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Thread: Credit vs Job

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    Credit vs Job

    A pretty good article to show your kids if they are just getting into the career field.

    Bad credit and job offers don’t mix

    Jobless workers learn many companies use credit screenings


    By Tiffany Hsu
    LOS ANGELES TIMES; Los Angeles Times

    Updated: July 18, 2009, 8:57 AM / 0 comments

    LOS ANGELES — Dan Denton is stuck in a vicious cycle: He’s behind on his bills after losing his job. But lousy credit is spoiling his chances of finding new employment.

    Recruiters from a St. Louis-based investment company recently rescinded an offer after looking at his credit history, which has been mauled by overdue card payments and an impending foreclosure on his house. He and his wife, Dana, filed for bankruptcy protection in June to try to hang on to their home.

    “Of course your credit’s going to look bad when you’ve been unemployed for months,” said Denton, 60, a former fundraiser for the Crystal Cathedral in Garden Grove. “But what relevance does that have on your performance?”

    The credit report is becoming the latest hurdle for unemployed workers in a dismal U. S. job market. Up to one-half of employers use credit screening to weed out potentially troublesome hires, although estimates vary, and the practice is on the rise.

    Money woes could signal disorder in an individual’s personal life that could translate into slipshod work habits, some staffing experts said. Companies lose billions annually to employee theft. A sterling credit history points to a worker who is more likely to be disciplined, trustworthy and reliable.

    Mary M. Massad, managing director of screening services for personnel management company Administaff Inc., said credit checks help companies hire “the highest-quality individuals.”

    “It’s . . . about being proactive in order to avoid trouble down the line,” she said. “Companies . . . want an insight into how an individual conducts their own life, because that’s typically how they’re going to conduct business inside your business.”

    Screening employment prospects this way is legal in most of the country as long as it is disclosed to applicants, who must give permission for a credit check to be run.

    But some experts said that there’s no clear link between credit history and job performance and that the reports don’t paint a complete picture, omitting details about divorces, medical bills or even identity theft.

    Nancy Novak said that when prospective employers check her credit history, they see a mountain of debts and late payments, including $30,000 in credit card bills. What’s not evident, she said, is that she accumulated most of it in a failed effort to keep her small business afloat.

    A former furniture broker in Southern California, she has been unemployed for two years, sending out hundreds of resumes to no avail. She said about a third of those employers have asked her permission to run a credit check. It’s information she rather would not volunteer. Still, she always says yes, figuring companies will reject her outright if she doesn’t cooperate.

    Novak, who recently moved into her parents’ home, said she wasn’t sure if her credit problems alone have cost her employment. But she resents the notion that a checkered report flags her as a potential thief.

    “Give me a break — I don’t have a criminal record,” said Novak, 57. “My expense reports are going to be squeaky clean. I’m not going to do anything to turn over the apple cart.”

    Many employers aren’t willing to take that chance.

    Companies and organizations lose a median of 5 percent of their annual revenue — billions annually — to employee fraud, according to the Association of Certified Fraud Examiners. Asset misappropriations, including skimming from the till, pilfering equipment and the like, account for 90 percent of all cases.

    The median loss — half of businesses lose more, half lose less — is $150,000 annually.

    The Society for Human Resource Management estimates that 40 percent to 50 percent of employers, including the U. S. government, now run credit checks on potential hires.

    Applicants for security officer positions at the Transportation Security Administration are ineligible for employment if a credit check turns up more than $7,500 in past-due debt, delinquent taxes or late child-support payments. Existing security officers must also pass random credit checks to keep their jobs.

    “People are more concerned about who they’re hiring today,” said Norm Magnuson, a spokesman for the Consumer Data Industry Association. “There’s a more aggressive bar. If someone’s going to be a teller in a bank or a clerk in a jewelry store, if they’re overextended in their personal financial matters it might be a precursor to a moral hazard.”

