topic Re: How does starting a new job effect your credit ? in General Credit Topics

How does starting a new job effect your credit ?

Anonymous — Fri, 11 Dec 2015 07:36:38 GMT

Not sure where to put this so into general we go!

So long story short, We were informed 2 weeks ago that our company was closing our plant next year sometime in the second half.... 12 years and pretty much the only job I have had.... is now gone. Now, I did what any normal person would do that has a family and is somewhat aggressive in dealing with life issues, I started submitting resumes.

Yes, I have indeed found a job in such short time. In fact had a few interviews, but the accepted job was what I wanted of course.
Now, here is the thing. I will be via a contract to hire. Its through and employment placement type deal. For those not sure what that is, companies outsource the HR BS to a service who then gets to thumb through all the apps and do the interviews.

Anyways, the contract is for 520 hours. Then after the employer has the ability to hire you on. Now, both the supervisor and the recruiter both assured me that unless I messed it up myself by not showing up or did a bad job, its almost a sure thing. This is the company slow time, so if they are looking for people while its slow, when it picks up in the late spring.... yeah you get it. Also, a co worker who worked there pretty much told me I am a shoe in.

Now for the real question. How does this affect my possibilities of gaining credit? Not only will I work for about 3 months for the service... but if I get hired on, it will technically be another job change.Does this limit your chances of not only getting a new line of credit, but also how does it do when it comes time for CLI?

Re: How does starting a new job effect your credit ?

Anonymous — Fri, 11 Dec 2015 07:39:06 GMT

I like to add that even starting via the service, my pay will be over a dollar more a hour, after training ( about 2 to 4 weeks ) I get bumped up another $2.50 a hour, and if hired on after contract I get a bump of another $3.
There is reasons why this place pays well, the hours stink ( working every weekend and holiday ).

Re: How does starting a new job effect your credit ?

Anonymous — Fri, 11 Dec 2015 07:40:05 GMT

They won't care as long as you continue to pay your bills on time, while doing everything you've already done to manage your credit. No need to volunteer information either.

Re: How does starting a new job effect your credit ?

Anonymous — Fri, 11 Dec 2015 07:41:05 GMT

@Anonymous wrote:
They won't care as long as you continue to pay your bills on time, while doing everything you've already done to manage your credit. No need to volunteer information either.

Re: How does starting a new job effect your credit ?

Anonymous — Fri, 11 Dec 2015 07:50:14 GMT

@Anonymous wrote:
They won't care as long as you continue to pay your bills on time, while doing everything you've already done to manage your credit. No need to volunteer information either.

Well I did not plan on calling any one up and telling them LOL! I thought that was one of the things that they might check. I know on my CR it lists employers so that is why I was wondering.

Re: How does starting a new job effect your credit ?

Anonymous — Fri, 11 Dec 2015 08:13:57 GMT

@Anonymous wrote:
@Anonymous wrote:
They won't care as long as you continue to pay your bills on time, while doing everything you've already done to manage your credit. No need to volunteer information either.
Well I did not plan on calling any one up and telling them LOL! I thought that was one of the things that they might check. I know on my CR it lists employers so that is why I was wondering.

I think that field is only there to show that you are actually employed. Be sure to update your income information though, in your credit profile.

Also, CCCs can use that data on your application to sue you in the case that you falsified your income if you become bankrupt.

Re: How does starting a new job effect your credit ?

2b2rich — Fri, 11 Dec 2015 17:35:04 GMT

@Anonymous wrote:

Now for the real question. How does this affect my possibilities of gaining credit? Not only will I work for about 3 months for the service... but if I get hired on, it will technically be another job change.Does this limit your chances of not only getting a new line of credit, but also how does it do when it comes time for CLI?

Honestly,

about the only time I've really had to prove anything regarding my income, was when I bought a house, and that one's understandable. My card applications have all taken my word for it that I have a job making x amount of money, and I have received very nice SL and CLI from both banks and store cards without them verifying any of it. (of course it would be what I put down on the app if they ever did, though)

Re: How does starting a new job effect your credit ?

