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Moderator Emeritus
Posts: 11,562
Registered: ‎08-29-2007

Re: Denied employment due to bad credit

If you want the exact sections and wording, see FCRA 604(b).

 


haulingthescoreup wrote:
Well, just remember that you'll only see softs on the full reports from the bureaus and/or annualcreditreport.com.

Speaking very generally, what type of job is he applying for?

If you are denied employment on the basis of a credit report, the potential employer is required to let you know which report was used in their decision. I was pretty sure that this was the case, but I wanted to be sure:

http://www.infocubic.com/Fcra.htm

For employment purposes, an "adverse action" means either: 1) a denial of employment; or 2) any other decision for employment purposes that adversely affects any current or prospective employee. The FCRA requires an employer to provide a copy of the consumer report to the applicant or employee and provide the applicant or employee with a copy of his/her rights under the FCRA (the "Summary of Rights Under the FCRA") before taking adverse action based upon information contained in the consumer report.

 

 

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Moderator Emeritus
Posts: 7,970
Registered: ‎12-19-2007

Re: Denied employment due to bad credit

Before I found this site, my credit was in the dumps deeply. Business was starting to take off, but had not reached an apex at that point. Early in 2007, I applied for a franchise, and was denied due to what was on my CR. It happens. I thought about reapplying after I got things squared away, but decided against it. They hard INQ'd me anyway. Smiley Mad
___________________________________________________________________
Do what is true in spite of the consequences--your future is only as true as you are.
Member
Posts: 10
Registered: ‎06-04-2009

Re: Denied employment due to bad credit

sidewinder :

 

                    I'm not sure about the rest of the country....but, here in Florida, apparently potential employers are

still supposed to, when they won't hire me, let me know what Credit Reporting Agency and the Address of the

CRA is.     (I Googled this).    And, apparently, companies (and employers in general) are  "getting away with

this.   They DON'T let me know about this information.  

                    In this respect.....I'm wondering how they are getting away this, and not even being quiestioned.

                    Technically,  it IS against the law.

                    Anyway, it doesn't matter what job I'm applying for........ALL porential employers are now

checking for credit.   

                    It used to just apply for credit cards.   Then in spread to employment.   At  first, just a few

employers would check  credit.   Now, "everybody's doin' it ".

                   Not to mention that, spread all over the Internet, is information about people with bad credit.

                   "They tend to be thieves......not trustworthy......and will steal from the company to handle their

debt problems"

                   But, in spite of this I HAVE to keep looking for work.   Maybe someone will give me a 

"second chance".   And I can start paying up these debts.   And the only way I CAN wipe out these debts

is by payments.    I can't afford to pay these debts in  'lump sums", like the creditors want.

 

                                                                                                                                    garystan

                    

Member
Posts: 10
Registered: ‎06-04-2009

Re: Denied employment due to bad credit

beli :

 

               I hear ya.........

               My situation was a little different.    I had several illnesses (blood clots, atrial fibrilation) that put me

behind in my bills.   In turn, this effected my credit.

               They repoed my car.  Fortunately,  I still have my  "small" motorcycle.

                But, now ALL employers check credit.   IT didn't use to be that way. At first, only credit card companies would check credit.   Then, it spread to employment.  Af first, only a few would check credit.

NOW......ALL employers  "are doin' it ". It the  Fair Credit Reporting Act

               And, according to the  information on the Internet.......people with bad credit  "are thieves.......

....not trustworthy........tend to steal from the company to deal with their debts"

                                                                                                                        gartstan     

                                                   

Moderator Emeritus
Posts: 11,562
Registered: ‎08-29-2007

Re: Denied employment due to bad credit

[ Edited ]

If I remember right, don't have the FCRA pulled up right now, they only have to disclose the required information per FCRA if your credit report played a part in their decision to not hire you.

 

Are you being told that your credit was a factor in their decision? 

 

Are you signing consents for them to pull your credit? 

 

ETA: I pulled FCRA up and it appears they are supposed to provide you with a copy of your report BEFORE they take adverse action based on your report. One exception is if you applied by mail, telephone, computer, etc...then they must do the above within 3 days of taking such action. 

 

There are other exceptions. See FCRA 604(b)(3). 

 

 

Message Edited by sidewinder on 06-20-2009 01:40 PM
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New Visitor
Posts: 2
Registered: ‎06-23-2009

Re: Denied employment due to bad credit

To which industry are you referring?

