As I type this, a colleague of mine is filling out an application for a position at another facility. The background check states that it checks EVERYTHING (pretty personal!) including bankruptcy, which she declared a couple of years ago.
She was wondering if she needs to worry about not getting this job because of the bankruptcy? How much does credit play into whether or not someone lands a job? It seems like it shouldn't make any difference.
Thanks for any input. Unfortunately I don't have much help to offer her.
When you borrow money you sign a contract stating you will pay it back in a prescribed manner, for example $200 on the 1st of each month. If you don't pay it back as agreed, you are basically stealing from the lender, causing them to lose money on your account. If you have any doubt that you can repay your debt, don't do it.
If you have bad credit it means you haven't paid your debt as agreed. There are good reasons for having bad credit but this is rare. You can name all the exceptions you like (your brother-in-law who had a sudden devastating illness and lost everything and now his children have to beg on the street) that doesn't change the fact that most people with bad credit got that way through bad choices. I believe most people that have bad credit are in that position because they have made poor financial choices. And people who make poor choices in one area of their life, make poor choices in other areas. Like it or not, we are all in the situations we are in because of the choices we make.
If for some reason you do have a run of bad luck and bad credit, fix it as soon as possible. A lot of people get into trouble because they panic and stick their head in the sand and ignore the situation - that makes it much worse.
Having bad credit is not a reason, in itself, to deny credit anymore than good credit, in itself, is a reason to hire someone. But in general, you credit score speaks to your competence and character.
I know for a fact that they DID know and yeah ... they should have moved.
I grew up in New Orleans. I moved in the '80s because it made no sense to stay there. Even back then, everybody knew the big one would hit one day. And they knew it would be bad because there were series of newspaper articles on the subject every couple of years or so. There were also constant local news stories about the coastal erosion and how it was going to make the next hurricane a lot worse than previous hurricanes. Louisiana loses several miles of coastline every year and, even 20 years ago, people knew that it would eventually cause a disaster.
I constantly tried to talk my sister and mother into moving yet, they refused. When you live in Lousiana, you know all of the politicians are corrupt, and that you can't count on any decent infrastructure to protect you. They don't bother to fill the potholes in the streets, much less keep up the levees. Everybody knew this because the corrupt Levee Board and other corrupt politicans were constantly in the news. Louisiana is world famous for corruption.
Then, when my mother died three years ago I again suggested that my sister should move since, with Mom's passing, there really wasn't any reason to stay. There was, 20 years later, yet another a series of local newspaper articles on the levees, the coastal erosion and the disaster that would happen if a hurricane hit. My sister would have been able to sell her house at a very nice price back then but, she refused to move. There had been a series of floods in the city and I told her that she better, at the very least, beef up her insurance but, of course, she didn't. Instead, she kept borrowing on her home equity.
Now, of course, my sister has credit problems and wishes she had moved. So who's fault is that ... really? It's not like people didn't know. It's been all over the local news for decades and I don't think you'll find a single person in New Orleans who didn't know this would happen unless they've been hiding under a rock for the last 20 years.
Only 20 percent of New Orleans homeowners bought flood insurance ... even though the place flooded on a regular basis for several years before Katrina. So, again, who's fault is that?
I live in California where fires and earthquakes are the biggest problems. Three years ago we lived in an area which, because of extended drought, had become very high risk for fire because all of the trees had died. You were literally surrounded by matchsticks that could go up in flames at any time. And we couldn't get insurance coverage because of the fire risk which, again, had been covered extensively by the local newspapers.
We knew it was only a matter of time before disaster struck so ... we moved. Four months later, the big fires hit and the place went up in flames. A total of 5,000 homes were lost.
The biggest problem people had with the California fires was not upgrading their insurance to keep up with home values. So, even though I now live in a lower fire risk area, I've still doubled up on my fire and earthquake insurance. Since my home value has gone up significantly, I've made sure I'm covered on that as well.
Do you know how much it cost? Only 40 extra bucks a month. I also made sure I have insurance with carriers who had good track records of paying claims after the fires.
So ... it is possible to move and take precautions avoid disaster. The warning signs are usually there if you choose to pay attention, take some responsibility and actually do something about it. I know, because if I've done it more than once.
