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Yep, just one more example of the high cost of being broke.

I can't understand why it's easier to find a job if you already have a job.

I didn't see it coming when I lost my job, so I had no idea that I should be looking. I've been unemployed for over six months now. One of the questions I always hear in interviews is "What have been you been doing for the last six months." I would like to answer with "Well, duh, I have been looking for a job! Whaddaya think!", or "I'm sorry, sir, but that's really none of your business." Unfortunately, you just can't do that in an interview. So, I have to come up with some creative white lie or something.

Hey Marsha,
I don't blame you for feeling offended. I don't believe it's any of anyones business what your credit score is. That is such a private matter and usually has nothing to do with rather or not you would be a good employee. The argument I've heard is "if someone isn't responsible with their money than they may not be responsible with their job".
I just don't buy that!

Starrybright

There is another reason why employers run a credit check.

The amount of debt you have as well as your monthly bills help them determine whether you will be staying with them for the long term. High debts may have them think you will immediately be looking for a better paying job.

On the other hand, low monthly notes, or the rare person who is debt free, paying every bill with checks, and no credit card debt, means the person can leave at anytime as they don't have the debt as a reason to keep the job.

So, they aren't necessarily looking for late payments or a low FICO score. More as to whether you will be likely to stay with them as you need the paycheck, and that what they pay you will be adequate so that you aren't looking for a better position right away.

Dennis Bevers

A EONS member replied: "the rare person who is debt free, paying every bill with checks, and no credit card debt, means the person can leave at anytime as they don't have the debt as a reason to keep the job."

I am that 'rare person'--I have no credit cards (I do use a debit card) nor do I have any debt beyond normal living expenses, not because I have tons of money to live on. I do not, I live day-to-day when I do have a job. The reason: I do not believe in credit cards, etc. But my credit report looks as if I have 'bad' credit. Instead of being commended for only paying for what I can afford, I am being discriminated against!

I can not get credit reporting agencies to include my regular rent payments or utility bill payments on my credit reports--that would show that I am responsible & pay for my necessities.

Where is it written that a person has to have credit cards, debt and other bills in order to live, get a job, etc?

I am single, have no money saved (I've gone thru it in the past 3 years since I have not been able to find full time work even though I am a professional proposal coordinator and editor.) I believe the reason I have not been able to find a job is twofold--my age and lack of 'proper' credit history.

My last job interview lasted all of 7 minutes even though the phone inteview was very positive and I was told the procees I would go through when I got to the interview-- completing forms, meeting several people in different departments, etc). Instead, they took one look at me and 7 minutes later I was in my car, driving away.

This is a trend that is continuing to grow and it isn't really fair to a lot of people. It is not only with employment either. For instance, I know a young woman with three children who cannot even get renter's insurance because her husband has such bad credit and doesn't hold a job. The insurance company relates that poor credit and job history indicates a higher risk for 'deliberate accidents' to happen. It is very unfortunate that others must suffer because of the dishonesty and actions of a few.

Dennis, if your explanation is accurate, then I guess I understand, but it still feels offensive.

The better way, don't you think, to determine how a person is going to use their job (springboard, stepping stone, mill stone) would be to look at their work history. How someone handles their credit or finances is not necessarily how they handle their job situation.

That's like deciding how organized I'll be at work by looking at how I keep house. (Uh-oh!)

Marsha

Marsha,

I wasn't trying to justify the employer's method of evaluating the likelihood of a prospect's longevity, just stating that I know they do it.

Lots of people and companies do things we disagree with.

But, it is more reasonable to know they use "debt" as a means on evaluating the person's need for a paycheck, than to believe they care whether you pay your debts and in timely fashion.

I've been self-employed since 1987, so I don't have to worry about company fairness, crappy supervisors, forced retirement, being downsized, etc.

A prospective employee who chooses to live without credit, whether they pay rent, or have paid off their mortgage, has the freedom to leave a job at any time. Employers who must train new employees have to consider whether the pay plus training cost will be re-couped over the years they remain on the job.

Recruiters and HR people use any number of criteria in evaluating prospective employees, including past work history, previous experience, psychological evaluation, as well as credit/debt, in making their decisions.

That's life, and life isn't always fair.

Dennis

A very good thread. A company may use the credit check for a number of reasons. If handling cash or credit cards is involved, a poor credit check might be used as an indicator of lack of responsibility and the employer might assume the potential employee would not be responsible with company finances. Oftentimes, when credit is a gauge to disqualify a potential employee the level of debt would have to be very high. An example would be someone in the category of $10-15/hour with a bankruptcy or debt consolidation for $50,000 and a continued history of no payments or lack of payments -- so a pattern of repetition. If someone had a high debt load, but was consistently making minimum payments on time, that would not likely disqualify them.

Dennis makes a good point as well -- in that understanding someone's financial position gives you an indicator of what may motivate them to stay or leave. The cost of training is very high and no employer likes to spend time and money training a new hire only to have them leave for a higher paying position.

If you have bad credit, then start paying something toward satisfying creditors. Consistency may be looked at as more important than debt load. If you are only paying $5/month to each creditor, but doing so on a consistent basis, then at the very least you are demonstrating an effort to be responsible for the debt you've incurred.

It is not just credit checks that one has to go through for employment. It is also other BS - drug testing, reading and signing several forms, not to mention the I9 form.
Drug testing really irks me. I am not a drug addict in any way but the employer's belief that I might be one until I pass my drug test is insulting.
Is there any trust left in the work world anymore?

Yes, I have been there with a great phone interview and then the face-to-face interview is horrible.

One in particular I remember -- this over weight man who talked to me so wonderfully over the phone. He had me down for a supervisor position. When I got there, wow, the different tone and did not mention any of what he said on the phone. I was offered a job but on the lowest scale -- $8 hour. I will never forget that creep. I have to say this and it is true -- women better look youthful, slender as men like to look at that. I never and I hear most womeh don't care about what men look like; they care about the way they are treated. Why do men behave this way?

I also was a recruiter on my last job. The electric company in Denver like the resume I sent. They talked to him over the phone. When he got there, he did not even get one minute. I guess one look and looked at age and probably did not fit in with their look. I have to say that age discrimination and the way a woman looks -- this discrimination has been going on for centuries.

Remember this from a movie -- I want you to all to stand up, go to your window and say I am as mad as H____ and I am not going to take it anymore.