Disqualifying Job Applicants based on Credit History - page 2
Hi everyone, 2BaNurse's post about her financial predicament and many responses to her made me want to put a question out there. Do you think it is fair for an employer to disqualify a job... Read More
Dec 20, '02I agree Gator, my credit history is no one's business except mine and who i do business with.
the idea that my car insurance or my employability can be based on how much debt i have, is utter b.s.
i don't care what my credit report says; i'm not letting my family starve so i can pay that magazine subscription that i never ordered in the first place....
Dec 20, '02Credit report does not have anything to do with a persons trustworthiness, responsability, accountability, nor if someone is a great nurse or not. A credit report only reflects a persons ability to pay bills, their SO's ability to bills, and that they are luckey enough not to have any tragidy in their life that would affect the ability to pay bills. I heard recently from my mortgage broker that 65% of Americans have a C- to D ratings, which isn't very good, and that only 2-3% have an A rating. More people have F's than you would think.
Dec 20, '02I agree that it would feel like an invasion of privacy. That it doesn't seem right for someone to check your credit rating. At least they're telling you that they are doing it. Any number of agencies and credit card companies could be checking your credit rating right now and you wouldn't even know it.
The employer is looking out for his/her best interest.....NOT YOURS. By looking at a low credit rating (regardless of reason), and not hiring that person, they may be attempting to avoid future problems with an employee that has financial or family issues that might cause that employee to call in when they are scheduled to work. I've seen people call in because they have such issues. There may also be a negative trend with employees that have that kind of credit rating.....there has to be a reason it's done.
I'm not saying this to upset anybody on this board. I'm well aware that there are bad things that happen to good people beyond their control...that's life. But, employers are looking out for number 1....themselves.
At least you didn't have to go through a polygraph test or psych consultation like my hubby did when he was applying for a job at his police department. Talk about stress!! There are way worse things you could go through to get a job other than a credit check.
AnneLast edit by KC CHICK on Dec 20, '02
Dec 20, '02I have horrible credit. I messed it up when I was 19 years old and stupid . I am a different person now at 27 than I was when I was 19.Becoming an RN would allow me to make more money and perhaps PAY MY DEBT and clean up my credit. I do not think it is fair for a potential employer to punish me for a mistake that happened 8 years ago that has nothing to do with the position I am applying for.And also sometimes people fall into financial hardship and have no choice but to live off of credit cards. I was 19 and needed a place to live and had no money and no car and not much job experience(no one will hire you without experience) and I had to live off of cash advances and such. There are a lot of debts I have paid off that are still on my credit report now. Maybe I shouldn't get a job working as a credit counselor but my credit certainly shouldn't prevent me from becoming a nurse.
Dec 20, '02KC CHICK-I would rather go through the polygraph and pysch eval then have my credit checked. In my case, it would be far less embarrasing.
Dec 20, '02I am just so shocked that this invasion of privacy is allowed!!!!
Then again..........it's just Big Brother...........
I mean, with a nursing shortage, I don't believe the health care industry can worry about people not paying their bills years before....
Dec 20, '02Perhaps the credit report is a way they get you to illicit information that is illegal by federal law for them to ask. A self insured hospital and others would be greatly interested to know that the reason for the poor credit is that hubby was hospitalized and now has a chronic condition that resulted in loss of income plus massive medical bills. They wouldn't want to hire that kind of liability. Seems the hospitals and other employers always find a way around the law to get the info or what ever it is they want. There are thousands of reasons people end up with poor credit and it is none of the employers bussiness nor is it legal for them to ask you those questions. I think that pulling the credit report should be illegal too unless someone is working with large amounts of cash. Nurses rarely deal with the financial part of the biz. Why is this legal???? What a crock of you know what.
Dec 20, '02KC Chick,
No one can check your credit without an expressed WRITTEN AND SIGNED CONSENT. Anyone that has had has a grounds for legal action. Your credit can be checked only if you sign the form, and that form does entitle them the right to pull a CB every 6 months if their is an abnormalcy, skip, default, in the note.
That is how most creditors find you. One skips out, and then applies for an apartment somewhere halfway across the nation.