MattH wrote:

scorepower wrote:
Just curious if anyone has ever been denied a job due to bad credit?  What was your score?  I just lost my job and i'm trying to prioritize my bills.  I would hate for my scores to go down but i might not have a choice if i can't pay my bills.  As i job hunt, i would hate to be denied employment due to my inability to pay some credit card bills.  Just wondering what they look for? BK, low scored, etc?    

As others have said it depends on the nature of the job and other factors so there is no universal answer.  In most cases, however, the key point is to make sure they learn all negative information directly from you before they learn it from somebody else.

 

In general, especially in this economy, if you have a totally clean history prior to a period of unemployment and then a few lates appear duing the period of unemployment I would think most employers will understand.  Of course if a person had lates while still working that would be a different kettle of fish.

 

Also, not all employers pull credit history, none of mine ever has.  Usually they pull credit history where specific requirements exist such as needing a security clearance from the government or some kind of fiduciary responsibility.  None of my jobs has ever involved classified information or handling other people's money.

 

 


 

Member
Posts: 10
Registered: ‎06-04-2009

Re: Denied employment due to bad credit

 

     BOA2011 :

 

                         Yeah,....."everybody's doin' it"  The credit check, that is.

                         And, it doesn't matter what industry you're applying to....ALL employers check credit now.

                         From cleaning toilet bowls to  Vice President of a company.

                              It's due to the Fair Credit Reporting Act.   It's been revised in the last  7-8 years.  It used

                        to apply just to credit cards.   Now, it's been extended to the employment arena.

                              And, if you notice, on  ALL employment applications, there's a page where you have to

                        sign. Giving the hiring agency/employer  the right to check your credit.   But, in order for your

                        employment application to be  processed, this form has to be signed. Or the employment

                        application won't/can't  be processed.   You have no choice in this matter.

                               Recently, through Googling research, I found out that, at least, 99% of potential

                         employers WON'T let you know the name and address of the Credit Reporting Agency where

                         they checked your credit.

                               And, through my research.......by State and Federal Laws, the potential employers are

                         supposed to let you know of this information (that they found a "negative" credit report about

                         you).       I don't know how these companies are getting away with this.   But, they are.

                              As for myself....I don't have the extra bucks to check what my credit score is right now.

                         They say, to check your score is free.....but, when you go to these sites, they usually route

                         you to another page.....or website, and let you pick which  "package deal" you wnat, and

                         then pay for that package.  THEN, you can, after some regetration and (if the site is legite)

                         let them check with your social security number,  find out what your score is.

                              I know my credit score is low.

                              But, like I said in past posts.....my credit is damaged to to severe illnesses.   And the

                         fact that I didn't push hard enough for the creditors to accept "payments"    The creditors

                         wanted me to  "pay off" the charges.   And they were more than I coiuld possibly make at

                         the time.

                                                                                                                                         garystan

 

                                                                                                                              

  

Moderator Emerita
Posts: 28,098
Registered: ‎04-01-2007

Re: Denied employment due to bad credit

Garystan:

I understand that in your experience, all employers that you have applied to have pulled your credit. (By the way, does this show on your credit reports? All three of them, the full reports that come directly from the bureaus, that show both hard and soft inquiries?)

But you are WRONG when you say that all employers pull credit reports. This is completely incorrect. You have had numerous replies on this thread, both from applicants and from employers, who say that a credit check was not done.

I'm sorry that you're having a tough time, but you can't say that just because something happened to you, it must happen to everyone. We have some members here who insist that just because something or other once happened on their credit reports which resulted in a gain of 7 points, this is true for everyone. It's not.

Again, best wishes to you.

--hauling
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Moderator Emeritus
Posts: 2,050
Registered: ‎04-17-2007

Re: Denied employment due to bad credit


mbush12 wrote:

I just read an article about this on MSN money and what most employers dont know is that your credit score has absolutely nothing to do with how you are going to perform on the job.  As a matter fact, people with worse credit have been noted to perform better than people who have good credit.


I must be really bad at my job.

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9.4.2011: TU 805. EQ 815.
Super Contributor
Posts: 5,703
Registered: ‎10-06-2007

Re: Denied employment due to bad credit


masdeocho wrote:

mbush12 wrote:

I just read an article about this on MSN money and what most employers dont know is that your credit score has absolutely nothing to do with how you are going to perform on the job.  As a matter fact, people with worse credit have been noted to perform better than people who have good credit.


I must be really bad at my job.


When I was in 70k of CC debt was was more concerned about my job than I am now at 0k CC debt.  LOL I bet the ones with a lot of CC debt do since they need the money to pay down all the CC debt they have. 

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