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Hey guys, I recently received a job offer at a bank I've been interviewing with for a retail lending position. I was told by HR that I would need to successfully pass their bonding process which will examine my criminal record and credit history. I have a clean criminal record. However, one of my credit cards was closed by my bank less than two months ago (I had $400 outstanding on a card with a $1000 limit). The missed payments were due to familial issues out of my control, especially financially as I've been unemployed. I have fully paid off the outstanding balance on my closed credit card. Other than that, I have a strong history of making regular payments to my monthly internet bill.
I am a newly graduated student that will be around ~$40,000 in debt and will be required to begin making payments on my student loans within 6 months. I am in great need of this job and it is the ideal place for me to begin my career. I've struggled to find employment related to my education (BBA) for a year and a half. This was one of 3 opportunities I've received over that span of time, and the only company that had decided to extend me an offer. I am afraid that I will have my offer rescinded if insurance companies were to deem me "not bondable" due to this closed credit card.
I was wondering if anyone has any knowledge about this. I would love to receive feedback on whether or not I am considered bondable in this case. The amount was only $400 and I haven't filed for bankruptcy in the past. The closed credit card was the only experience I've had that negatively impacted my credit history. Lastly, would it be appropriate if I were to explain the reason for the closed credit card to HR before they proceed with checking my credit history? I hope I would be able to receive some clarity with this. I'm in Ontario, Canada if that helps. Thanks!
The concern with bonding is not so much your personal finances, but rather if you have behavior that makes them more suspicious that you'd be stealing the cash (that's what bonding in this context is - whenever you handle cash it's insurance for the employer if the employee should steal it, and if said employee is deemed to be a high risk for theft then the insurance company probably won't bond them since at that point it will be the insurer that will try to recoup the money from the stealing employee).
The concern with bonding is not so much your personal finances, but rather if you have behavior that makes them more suspicious that you'd be stealing the cash (that's what bonding in this context is - whenever you handle cash it's insurance for the employer if the employee should steal it, and if said employee is deemed to be a high risk for theft then the insurance company probably won't bond them since at that point it will be the insurer that will try to recoup the money from the stealing employee).
Based on my situation, do you think I would still be considered not bondable or considered high risk to the insurance company?
in all honestly it could depend on the specific institution. I've worked for a number in financial services and a more recent employer would not higher people with any dings on their credit that were relatively recent as they felt it wasn't worth the risk to their reputation - but i will stress that these individuals were not in any type of lending positions; these were for more analytics types. So each company can set their own criteria and i have seen people get offers rescinded after backgrounds for things less than a BK.
I wonder if OP was able to get the gig. I had this same concern but since I wasn't in a position where bonding is necessary or FINRA regulated my credit wasn't really important.
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