Being denied employment because of a credit check :( - page 4
Hi, I graduated last year..In order to get the job, they told me that they have to run a credit check on me..I know that I owe a lot of money to creditors but what my potential employer does not know... Read More
Aug 9, '07 by pacificaQuote from sjt9721Don't even get me started on how much I hate MBNA. They are truly evil. They did the same thing to me and when I called to try to negotiate down my interest rate (after making payments on time for two years) they refused.[/list]When I was working on paying off my debt, I set aside "x" amount of money each month to go toward the cards. The cards with the lowest APR got the minimum amounts, and the card with the highest got all the rest of the "x" amount. I was never late.
Example: $1000 per month to credit cards. Cards A, B, & C had low rates and I paid them the minimums: $50, $100, & $150. The other $700 went toward Card D since it had the highest rate. When Card D got paid off, the $1000 was divided the same way among Cards A, B, & C.
MBNA evidently got tired of only getting the minimum. They jacked my rate from 2.9% to 22%. When I called, they said it was done because I wasn't "making enough progress" on my debt. Guess they weren't satisfied getting minimal interest from me. I promptly called one of my other card companies & negotiated a deal to transfer that balance. Now MBNA doesn't get any of my money!
That company wa very happy to offer me sky-high credit limit at 9.99%, then jacked up the rates without notice. Thank god I just paid that balance off. Lesson learned.
Aug 9, '07 by pacificaQuote from motorcycle mamaI don't think we got the full story from the OP but still I think the response I quoted was really more about getting a chuckle from everyone at the OP's expense, rather than offering any good financial advice. I just have trouble with that kind of humor.It isn't helpful to encourage or commend anyone to carry such an obviously bad financial plan either. I don't think the comment was rude, it was one of shock.
Other postings on this thread (yours included) have offered polite and thoughtful suggestions that the OP would be well-served to consider.
Just my humble opinion.
Aug 9, '07 by FlyingScotQuote from Freedom42Sorry. That's what I meant. I had been up all night and sometimes I get a brain/hand disconnect.Just to clarify: A mortgage is not tax-deductible. If only it were so! It's only the interest on the mortgage that is tax-deductible.
Also to the person who didn't think spending 10K to save 3K was smart. As someone pointed out my house is appreciating at a rate of about 6% a year so in the end I will have paid less for something of a much higher value. And for me, single no kids, the tax write off is a tremendous help. I'm seeing virtually no return on the shorts I bought with my Visa card.
Aug 9, '07 by CHATSDALEif you go to finance a car or a house you will find that even if you pay on time a large debt would be a red flag for a lender
also, i have heard but am not sure about this, if you live with a family member other than a spouse in THEIR home that puts them is a less desirable credit level when you pt to borrow
HOWEVER that does not have anything to do with a job application
if making poor life decisions were a reason to deny employment there would be a lot of empty hospitals
Aug 9, '07 by kukukajooTo the original poster- unless you are making more on your savings than the 6% you are paying out on your credit cards (which is very doubtful in this economy) then you are not being wise about your funds and despite you having money in the bank, it is costing you more money each month.
The best thing to do is begin by paying off the credit cards that you are paying the largest interest rate on first, then work down from there, paying off the ones with the least interest last.
Also, you may want to close or consolidate some lines of credit. When you go to buy a house, even if you are using a small portion of credit lines available to you, they will take into consideration that ALL available credit is being used. That means that say you have only a balance of 5,000 on your cards but you have cards with limits totaling $100,000 they will assume that you will use all of that at some point and that could really jam you up. This may be the reasoning behind the empolyer as well.
Some non-profit consumer credit agenices may be able to analyze your credit cards and help you come up with a plan to pay them off quicker.
Aug 11, '07 by Sheri257Quote from kukukajooJust FYI ... I do have a fixed rate of 4.8 interest on one of my credit cards ...To the original poster- unless you are making more on your savings than the 6% you are paying out on your credit cards (which is very doubtful in this economy) ....
Obvously that deal isn't available now but, Citibank was making those offers a couple of years ago ... which is when I locked in that interest rate.