The address is automatically recorded and so is the firm doing the inquiry. I never laughed so hard in my life once when a guy who owed money on a vehicle had skipped out...couldn't be found for a year! Lucky as can be, I pulled a CB on him and he was at that moment attempting to buy anew vehicle on the east coast. I called the dealership, the repo man followed him home! He never even figured out the stroke of luck i had. Right there on the CB was his address, just recorded by the dealership!
I will reiterate that a CB is the quickest, most economical way for the employer to verify you are who you say you are and not possessing several SS nos. They have an extremely big liability here to governmental agencies. I sincerely doubt that credit worthiness is the real issue, may be a small part in similarly qualified candidates, but certainly not as a protocol for employment. The stability of your residences, which is also shown on a CB, will have more influence on their decision. If you change residences often, you will also change jobs often, there are documented studies out there that support this. I say this because I know too many nurses who have crappy credit, but have much better residence history and they seem to be hired all the time.
Dec 20, '02As I has stated in 2banurse's post, employers must guard themselves against SS fraud, and a credit bureaus will show immediately if the adress you state in the app is accurate. Lot of people out there with multiple SS nos, and a CB will instantly verify this as well. If you are Jane Doe from Idaho and say you have lived there all your life in Boise, what were you doing in Mt Pleasant Texas for the last 3 years with Bo Pike's SS no.? Makes you look a little risky doesn't?
As for signing the form to ALLOW them to pull my CBI, yes I signed, but I did not feel as though I had any other options-- if I wanted a job.....
This will continue to be the norm and other companies and hospitals will start to do this because people need jobs and this is a formality of getting one, unless people ( A LOT OF PEOPLE!!)refuse to let this practice continue.
Also I just wanted to say that my employer KNOWS exactly WHO I am....I worked there for 5 years and quit to have my son and if that is not good enough, I was BORN there!
Dec 20, '02MEdicare requires that persons hired in healthcare facilities not have been convicted of any Medicare fraud---could that also possibly appear on credit report along with posting on Medicare website.
Dec 21, '02Here's another injustice: I have a really bad credit history, but I'm a reliable employee AND a good driver, 20 years without a single moving violation and no accidents. Guess what--insurance companies determine your rates based on your credit report! I probably pay more for my auto insurance than my neighbor, who has several tickets but whose wife makes a ton of money so they have no financial problems. It stinks on ice, I tell you......but then, I've never been denied a job because of my credit rating, maybe because I tend to seek jobs at dysfunctional facilities that have financial troubles of their own. That, however, is a story for another day.
Dec 21, '02Oh please. This started over a $700 debt that someone felt they couldn't pay. So they didn't bother, thinking it would never find them. What did you do, throw the bills away without even calling the creditors?
This is gonna sound really callous, and I FEEL callous becouse of the minimal amount of money this thread started over. Want to hear the boo-hoo sob story???
I had it made. I had credit, a house, I was golden. **** happened. Between the house, the car and all the rest it wasn't like a mere $700 this all started with. PLEASE. I wish it was only $700. The fact of the matter is, you signed a contract. Legally binding to pay a debt -- you charged that card according to the terms. And you failed to make even the slightest effort! And people blame "interest". Sorry, you use other people's money, you get charged according to the contract you agreed to by using their money.
Why do I know this? Because after 48 weeks of chemo I was in debt over $40,000. Not a mere little $700. If I could manage to work menial jobs after I was well, while going to school to keep a JUDGEMENT in court off my record by MAKING THE MINIMAL EFFORT of calling my creditors weekly anyone could. Did you decide you shouldn't call them when the bill came in? Perhaps filing it away in the trash would make it go away?? I had serious debt which you could never comprehend. We are talking UNSECURED debt of 40K and not even the car, the house etc. I almost lost my LIFE.
Sorry to sound so mean, but those creditors were on my behind, which I worked off to pay them. I never filed bankruptucy. I worked all my life and all was taken away with a doctors' visit.
What did you buy with your mere $700 of debt? I bought my LIFE and paid for my medication using other people's money. I didn't get a nice pair of shoes, or a new sweater. And I managed to be a single person who LIVED and worked to pay off those 40,000 of debts. In fact, last month I made my final payment on the last of the credit cards I lived off of while I was unable to work due to the chemo. So all this whining about shopping too much and building up debt really has me rather in a tizzy.
Flame away, I don't care. I lived through hell and I am on the other side -- with my debts paid because I talked to my creditors and didn't file them in the trash with the rest of my life when it went to hell.