    Most companies pull reports produced for them by one of the major credit bureaus. Federal law permits employers to see if job prospects are paying their mortgages, credit cards and other bills on time.

    But they’re not allowed to see applicants’ overall credit scores, and they must notify candidates if they were rejected because of their credit.

    But some companies bury the initial credit-search request — usually just a signature line — inside a hefty application, so that job seekers frequently aren’t aware they’re granting permission, said Adam T. Klein, an employment attorney with Outten & Golden in New York. He said firms often don’t inform prospects if their bad credit got them rejected.

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    Mary M. Massad, managing director of screening services for personnel management company Administaff Inc., said credit checks help companies hire “the highest-quality individuals.”

    “It’s . . . about being proactive in order to avoid trouble down the line,” she said. “Companies . . . want an insight into how an individual conducts their own life, because that’s typically how they’re going to conduct business inside your business.”

    Screening employment prospects this way is legal in most of the country as long as it is disclosed to applicants, who must give permission for a credit check to be run.
    Where would Brian Davis be if politics worked this way?

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    This is just another layer of 'control'

    Credit card comapnies are FORCING higher rates on high credit score individuals to force them to 'default' and push them into the risk pool, this affects their credit report. Now companies lookis to hire are using that to gauge employee performacne.

    This is a 'perfect storm' scenario unfolding before us, and most americans are to stupid to realise it.

    Its like using yourcredit score to gauge how much you pay for auto insurance. WTF is the connection between the two?

    Sub prime mortgages, the first wave decimited our economy... Credit cards and the second wave of sub primes is going to further destroy what consumer confidence is left, and employers are expecting people, by and large to have a squeaky clean credit history?

    Banks have a history of predatory practices.. There is a history of banks running along the edge of 'umnlawful practices' in order to screw over people. Now, corporations are going to use, a score, which is largely 'classifed' and has been under scrutiny for years, as a base line for your employment worthiness?

    Seriously, if you cant see what is happening, you need to be smacked upside the head.

    This article basically says that unless you only pay with cash, and use credit sparingly, unlike the commercials on tv to use credit for stupid ****, you will be casterated for it. This is forcing people who are in a higher pay rate bracket to take a lower rate not because they want to, but because they have to. this in the end will force wages lower while the cost of EVERYTHING is increasing. This is the downward spiral that will end in a worldwide depression.
    Willful ignorance is the downfall of every major empire in history.

    "Political power grows out of the barrel of a gun." - Mao, 1938

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    It don't matter what it means.

    The bottom line is, if your smart you won't get into debt and you will pay your bills.

    If you don't you'll have a difficult time getting a job.

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    If your smart you wont get into debt? What are you high?

    Say your out walking your dog, and trip... purely accidental... break your ankle. But because of sky rocketting insurance costs, you cant afford helath insurance. Now your facing $10,000+ in medical bills with out a prayer of paying them off.

    Bam... now your in debt and now your screwed. Geuss you should have trained your dog to use a litter box instead.


    Not everyone is 'stupid' with credit. There are ALOT of people out there who are extremely wise with their use of credit who are getting shafted due to the bull**** being pulled by banks.
    Willful ignorance is the downfall of every major empire in history.

    "Political power grows out of the barrel of a gun." - Mao, 1938

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    Quote Originally Posted by FMD View Post
    If your smart you wont get into debt? What are you high?

    Say your out walking your dog, and trip... purely accidental... break your ankle. But because of sky rocketting insurance costs, you cant afford helath insurance. Now your facing $10,000+ in medical bills with out a prayer of paying them off.

    Bam... now your in debt and now your screwed. Geuss you should have trained your dog to use a litter box instead.


    Not everyone is 'stupid' with credit. There are ALOT of people out there who are extremely wise with their use of credit who are getting shafted due to the bull**** being pulled by banks.
    Do like everyone else and sue the land owner. Not only will your medical bills be paid but you may end up with a handsome profit.

