Bad credit making it hard to get a job

[Anonymous]

I was wondering if anyone else's bad credit is hampering their ability to get a job? I've been told that my bad credit is affecting my ability to get a job. If I can't get a good job, how can I get the money to fix my credit problems??

Any suggestions for the situation would be appreciated. I'm very frustrated with this issue. My credit went sour when I was let go from a job and couldn't get a good job for a year and a half. Unemployment money wasn't enough to pay my bills. Before unemployment I had excellent credit.

[Anonymous]

What type of position are you applying for? Who told you your credit was hurting your chances at a job... I think each employer is different on whether or not they choose to check your credit... it's usually executive level positions and finance positions that check credit history.

[iDShaDoW]

I have no idea if there's a site that lists it, but I know there are several states that have already taken steps to make it illegal for companies to deny you employment based on your credit history if it has no actual bearing on the type of work you're doing (ie. working at a bank or investment firm).

[Anonymous]

I've been told by over a dozen friends who either hire people or are business owners plus employment counselors that many of the employers use credit checks to see if you are a trustworthy person to hire. Their thoughts are: If you can't manage your own money and credit, why should we hire you to work with our customers and their money or our money?

It was also noted on an article a few weeks ago on yahoo news or via a link from it, that 60% of employers are using your credit history and worthiness in the determination of whether or not you are worthy of an interview and hireable. I have friends who've gone through this same issue as myself and have been blocked from getting jobs.

My applications for jobs have been in retail and direct sales, manufacturing/production and customer service. They have been Las Vegas and in the greater Salt Lake City area.

If there are laws, I'd like to be aware of those that protect us. Even if there are laws though, it would be as tough to use it as a defense as age discrimination. One needs solid proof, and no employer will honestly tell you why they wouldn't hire you. They're afraid of legal retribution. Society has gotten pretty litigious!

I appreciate your input so far and look forward to any other comments!

[haulingthescoreup]

You can pull your full credit reports for free once a year from all three credit bureaus. These full reports (not the ones that you get from myFICO, TrueCredit, CreditKarma, or other monitoring services) list the "soft" inquiries made on your credit reports, which do not result from your applying for credit.

You can see if any of the companies you applied to pulled your credit. I think they're supposed to tell you if they denied you on the basis of their credit report.

Many will have you sign a form when you apply, acknowledging that they can pull your credit. Whether they actually do is another question. (They have to pay to do so.)

Oh, and when you pull your reports, do NOT buy the "credit scores" that come with them, except for Equifax (EQ.) EQ will sell you your EQ FICO score, but the other two will sell you what we call FAKO's. And they will try very hard to keep you from realizing this.

If you haven't already, please read Understanding Your FICO ® Score and Credit Scoring 101 (at least the first post.)

These will give you the background knowledge you need to understand what you read here on the forums.

[dopey7717]

I went through a lengthy interview process with a major car insurance company. This was for a claims investigation position where I would travel to disaster areas to access the damage once a claim was filed. When I got to the final interview they told me all that was left was a credit & background check. I asked what the requirements were for the credit check and she told me I had to have good credit and that they have turned down candidates that didn't have a good credit history. I ended the process right there. I told her there was no point in going forward and I didn't sign the paperwork for the credit check.

I had just pulled my fico score about 2 months before this interview and it was 411. I didn't even know credit scores could go that low. I could have used that good paying job to help me get out of this hole of medical & credit card debt. It still makes me sad to think about it. Looking at my scores below, they are still bad...but believe me....they were worse last year! I never thought I'd be happy to get BACK into the 500's.

08/29/09
EQ: 518
EX: 671
TU: 591

Message Edited by dopey7717 on 08-29-2009 07:44 AM

[Anonymous]

I was not denied employment but, I almost lost my job due to my poor credit.

And I do not work in any type of financial institution or work with money of any kind.  I work for the federal government.

Over 40% of employers run credit checks on potential and current employees.

What I find aggravating is that if you have been in jail, had DUIs, etc, those types of things can be waived.  But you lose a job, get behind in your payments, and it can cost you a job due to credit.

Message Edited by guiness56 on 08-29-2009 08:48 AM

[Anonymous]

An employer or potential employer has to get your permission before they do a credit check.  I've seen situations where the consent form is not on its own page, and it's not exactly clear what it is, but it's usually on its own page and is very clear that it's for a credit pull.

So it would be unusual (and I would say illegal, but I can't find the statute) for them to pull your credit report without you knowing about it.

So it may be useful to review your reports to see if there are any inquiries from employers that you didn't authorize.  At the very least, you may be able to get the inquiry removed.

[guydiver]

Inquiries from employers are "soft" inquiries, and are not viewable by others, and are not computed into your Fico score.  They are not "hard" pulls resulting from you requesting credit.  On the other hand, it is wise to know who has been looking at your credit reports.

[Anonymous]

More often than not, when applying for a job online the questionaire asks you to agree to a credit check as part of a background check. If you do not check the box to agree to it, the questionaire stops and kicks you off of the application thereby ending your opportunity to apply for the job.