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Credit Check with Prospective Employer

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Anonymous
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Credit Check with Prospective Employer

Dear Fico Forum Members,

 

Hope someone can provide me with some information that I have been searching for! After being unemployed for several months, I am finally about to go through a hiring process.  I have a feeling the forms that I will need to fill out for human resources are going to request to check my credit history.  My scores were all above 700 or close to it until about 3 weeks ago (I recently had an emergency & needed to utilize 100% of my AMEX card, but turned around and paid 100% of it off 2 weeks before the statement was due- hoping that I would pay this off before it reported to TU, EQ, EX...however, AMEX seems to have immediately reported my 100% utilization). Unfortunately my scores now range from a low of 647 to 696 even though all credit cards have zero balances and I haven't been late on any bills for more than one year  (no collections, no judgement, etc). Does anyone know if there is a  credt score number that precludes human resources from hiring?  Also, this is a position related indirectly to the financial sector....

 

Would appreciate any thoughts on this.

 

Thanks,

 

"More Future, Less Past"

Message Edited by GoodTims on 02-09-2009 01:20 PM
Message 1 of 7
6 REPLIES 6
Anonymous
Not applicable

Re: Credit Check with Prospective Employer

I think seeing that you don't have anything else negative on your report, and that you did pay it off, it shouldn't be a big issue with an employer.

 

I recently went through the hiring process, for a casino, and had to get a license, which included an intense background check and credit check, and  I'd been unemployed for several months and had gone trhough my savings, I was almost maxed out on my credit card limits.  There was one serious error on the credit report they pulled.  Collection accounts from the same CA that had been paid in full over five years prior, but had never been reported as paid to TU, and I hadn't caught it, but they did.  I sent a dispute letter to TU,  I showed the employer a copy of it, as well as going into the office with copies of my other two credit reports that didn't show it, and even though it was a tedious process, it was well worth it (those are now off my report).  They even told me they care about revolving credit the most,  not how much, but my payment history.  They WANT to hire you, that's why they're willing to go through the tedious background checks once they meet the right candidate.  You could also just bring up to them first that the AMEX was close to it's limit and you paid it off, that way they see you're an open book.

 

But, by the way you're describing your history, etc., I think you'll be fine.

 

 

Message 2 of 7
Anonymous
Not applicable

Re: Credit Check with Prospective Employer

Michellewaves, thanks so much for sharing your experience. It helps to alleviate my anxiety a bit! Job interviews are absolutely nerve racking for me because I need a job so desperately (...and this is only a 1/2 time employment opportunity!). 

 

It sounds like the casino you work for alerted you to credit issues so that you could explain them or amend them in some way.  I wonder if this is common practice or if most companies see something negative on an otherwise qualified applicant's credit report, decide not to go ahead with the hire....and then never tell them that it was a result of a credit report?

Message 3 of 7
MattH
Senior Contributor

Re: Credit Check with Prospective Employer

 

The general rule of thumb is, they had better learn any negatives from you before they learn them from any other source.

 

TU 791 02/11/2013, EQ 800 1/29/2011 , EX Plus FAKO 812, EX Vantage Score 955 3/19/2010 wife's EQ 9/23/2009 803
EX always was my highest when we could pull all three
Always remember: big print giveth, small print taketh away
If you dunno what tanstaafl means you must Google it
Message 4 of 7
Anonymous
Not applicable

Re: Credit Check with Prospective Employer

Thanks for the adviceAt what point in the H.R. "paperwork" process should I alert someoneDo I tell my future supervisor or do I ONLY tell the folks in H.R.? Will my future supervisor see my credit score too or is this something that is kept confidential in a H.R. file??? Or, do I tell them both (supervisor + h.r.)?  Has anyone else had this experience?  .... it's not so much about a specific credit score number, but rather more of the narrative on the report and a good explanation for it?
Message Edited by GoodTims on 02-11-2009 08:28 PM
Message Edited by GoodTims on 02-11-2009 08:30 PM
Message 5 of 7
Kay_Cee
Regular Contributor

Re: Credit Check with Prospective Employer

You should tell the people in HR about the contents of your credit report and do it as soon as they tell you they will pull your credit.  HR shoudl keep the contents of your CR confidential.   They will see  a regular CR including inquiries etc. and you shold get a letter from the CRB if there is any adverse action. 

 

Good luck.  I hope you get the job!!

Message 6 of 7
Anonymous
Not applicable

Re: Credit Check with Prospective Employer

Usually, somewhere 'round the page you sign authorizing them to pull your credit is usually a "coming-to-Jesus" section where they ask you to list your negative credit issues.

Leastways, Security Clearance forms do.

You might want to write a Letter of Explanation, too. Just write a paragraph detailing what happened and most importantly, what steps you took to fix the problem and to make sure it doesn't happen again.

It wouldn't hurt.
Message 7 of 7
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