Anonymous — Fri, 11 Dec 2015 17:37:42 GMT

It won't effect you. It takes something like 5 years for the employer on my credit report to change.

Re: How does starting a new job effect your credit ?

Anonymous — Fri, 11 Dec 2015 17:42:16 GMT

It won't affect your credit scores and your credit report at all. However, some lenders (more often for loan/mortgage than credit cards) ask for length of time with your current employer and at current residence. They like to see some stability, maybe 2 years at the same job or so.

Re: How does starting a new job effect your credit ?

Anonymous — Fri, 11 Dec 2015 21:21:23 GMT

@Anonymous wrote:
@Anonymous wrote:
They won't care as long as you continue to pay your bills on time, while doing everything you've already done to manage your credit. No need to volunteer information either.
+1

+10

Re: How does starting a new job effect your credit ?

bada_bing — Fri, 11 Dec 2015 21:33:09 GMT

It won't effect your Fico scores or report and because of that it won't change existing accounts

Or limits. It can be a factor in applying for new credit, just about no new credit is based 100%

off of Fico or just the information in your reports. The potential detrimental effect is fairly short

lived. I've never heard of anything longer than 2 years at present employment being an issue and

for most things it is more like 6 months.

I've been a displaced worker due to plant closures twice in my 30 years working. After getting past

the turmoil, both times were a blessing to me. I quickly landed at better employment for better money.

It sounds like you may find the same.

Re: How does starting a new job effect your credit ?

Thomas_Thumb — Sat, 12 Dec 2015 01:04:17 GMT

@Anonymous wrote:
Not sure where to put this so into general we go!

So long story short, We were informed 2 weeks ago that our company was closing our plant next year sometime in the second half.... 12 years and pretty much the only job I have had.... is now gone. Now, I did what any normal person would do that has a family and is somewhat aggressive in dealing with life issues, I started submitting resumes.

Yes, I have indeed found a job in such short time. In fact had a few interviews, but the accepted job was what I wanted of course.
Now, here is the thing. I will be via a contract to hire. Its through and employment placement type deal. For those not sure what that is, companies outsource the HR BS to a service who then gets to thumb through all the apps and do the interviews.

Anyways, the contract is for 520 hours. Then after the employer has the ability to hire you on. Now, both the supervisor and the recruiter both assured me that unless I messed it up myself by not showing up or did a bad job, its almost a sure thing. This is the company slow time, so if they are looking for people while its slow, when it picks up in the late spring.... yeah you get it. Also, a co worker who worked there pretty much told me I am a shoe in.

Now for the real question. How does this affect my possibilities of gaining credit? Not only will I work for about 3 months for the service... but if I get hired on, it will technically be another job change.Does this limit your chances of not only getting a new line of credit, but also how does it do when it comes time for CLI?

Generally, a CLI does not look at employment history, just payment history and reported imcome - income verificationis unlikely but if requested a pay stub may suffice.

For new credit it is the employment informantion on your application that counts - CRA employment history is often exceedingly inaccurate. Many creditors want to see a minimum of 6 months with your current company. However, the 6 month threshold is almost always waived/overlooked for mortgage applications involving a relocation with a different company.

Congratulations on the new job!

Re: How does starting a new job effect your credit ?

takeshi74 — Mon, 14 Dec 2015 13:27:55 GMT

@Anonymous wrote:
How does starting a new job effect your credit ?

From a FICO scoring perspective you can see for yourself. Note where employment factors in.

http://www.myfico.com/crediteducation/whatsinyourscore.aspx

That said, it's never just about score. The decision on whether or not to extend credit, set limit, set APR, grant CLI's, etc also considers income so that could be affected by your new job. We can't tell you how your new job would impact this. Creditors do not all have identical underwriting criteira and those criteria can and do vary by product as well.

To nitpick -- it wouldn't effect your credit. Your credit exists whether or not you have a new job. The word you're looking for is affect.