Hopefully, there's nothing in the small print that would allow them to change it (i.e. like Capital One recently jacking up the rates on their cards).
But, so far, Citibank hasn't done that yet, at least in my case.
Aug 11, '07 by FlyingScotQuote from Sheri257Don't get comfortable on that. I recently got an offer from them that beat my current credit card hands down until I looked at the extremely, microscopically fine print on the back. It clearly stated that they could raise the interest rate at any time for any reason to whatever interest rate they wanted. So I called them to clarify. The customer service person stated that that is how all their accounts are managed. I asked her if that meant I could apply at x% interest and they could jack it to 25% the very next day just because they wanted to. She said "uh, yeah." I asked her if she thought that made this offer a great deal and she couldn't answer the question. It was kind of funny. The moral of the story is be very careful.But, so far, Citibank hasn't done that yet, at least in my case.
Aug 11, '07 by jojotooThis sounds very bizarre to me. A credit check is going to furnish your credit score. 780 is an excellent score. So how can you have bad credit?
Also, most don't ask for a credit check unless you are going to have access to the companies monies or financial records. This would not apply to most RN positions. A background check yes, but not a credit check.
Finally, for all those who are making comments about the way you manage your money - you must be doing something right to have that high of a score. Keep it up!
Aug 11, '07 by Sheri257Quote from FlyingScotYeah, I called too just to make sure and they told me, at the time, that they couldn't change it but ... with today's credit scare, who knows.Don't get comfortable on that. I recently got an offer from them that beat my current credit card hands down until I looked at the extremely, microscopically fine print on the back. It clearly stated that they could raise the interest rate at any time for any reason to whatever interest rate they wanted. So I called them to clarify. The customer service person stated that that is how all their accounts are managed. I asked her if that meant I could apply at x% interest and they could jack it to 25% the very next day just because they wanted to. She said "uh, yeah." I asked her if she thought that made this offer a great deal and she couldn't answer the question. It was kind of funny. The moral of the story is be very careful.
Aug 11, '07 by tencatWas the OP trying for a job in corrections? I know that one has to have a clean history financially so that potentially prisoners would not be able to take advantage and try to 'buy' favors, or have their families 'buy' favors from the prison employees.
It is always a better idea to pay more than the minimum on any credit card. My problem is I have some savings, but not as much as they recommend. I put a lot of money toward any credit card debt I have (which isn't a huge amount, thank goodness).
Aug 12, '07 by Sheri257Quote from multicollinarityMaybe not. There is a huge credit scare going on right now. The markets are in a panic because of these bad home loans, excessive consumer debt, etc. which is why credit card companies are jacking up their rates and the stock market dropped 400 points last week.There has to be more to this story.
Maybe these concerns are trickling down to when they do these credit checks as well.
The pendulum always seems to swing from one extreme to the other. The banks created this problem by suspending their conservative lending guidelines and giving loans to people who weren't really credit worthy. Now, because it's starting to go bad ... they're squeezing everybody on credit.
Anybody could see this coming ... the loans they were making were outrageous. Unfortunately, they end up making everybody pay for their mistakes, even those with good credit.Last edit by Sheri257 on Aug 12, '07
Aug 12, '07 by justme1972The reason thatto credit checks, is that just like coming up wtih how much to charge you for insurance premiums, it all boils down to statistics.
Statistically, people with extremely poor credit (below 580 credit scores), are more likely to call in, are more likely to be dishonest, and are more likely to steal.
That is the real reason you are seeing credit checks becoming more and more common in professions that have nothing to do with finance.
With that said, the OP's credit score was beyond excellent...the scale only goes up to 850.
I am wondering if someone in HR just shot off at the mouth and that really wasn't their official policy. With a credit score as high as the OP's, I DO NOT buy the fact her credit was the reason she didn't get the job...that is why she needs to get to the bottom of it. It would be different if they didn't give her a reason at all...but someone at that hospital decided to give her a reason.
If I was her, I would actually go down and very, very politely, ask to speak to the Director of HR or the Nurse Recruiter.