How does starting a new job effect your credit ?

[bada_bing]

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.

[Thomas_Thumb]

---

@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!

[takeshi74]

---

@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.