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    Member raoul duke's Avatar
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    Most credit cards are a contractually binding license for consensual anal sex. I hate to be blunt, but that's the best description I can come up with.

    After some youthful indiscretions - and subsequent repayment - I've been very keen on maintaining my credit score for almost the last decade. Yet, HSBC just screwed me with an interest rate increase and a few new fees on a credit card I've religiously maintained since I opened the account. Never mind that I've been a customer of the bank for 20+ years.

    It's like a bank robbery, without the masks. . . and, in this instance, the bank is actually the robber. But yes, lets prop them up so they can sell us more credit than we can afford or need. It's only profitable if you buy your money from them, right?
    One beautiful thing about having a government of the corporations, by the corporations, and for the corporations is that every disaster is measured in terms of economic loss. It's sort of like getting your arm sheared off in a car accident and thinking, "Damn, now it'll take longer to fold the laundry" as blood spurts from your arteries. - The Rude Pundit

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    Quote Originally Posted by Surfing USA View Post
    Do like everyone else and sue the land owner. Not only will your medical bills be paid but you may end up with a handsome profit.
    And if the land owner lets the public right-of-way that crosses his property go unmaintained to a point where someone injures themselves? The long ago settled law insists that he is, at least, partly liable. It's why you buy homeowners insurance.

    But whatevs, no one likes lawyers until they actually need one or something. . .
    One beautiful thing about having a government of the corporations, by the corporations, and for the corporations is that every disaster is measured in terms of economic loss. It's sort of like getting your arm sheared off in a car accident and thinking, "Damn, now it'll take longer to fold the laundry" as blood spurts from your arteries. - The Rude Pundit

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    Quote Originally Posted by FMD View Post
    If your smart you wont get into debt? What are you high?

    Say your out walking your dog, and trip... purely accidental... break your ankle. But because of sky rocketting insurance costs, you cant afford helath insurance. Now your facing $10,000+ in medical bills with out a prayer of paying them off.

    Bam... now your in debt and now your screwed. Geuss you should have trained your dog to use a litter box instead.


    Not everyone is 'stupid' with credit. There are ALOT of people out there who are extremely wise with their use of credit who are getting shafted due to the bull**** being pulled by banks.
    The thread was created because employers are beginning to use credit checks for employment. Like it or not that's the truth!

    But right away you want to give a situation that is an extenuating circumstance. A majority of Americans do NOT fit into an example you mention. They are purely fiscally irresponsible and then expect someone else to get them out of it!

    Here is a prime article that was in this month’s Reader’s Digest.

    http://www.rd.com/advice-and-know-ho...cle150000.html

    A couple excerpts from that article…..

    Household incomes, adjusted for inflation, slid about 1 percent between 2000 and 2007, while total retail spending surged 16 percent.
    Professors at four universities looked at what drives economic decision making. It turns out our brain really is of two minds. When students chose a small reward now over a bigger gain down the road, the emotional brain battled for control over the logical brain—and won.
    Americans under age 35 spend 19.7 cents out of every dollar they earn just to make payments on what they already owe. Debt burdens for all age groups have climbed since 2001, and it's only getting worse as interest rates—and balances—rise.
    In 2002, Social Security paid about 40 percent of what typical retirees were making in their last year on the job. By 2030, experts like Alicia Munnell of Boston College's Center for Retirement Research predict, the "replacement rate" will drop to 30 percent. Like it or not, we're all going to have to save more for retirement.

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    Member raoul duke's Avatar
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    Ugh, Readers Digest. . .

    BTW:
    Unable to find a job, he decided to take a year off from the "real world" to tend bar and teach skiing in Colorado. "My class feels cheated out of opportunities that existed just a few years ago," says Wolfson. "It's frustrating."
    Cry me a river, kid. Then drown in it, please.

    Also, in my opinion, anyone who takes advice from Readers Digest deserves the misery that will probably befall them. I'm speaking as someone who, in their youth, waited for each month's "Life In These United States" column in anticipation of a good chuckle.

