Credit Check When Applying For Job

[JohnMitchell 16]

Credit ratings affect more than just the rate you pay when you borrow money. Insurance companies are now using credit scores to adjust their rates. Seems bad credit scores seem to correlate with bad insurance risks. So a bad credit score can make your car insurance more expensive, or give you trouble passing a security check. Credit is a tool to be used, and there is nothing wrong with using it correctly. A credit rating should be managed, just like any other part of your budget or finances. Like it or not, credit ratings are very much a part of our modern life.

[JohnDeere 0]

I know John! I'm pretty sure me and you have had this conversation a time or two...... I'm curently with Allstate for all of my Comercial and personal insurance(they use your credit score to figure premiums). My credit rating is only down to about a 750 even thought i havent finaced anything for a couple of years. My premium has not gone up yet do to score. When it does I will switch to a company that doesnt base there premiums on credit score. There ignorance is there loss

Nothing opens like a Deere!

You ignorant fool! Checks are for workers!

[JohnMitchell 16]

750 is a good rating. I had mine drop below that when I was running some real estate on free money from a credit card. Suddenly it showed I was "maxed out" on a $50K credit card. That will put a hit on your rating.

Anything over 720-730 is considered very good. I do know that when you get above 800 you get extra special good treatment, though. Like I say, we use credit a lot, we just stay out of debt.

[Krip 2]

Creedit check

The bank checked out credit rating when we opened up a CD......and then asked our permission (in writeing) after the fact.

I've heard that every time a person goes thru a credit check, vis job app, insurance co, whatever it affects a persons FICO score in a negative way.

http://www.debtkid.com/credit-report-inquiries-hard-soft-pulls

Not to worry it's only .05 FICO pts per inquiry.

Don't look up

One Jump Wonder

[Smirniof 0]

Just curious... when you allow a company for a credit check ... is there an expiry date as to how far down the line they can still be allowed to do the credit check? Also ...how many credit check are they allowed to do?

[SivaGanesha 2]

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The typical person with bad credit is there for a reason.

There is always a reason, but the reason need not be that they are irresponsible.

For example, in the hi tech industry (and perhaps other industries as well) it is very common for angel investors and VCs to refuse to even consider investing in an entrepreneur until the entrepreneur has first put there own credit at risk by maxing out their credit cards, mortgaging their home, etc. This is especially true if the entrepreneur has no previous track record of success. If the business then fails (with or without angel/VC money), the entrepreneur will probably be left with bad credit personally for quite awhile.

The economy needs people willing to take entrepreneurial risks. Someone with poor credit because of a failed business may well be a good person with honorable intentions whose business skills just need refining.

If such a person wants to go back to working for others for a few years to pay off the bills they incurred and save up enough to try again at entrepreneurship, their poor credit shouldn't be held against them.

"It's hard to have fun at 4-way unless your whole team gets down to the ground safely to do it again!"--Northern California Skydiving League re USPA Safety Day, March 8, 2014

[DougH 270]

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You are correct but i dont have to worry about payin for it next mounth in case im not making as much money. I like it the way it is. Once I pay for something I dont have to worry about it.

I guess I wasn't clear enough.

Pay for it with credit, then go right online and pay it down.

You don't have to wait for the statement to cut.

Here is something people don't often take into account. You should pay in full every month if you have the means too. Carrying a balance is just throwing money out the window. But, even if you pay in full every month it is the balance on the statement that gets reported to the CRA's. I pay all of my cards online, multiple times a month, and try to only let one report a balance. The rest allways report as zero balance.

By paying multiple times a month I keep the spending in check. When there isn't enough to cover future purchases the purchases stop.

"The restraining order says you're only allowed to touch me in freefall"
=P

[DougH 270]

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their poor credit shouldn't be held against them.

Yes it should, they are a credit risk!!

"The restraining order says you're only allowed to touch me in freefall"
=P

[SivaGanesha 2]

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their poor credit shouldn't be held against them.

Yes it should, they are a credit risk!!

But they aren't applying for credit! They are applying for a job.

"It's hard to have fun at 4-way unless your whole team gets down to the ground safely to do it again!"--Northern California Skydiving League re USPA Safety Day, March 8, 2014

[SkyDekker 1,465]

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But they aren't applying for credit! They are applying for a job.

In my opinioin it depends on the job.

I manage a budget in the millions. if I cannot manage my household budget, it can be assumed I also cannot handle a budget that is a couple of orders in magnitude bigger.

[Nataly 38]

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I guess I wasn't clear enough.

Pay for it with credit, then go right online and pay it down.

You don't have to wait for the statement to cut.

Here is something people don't often take into account. You should pay in full every month if you have the means too. Carrying a balance is just throwing money out the window. But, even if you pay in full every month it is the balance on the statement that gets reported to the CRA's. I pay all of my cards online, multiple times a month, and try to only let one report a balance. The rest allways report as zero balance.

You'll never build great credit this way.. Nobody cares if you borrow almost no money at all and you're able to pay it off.. Not saying it will give you a bad score, but not a very good one either.

Then again, I may be misunderstanding what you're saying.. Just seems like you're advising people to pay off *any* borrowings as soon as you get them.. This is not a good way to manage your credit score - unless you are shit at managing your money, in which case you're better off just using a debit card and doing away with the credit card altogether.

I'm not sure I understand what you mean by "keeping a balance" either.. Keeping a balance means you don't pay your card in full by the due date. For instance, even if you pay the minimum fee, if you haven't cleared *last month's* credit card bill, you have a balance.

Now, although *technically* you may always have a balance on your account, it only matters if you don't pay off the balance on the spend incurred in the last closed financial period (ie: you need to pay off your bill in full by the due date). The fact that you may still have borrowings on your credit card in excess of your last bill is irrelevant, as they relate to a new financial period, which isn't completed yet.

The way to think about it is that a credit card should help you to manage your cash-flow. It allows you to spend now what you will have to pay off in one month's time. The key is that in one month, you must have the funds to pay off your "advance".

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