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Nope.... but they could control the savings they had. I think I've said this on the forum until I'm turning blue. You have to find the root cause. Getting sick wasn't the root cause of bad credit. Not having an emergency fund or backup plan was.
Well we've seen several workers who had to afford this AFTER getting fired or at the time medical coverage didn't cover it so you had to go to out of network doctors and THAT is where you rack up bills. When I was two so 1989, I came down with childhood asthma. My parents HMO at the time didn't treat asthma until age 5 so they couldn't treat me and they had to take me to a out-of-network doctor and I had several bouts in the hospital. My parents were nearly bankrupt until they could change their insurance. Guess what, their emergency fund went to paying for my treatment out of network because the HMO didn't treat it.
Why does credit score matter in regards to employment? So bad credit means you cant get job to pay your bills to increase your credit score which makes your credit worse....see the cycle?
People with bad credit are often unreliable. If you don't pay your bills, you may not be someone who an employer chooses to depend on.
In this day and age, credit ratings are being used for everything. It behooves everyone to treat credit very seriously. Do not make decisions in other areas of your life that will lead to poor credit scores. Things like buying things you cannot afford and/or don't really need, using credit cards too much, having kids you cannot afford, etc.
If you think about it, behaving in a way that keeps your credit rating high actually makes you a better person in all areas. More disciplined, stronger, more shielded from short-term financial reversals, more responsible, etc. I would treat this new reality as a benefit.
Your credit score is a measure of your worth as a person to others that don't know you.
Of course it's not totally reliable, nothing is. But as I think about the people in my past, I see that those with problems keeping the bills paid often are definitely flawed in their decision making. As I look to my own past, I see that when I was unable to pay bills, it was usually because I was an idiot. Correcting my credit problems was a lot of fun and certainly made me a better person in a lot of ways.
Last edited by Marc Paolella; 10-14-2014 at 03:25 PM..
It's debt. Doesn't matter if it was good or bad, it is still debt that can turn volatile very quickly. There's no such thing as good debt. There's debt in good standing, and delinquent debt. But at the end of the day, it is still debt hanging over your head.
If students were taught that underwater basket weaving would land them a job, it was their decision not to investigate that for themselves and figure out if that were true or not. They should have researched the fields that they showed an interest in, researched average salaries, and trends to determine if that job market was stable. (For instance, my Associate's is in IT, but after researching I found that our area is saturated with IT personnel so I changed my major to Business Administration for my Bachelor's). I saw the saturation and chose to avoid it.
They may have planned for taking any job, but they did not plan to have to go without a job. (See how the root cause thing works?)
Planning starts very early in life. It starts with parents teaching their kids financial management. Then once they get older, it's bought experience. If you get into a hole, dig yourself out. Problem solving skills are necessary. You can't just throw your hands up and say you're done.
You didn't answer my question. I asked this and I'll bold the key words:
Quote:
Originally Posted by mkpunk
OK and let's for argument sake take the case of a college graduate who graduated in August 2008 through May 2010 so that's six graduation dates. At this point student loans REGARDLESS of the major was considered "good debt" by most experts (though now it's not the case and people point to tech, engineering and nursing.) These graduates were taught that say Underwater Basket weaving could get them a job and invested three/four years in before the fall happened and most were pretty set in their course and would actually have to take longer to finish their degree to get a major IF the programs weren't capped. This would also increase their loan or max it out to a point it would come from their parents or even their own dime. They planned for getting any job but then come out and have no opportunities because just about everyone had a hiring freeze and those that didn't raised their preferred requirements to five years of specific experience with a degree in that specific field (or if not a fairly close field.) My question to you, how could they have planned for that without going back to high school and suggesting a better major and not increase their student loan debt?:think:
Your answer was basically that. Go back and look at trends. Those are SUNK decisions. It's the whole logic of you make your bed and lie in it. The fact was at THAT POINT it was OK to take any major including "Underwater Basket-weaving" (FYI, it's not real and technically a strawman argument for bad majors) and nobody batted an eye, high school teachers even said get ANY degree. The issue is for many they wouldn't even know how to figure it out and by the time they do, the tab for the four/five years is being called in WITH interest. I applaud you being able to figure it out but how are others going to be able to do that? Are they going to have to look at innate ability and if they can't goto a southsayer, call Diane Warren's psychic friends hotline or call Miss Cleo (now) for their free tarot reading? The issue is unless you have an in who is blunt, it is hard to really do that.
People with bad credit are often unreliable. If you don't pay your bills, you may not be someone who an employer chooses to depend on.
In this day and age, credit ratings are being used for everything. It behooves everyone to treat credit very seriously and do not make decisions in other areas of your life that will lead to poor credit scores. Things like buying things you cannot afford, using credit cards too much, having kids you cannot afford, etc.
