Employer Credit Check

[Anonymous]

Does anyone know what an employer looks for?  Has anyone been rejected because of poor credit?  Just wondering if I should apply for this job with the kind of credit I have!

[AKO17]

Hi fedfan - I've had many employer "credit checks" over the last 10 years and have struggled with credit in the low 500s until this year. From what I've gathered through my own research, this isnt an actual credit check, and employers are not supplied with your actual scores. Much of the information you or a lender can see is omitted from an employer's view. I've never been rejected from a job based upon one of these checks, and I believe that if you are, the company must provide a written statement explaining the reason. I would encourage you to apply and not worry about that part of the process at all. 

[Anonymous]

I'm an HR rep and can tell you first hand not to let that stop you for two reasons:

1) Not all employers check credit during their background check process. I'm in a very large financial services firm in NYC and credit wasn't even part of our BG check process until very recently.

2) Credit review may only be applicable in roles where you would have access to sensitive information. And even in that case, you would be informed and given a chance to respond before any adverse action could be taken.

[Anonymous]

Thank you guys so much.  This certainly gives me some reassurance.  I have no outstanding unpaid collections, no late payments for more than 2 years and have been working on rebuilding my credit for a while now.  My credit score per CK is 647 (TU) but as you mentioned they do not necessarily look at the score.  I can only hope they see that all collection accounts have been paid off and are at zero balance.  Your respones have given me confidence and I actually applied for the job just a few minutes ago.  I am going to cross my fingers! 

[Anonymous]

If you're in the financial industry they could turn you down. I had accepted a job offer with Fidelity Investments (in a non-investments role) and they pulled my actual reports and saw everything. They saw charge offs, balances, everything. 

They questioned me about my negatives that were still owing and they rescinded my offer. I had also inadvertantly misstated my prior year bonus and the two together were too much to keep the deal alive.

This actually embarassed the hell out of me and motivated me to clean up my credit. I have gotten a couple of promotions since then at my current employer and now make more than I would have then, but it still haunts me a bit.

I think this is the exception to the rule. Fidelity takes a hard stance on this issue. 

[AKO17]

Good luck fedfan, and keep us posted!

[Anonymous]

I also applied to a financial services industry but will not deal with cash directly or anything like that.  I can see why employers would turn down offers based off of outstanding balances, etc which is why I paid everything off.  My concern is that I recently paid off two balances, the rest were paid off in late 2012, early 2013.  Did they mentioned that because the balances weren't paid they rescinded? 

I'm really happy you turned the situation around and got promotions!  

[AKO17]

Swampthing - definitely an exception to the rule. I've never heard of this happening and have many friends in the financial industry (though none at Fidelity) who have rebuilt their credit from rock bottom. 

[Anonymous]

Agreed, I would think swampthing is an exception.

I would also say the bonus misstatement may have played a very large part. That would be considered a falsification of the application, which is huge and would automatically be grounds for rescinding an offer in most places.

[Anonymous]

I can understand the logic, however frustrating it was at the time.

Someone who owes a lot may be desperate and consider things they wouldn't otherwise. I was in a role where I would have had no access to anyone's account, but I think it was a rule at the corporate level. Also, my impression was that the hiring manager could have decided to go through with it, but he would have been putting his neck on the line. In other words, if I would have done anything out of line, it would have impacted him.

Again, for me it turned out okay as it spurred me on to better my situation. I think if everything would have been paid or settled in full (and hadn't messed up my comp) it would have been fine. I had other items that were paid or settled in full and they didn't question them. I think all together it just painted a bad picture. 

If it's paid I wouldn't worry too much. Life happens. I think some employers want to know you've handled it, though. Fidelity is on the more extreme end of it. Chances are I could have gotten in if it had all been paid at the time. Also, chances are your employer may not be that intense.

Good luck! I wish you the best!