fields so I come across a lot of jobs that run credit score. What is a disqualifying score considered to be? I have no credit issues, but I am curious.
I really think credit scoring for employment is a myth. Part of my duties at my job are to do background checks for new hires and all we do is a criminal check. I have asked some of the other major employers in my area and none of them do a credit check. The company that I do the background checks through offers credit checks and they told me it was rare.
I did get a credit check to get a security clearance at my last job. If your honest and tell them your having/had problems your fine. People only get in trouble if they lie. They only do that because they don't want you to be tempted to sell government secrets to solve your money problems.
It isn't the score itself that employers consider if they need to do a credit check for one reason or another. It's the 30, 60, 90 day late payments, the collections, liens (especially on taxes and homes), and perhaps high credit card balances. Though when you don't have these, your credit score is likely high but not necessarily.
If you're asked permission from an employer to do a credit check on you, just give it. If they ask questions, be honest. If you have negative marks on your reports, then there's nothing you can do but hope you get the job.
I really think credit scoring for employment is a myth. Part of my duties at my job are to do background checks for new hires and all we do is a criminal check. I have asked some of the other major employers in my area and none of them do a credit check. The company that I do the background checks through offers credit checks and they told me it was rare.
I would have to agree. The only times I have ever seen a credit check matter for job candidates are for one of two reasons:
1 - If they are hiring someone who will be managing very large amounts of the company's money, they may look at their credit score as a means of understanding how the candidate manages money in general.
2 - If an employee will get a corporate credit card on which they are expected to run up significant, monthly bills (such as someone who travels very frequently), they will also look at credit scores mainly because someone with a very bad credit score may be given a low limit on their corporate card by the issuer - which creates a problem if the limit is too low to cover expected expenses - then they can't do their job as a result.
Outside of those two cases, I've never known an HR dept. to run a credit check on an applicant.
I am not really sure how accurate a credit check is now for either of us. Our mortgage is paid off, no car payments, no credit card debt-have one don't use it. It show we paid off all our debt way before it's time. But nothing new taken out in over 7 years.
At my company it's not all about your score like we won't hire you if your below 620, its more a look at you as a person.
If it's medical bills we don't hold it against you.
For other stuff if you have a payment plan set up even if its $5 a month we won't hold that negative stuff against you.
If you don't have a payment plan set up with them it shows us you don't honor debts, pay your bills, etc.
Basically we look at you as a person rather than just a number.
I did recently not hire a girl who had a $1500 mark on her credit from victoria secret going on 3 years.
I can understand the reasoning for why companies want to see the credit history of potential employees, but I think it should be considered private information that employers don't have a right to demand from you.
With the job market the way it is, people are being discriminated from job positions in ways that should be considered unconstitutional. Did you know that there are people who are turned down soley on the reason they have been out of work for longer than 6 months? Companies even list this requirement in the employment ad.
There are hundreds of thousands of well educated hard working people out there who have been unemployed for over 2 years, lost their homes, and run up a ton of debt because of nothing other than the economic travesty created by capitalists. How is it far that a company can discriminate your opportunity for employment based on this situation? The unemployed have rung up debt because they lost their job, how can they climb out of debt if no one will hire them because they have debt? It's unfair and should be illegal.
Quote:
Originally Posted by Tober138
I would have to agree. The only times I have ever seen a credit check matter for job candidates are for one of two reasons:
1 - If they are hiring someone who will be managing very large amounts of the company's money, they may look at their credit score as a means of understanding how the candidate manages money in general.
2 - If an employee will get a corporate credit card on which they are expected to run up significant, monthly bills (such as someone who travels very frequently), they will also look at credit scores mainly because someone with a very bad credit score may be given a low limit on their corporate card by the issuer - which creates a problem if the limit is too low to cover expected expenses - then they can't do their job as a result.
Outside of those two cases, I've never known an HR dept. to run a credit check on an applicant.
I have been run a background and credit check by several companies for employment. I work in sales, and I was never given a company credit card.
I don't have bad debt, or been denied a job because of my credit check, but I've been checked.
I think these types of checks are far more important for employers to do than credit:
-- If a potential employee has a history of suing former employers
-- If a potential employee has a history of frequently suing others
-- If a potential employee has a history of going out on long-term disability at former employers
-- If a potential employee has had more than normal workers' compensation claims, especially while working at a position that is not known for employees getting injured
I have found that once some people get a taste of the above things, they go back for more. It's a good idea to see if your potential employee has a pattern in those directions. However, I bet most employers are too dumb to check out these things, which has the potential to really hurt an employer's bank account if they hire the wrong person.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