If you think about it, behaving in a way that keeps your credit rating high actually makes you a better person in all areas. More disciplined, stronger, more shielded from short-term financial reversals, more responsible, etc. I would treat this new reality as a benefit.
Your credit score is a measure of your worth as a person to others that don't know you.
I actually posted a study in a post on the previous page debunking that people with bad credit because they pay late or miss payments actually are not as good as an employee as those who have good credit because you pay on time. I've quoted it so you can read it and learn.
Quote:
Originally Posted by mkpunk
Actually you can and the results may surprise you. Click this for an APA for a study by Laura Koppes Bryan of the University of West Florida and Jerry K. Palmer of Eastern Kentucky University. The used the hypothesis that many of us follow, that late payment (bad credit) is an accurate prediction of poor workers. The results of their study proved the hypothesis FALSE and that they were actually better workers and more likely to have a positive and even better first performance evaluation than those who pay on time.
I actually posted a study in a post on the previous page debunking that people with bad credit because they pay late or miss payments actually are not as good as an employee as those who have good credit because you pay on time. I've quoted it so you can read it and learn.
Study, schmudy. You can find a deterministic study to refute or prove anything in today's "everything is gray", "nothing can be known for certain", people are "unlucky because they didn't choose the right parents" world we live in.
It's common sense. A bill is nothing more than a personal obligation and contract. You are telling someone that you agree to do something at a specific time and for a specific amount. When you don't live up to it, you are unreliable. A study is not necessary to observe reality.
So, having observed that someone who doesn't live up to their obligations with sufficient regularity that they have a crap FICO score, we can infer that they are not the type of employee we are going to want to hire. It's not an accident that employers want to see this number. It is accurate and it is obvious. People who don't pay their bills have a problem, and it's not a problem that other people want to share.
The best policy is to look at the real world, notice that personal promises matter, and personal contracts matter, and should be undertaken rationally and seriously, and should not be violated because of simple bad judgement and bad financial decision making.
Study, schmudy. You can find a deterministic study to refute or prove anything in today's "everything is gray", "nothing can be known for certain", people are "unlucky because they didn't choose the right parents" world we live in.
It's common sense. A bill is nothing more than a personal obligation and contract. You are telling someone that you agree to do something at a specific time and for a specific amount. When you don't live up to it, you are unreliable. A study is not necessary to observe reality.
So, having observed that someone who doesn't live up to their obligations with sufficient regularity that they have a crap FICO score, we can infer that they are not the type of employee we are going to want to hire. It's not an accident that employers want to see this number. It is accurate and it is obvious. People who don't pay their bills have a problem, and it's not a problem that other people want to share.
The best policy is to look at the real world, notice that personal promises matter, and personal contracts matter, and should be undertaken rationally and seriously, and should not be violated because of simple bad judgement and bad financial decision making.
Before that study was conducted NO study was done at the very least by the APA about if employees with bad credit if they are worse than those who have good credit.
I ask why do you rely on biases and the heuristic of "common sense" when it is flawed. My ex-girlfriend had a late medical bill after a girl hit her with the car. Her payments were late because she couldn't get a job due to having a job with the university that gave her a stippend tuition and scholarship for books each semester. The bills were late because she didn't have the money from her student loans, nor did her parents. She was supposed to get the money from the girl but never did. There always exceptions to the rule if you wish to dig in but people who look for and use silly heuristics that aren't proven are out potential great employees because they rule them out for an issue that is truly unproven and based on "common sense" that is not based on hard facts.
You can not get a job in law enforcement with bad credit and you better bet they check. You can not get a job in financial planning with bad credit but then again that should be a given. Do you really want to get your advice from someone that can not keep their own house in order. You can not sell insurance as an agent anyway with bad credit. Most of these companies also are in the financial planning sector.
I would guess other industries have similar issues with bad credit.
Before that study was conducted NO study was done at the very least by the APA about if employees with bad credit if they are worse than those who have good credit.
I ask why do you rely on biases and the heuristic of "common sense" when it is flawed. My ex-girlfriend had a late medical bill after a girl hit her with the car. Her payments were late because she couldn't get a job due to having a job with the university that gave her a stippend tuition and scholarship for books each semester. The bills were late because she didn't have the money from her student loans, nor did her parents. She was supposed to get the money from the girl but never did. There always exceptions to the rule if you wish to dig in but people who look for and use silly heuristics that aren't proven are out potential great employees because they rule them out for an issue that is truly unproven and based on "common sense" that is not based on hard facts.
She took out loans, did not have adequate medical insurance, and agreed to put herself in a position where she couldn't work? I think I found the problem.
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