    Milquetoast bathroom reading, at best.
    One beautiful thing about having a government of the corporations, by the corporations, and for the corporations is that every disaster is measured in terms of economic loss. It's sort of like getting your arm sheared off in a car accident and thinking, "Damn, now it'll take longer to fold the laundry" as blood spurts from your arteries. - The Rude Pundit

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    You want to trash the rag? Then trash the rag....

    You want to disupute the facts? Dispute the facts....

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    Member raoul duke's Avatar
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    Quote Originally Posted by Enough View Post
    You want to trash the rag? Then trash the rag....

    You want to disupute the facts? Dispute the facts....
    huh? Trash the rag? Sure. It's a piece of garbage. That a whiny prig has to put off the "real world" to work supposedly non-real jobs just breaks my heart. Not really.

    What facts? It's not a fact-based article other than touching on obvious facts as it advises recent college grads on money matters.

    But like I said, Readers Digest - in my opinion - is garbage. Read it at your own peril.
    One beautiful thing about having a government of the corporations, by the corporations, and for the corporations is that every disaster is measured in terms of economic loss. It's sort of like getting your arm sheared off in a car accident and thinking, "Damn, now it'll take longer to fold the laundry" as blood spurts from your arteries. - The Rude Pundit

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    Quote Originally Posted by raoul duke View Post
    What facts? It's not a fact-based article other than touching on obvious facts as it advises recent college grads on money matters.
    EXACTLY.......

    Now put the bong down, turn on the lava lamp and chill for a bit!

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    Quote Originally Posted by raoul duke View Post
    I've been very keen on maintaining my credit score for almost the last decade. Yet, HSBC just screwed me with an interest rate increase and a few new fees on a credit card I've religiously maintained since I opened the account. Never mind that I've been a customer of the bank for 20+ years.

    It's like a bank robbery, without the masks. . . and, in this instance, the bank is actually the robber. But yes, lets prop them up so they can sell us more credit than we can afford or need. It's only profitable if you buy your money from them, right?
    A few weeks ago I finally had the pleasure of telling Bank of America to go **** themselves.
    When I bought my new Nissan 3 years ago.
    I qualified for the low 3.9% financing.
    It was thru Bank of America.
    A year and a half ago.
    I got a B Of A Visa card.
    It offered interest free til July 2009
    After that, 8.75%

    I immediately put $7,000 on it to pay for part of my new deck.

    In April I received a letter stating that As of July 1st, my new interest rate would be 18.75% along with various fees.
    At this time, I had about $2,000 left on my balance.
    My credit score is still in the mid 700's

    So in April, I paid the minimum.
    Also again in May.
    Then in June paid off the balance.
    Included with my check was the shredded pieces of my visa card along with A little note cancelling it.
    June was also the final payment on my truck loan.

    Was a pleasure to scream at the B of A telemarketer from Bombay offering me a great deal on a new Visa card with a $15,000 limit!
    I explained how my number was on the Do not call list and she shouldn't be contacting me.
    She said that since I was a current customer she was allowed to call(a little loophole along with non profits)
    I explained that as of June 26th, I was no longer a B of A customer and if she called again I would file a complaint.

    So then the mail barrage began.
    So I opened up one of the applications and added my own addendum on the contract.
    "B of A agrees to credit, at a rate of 18.75%, any unused portion of the $15,000 credit limit compounded monthly."
    Wasn't too sure on the legalities of this so I signed it Richard Hurtz.
    As of this post.
    I have not received the card.

    So I played by the rules and kept within my means.
    Never sent a late payment.
    And now they thought they could screw me to recoup some of the bad loans they made in the past.

    All this after receiving billions in Taxpayer bailout money.
    **** em.
    Let them fail.

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    Member ILOVEDNY's Avatar
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    Quote Originally Posted by Enough View Post
    The thread was created because employers are beginning to use credit checks for employment. Like it or not that's the truth!
    Actually.
    Some employers have been doing this for years.

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