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Well I have been unemployed for over a year now and I'm sure my credit report sucks big time. Prior to that I was struggling with medical bills due to my crappy insurance not covering much of anything (BCBS).
So does that mean I can't get a job now. There is no more blood left in my turnip.
Well I have been unemployed for over a year now and I'm sure my credit report sucks big time. Prior to that I was struggling with medical bills due to my crappy insurance not covering much of anything (BCBS).
So does that mean I can't get a job now. There is no more blood left in my turnip.
No, it means you have a more difficult time getting a cash handling position or any job where you need to be bonded.
According to this link, frequent inquiries and checks on someone's credit score can lower the overall score. If that's the c ase, could someone who is applying for a lot of jobs be hurt by this?
FWIW, anecdotes aside, I am against the practice of using credit scores unless perhaps for a job handling finances and such. Unless there's some really solid evidence that there's a direct correlation between credit scores and competence or honesty - is there? A similar issue has been debated over the practice of using credit scores as one criterion in setting someone's auto insurance premiums and I don't think there's a correlation there either.
Edit to add - duh, sorry, I should have read the very link I posted!
"But the only inquiries that count toward your FICO score are the ones that result from your applications for new credit."
Sorry.
According to this link, frequent inquiries and checks on someone's credit score can lower the overall score. If that's the c ase, could someone who is applying for a lot of jobs be hurt by this?
No, there is a difference between a pre-employment pull and a pull in order to extend credit. A pre-employment or pre-screen pull has no effect at all.
Quote:
FWIW, anecdotes aside, I am against the practice of using credit scores unless perhaps for a job handling finances and such. Unless there's some really solid evidence that there's a direct correlation between credit scores and competence or honesty - is there? A similar issue has been debated over the practice of using credit scores as one criterion in setting someone's auto insurance premiums and I don't think there's a correlation there either.
The reason behind using credit scores for insurance purposes is that insurers feel that someone who handles ALL of their personal affairs in a responsible manner will also be a more responsible driver.
In the case of home owners, someone with cash flow problems is going to be far more likely to stage a burglary or set fire to tehir own hosue to colelct the insurance. There have been a number of arsons in this area this year that were found to be insurance fraud because the people couldn'ta fford the mrotgage and couldn't sell the house.
"The reason behind using credit scores for insurance purposes is that insurers feel that someone who handles ALL of their personal affairs in a responsible manner will also be a more responsible driver. "
Personally - I think this is crap! My credit is not that great and I am a damn good driver. I have not had an accident in over 20 years (and that one was not my fault - guy ran a stop sign and hit me)and one ticket in the last 10 years (prior to that, it had been over 10 years since my only other ticket from when I was a teenager). So, I'm sorry - there goes the theory that bad credit makes everayone a bad driver.
I can understand checking credit if the person is going to be in a position to handle money or other sensitive information.
But for other positions, I am against using credit to judge a person's character. Just because a person has bad credit - it does not automatically mean that they are a bad person. To discount someone from a job without even talking to them because of a credit report is just plain dumb.
This is crazy.
The majority of families who are out of work for 8 months are going to see their credit scores suffer. Going from taking home $4,800 a month to $1,340 means something has to give and people still have to eat.
I think the concept is also bogus.
I've seen three people involved in serious company/church theft over the years and they were all solid middle class. Two worked for contractors and set up a bogus invoice scheme. Took one guy for $250k before he noticed... duh? She didn't do it to survive she jut wanted to live better.
The church lady was at it for 20 years. Responsible for counting the money she took for herself every $20 bill ever put in the plate. An investigation (this one was prosecuted) was conducted and nobody could figure out why she did it they weren't hurting at all.
Exactly.
At the same time, I'm all for people not living beyond their means and saving up for a rainy day. Of course with this unemployment rate, people probably would have needed to save up quite a bit of money.
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Originally Posted by annerk
I saw it happen. Two years ago, guy got divorced. He had worked for the company for five years, great guy. All of a sudden he couldn't pay his bills, and four months later an internal investigation found that he had beens tealing since about the time he and his wife seperated. He was fired and prosecuted for almost $8K in theft.
Quote:
Originally Posted by malone7384
But for other positions, I am against using credit to judge a person's character. Just because a person has bad credit - it does not automatically mean that they are a bad person. To discount someone from a job without even talking to them because of a credit report is just plain dumb.
No, there is a difference between a pre-employment pull and a pull in order to extend credit. A pre-employment or pre-screen pull has no effect at all.
Yes, I re-read the link I posted and you are correct.
Quote:
Originally Posted by annerk
The reason behind using credit scores for insurance purposes is that insurers feel that someone who handles ALL of their personal affairs in a responsible manner will also be a more responsible driver.
Sure, but who cares what insurers feel? I'm curious about actual data, not feelings and anecdotes. And to keep it OT, as related to employment, not driving and homeowners policies and such.
Not arguing so much as genuinely curious if there is actual, reliable data that not only correlates FICO sores to job performance, but shows causation.
Yes, I re-read the link I posted and you are correct.
Sure, but who cares what insurers feel? I'm curious about actual data, not feelings and anecdotes. And to keep it OT, as related to employment, not driving and homeowners policies and such.
Not arguing so much as genuinely curious if there is actual, reliable data that not only correlates FICO sores to job performance, but shows causation.
It's not FICO scores that are pulled with pre-employment credit checks.
LOSE JOB = BAD CREDIT
BAD CREDIT = NO JOB
NO JOB = PERPETUALLY BAD CREDIT
which equals unemployable.
solution to this catch 22 : don't overextend yourself so that you are in the situation where you will be defaulting on your debts
Your credit won't suffer if you don't use the card, but it will suffer if you don't pay it.
Solution, don't charge anything you can't pay cash for.
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I'm curious about actual data, not feelings and anecdotes. And to keep it OT, as related to employment, not driving and homeowners policies and such.