:typing
So Louisiana is basically an uninhabitable place where no business, trade or human living should take place? Everybody who lived there should have known what was going to happen and if they now have bad credit due to a massive hurricane and flood of historic proportions it is a flaw in their character? Sorry I just can't live my life judging people that way.:uhoh21: Besides that, not everyone had the means to move! Where were they going to go? With what money? The entire credit system is based on risk. This is why people who are a higher "risk" (but still able to gain credit) pay higher interest rates and such. Yes there is a contract that needs to be heeded by the creditee, but then again the creditor fully understands the risk as well in lending. We all know people who spend and spend with no regard to their financial situation. Yes this is stealing and is wrong. I am not talking about folks like that. What i am saying is that there is a large population of people who do NOT fall under the frivilous, irresponsible spender category and yet still may end up in a bad situation with their credit and be lumped in with the others. Hopefully this will never happen to those who think they could never be in this situation. Again the question is what are we going to do with these people? If they cannot find good jobs due to credit history, what happens to them? Should they just work at minimum wage jobs and on government assistance? This is my problem with this. It isn't truly practical.
and besides credit there are other things that they can decide is a "character" flaw. What if employers suddenly wanted to know how many times you have been married? How long you have been with a current partner? How many speeding tickets you have gotten? how many times you were named as a defendent in a legal suit? etc... None of these things are a good measure of how well you will do your job and what sort of employee you will be. Neither will a credit report.
I guess what they want to know is if you're going to steal their narcotic box and sell it on the street to pay your bills.
Really though, it used to be a measure of your responsibility. Now, it's meant to investigate whether or not you have problems with alcohol, gambling, debt control or some other character deficit that will impair your ability to do the job (or embarass the agency). The background check is not to be released to anyone outside the agency applying for it...and you can sue the heck out of them if they do disclose. Of course, that doesn't repair the damage done right then but there IS repercussions to the agency. (And you always wanted to be rich, right? )
I don't know. The whole situation urks me. I don't think credit is a true measure of responsibility, especially if the score is the bottom line. Employers receive all kinds of applications all the time. If they overlook a person simply because of their credit, then that person will never get a chance to explain why their credit is 601, or whatever the case may be. I have said it before, I'll say it again. I don't have good credit. It's not because I'm irresponsible now, it's because as a "cool" teenager with a car, fresh out of high school, thinking I knew it all- I made really unintelligent decisions. At 18 I was so "smart" that I went out and got all the college credit offers and store credit I could. I figured, "Hey, I'm working, I'll pay the minimums...$20 a month is NOTHING!" I was a complete idiot, even though my parents discouraged me activity. Long story short, I ended up with a lot of debt that I had to pay off. I became unemployed, relocated and some of my cards went into collections. That was seven years ago. Now I know better...but guess what? This past October my purse was stolen, with all my personal info. I became a victim of id theft. I put a fraud alert on my credit, yet two days ago I get an email from Experian monitoring saying that Sprint has added a negative report to my account, to the tune of $500! Opened just this past January. I don't have Sprint- my husband works for Verizon, we have an employee account, and have been happy with them for almost two years.
That little blurb took my credit down 10 points. I worked hard to get those 10 points, and every point counts. I did everything I was supposed to do to avoid becoming a victim, and it happened anyway. Although I disputed the incident, who's to say that something else won't pop up tomorrow or the day after...or the day after... And then to think that I may never get a chance at the American dream because of immaturity at 18 and some unscrupulous person taking my information...and possible employers like the ones in this thread who don't give a darn about the individual, only about a credit score. It's a sad state of affairs.
I'm not saying that some posters aren't correct in saying that credit can be a judge of character and responsibility, but by no means should it be the sole indicator...and it really has no bearing on a potential employees job performance or dedication to their work.
So Louisiana is basically an uninhabitable place where no business, trade or human living should take place? Everybody who lived there should have known what was going to happen and if they now have bad credit due to a massive hurricane and flood of historic proportions it is a flaw in their character? Sorry I just can't live my life judging people that way.:uhoh21: Besides that, not everyone had the means to move! Where were they going to go? With what money?
Fine ... if you can't move ... then at least buy the insurance. It's not that expensive .... about $30 a month. As I stated in the previous post, only 20 percent of New Orleans homeowners bought flood insurance. To not buy it was totally irresponsible.
When I was a kid, our basement constantly flooded. The city has always flooded. The entire city is under sea level and sinks a few feet more every year. Of course, the city never maintained much less upgraded the pumps so the flooding gets worse every year yet ... people still didn't buy flood insurance.
Again ... who's fault is that? When the town is flooding all the time, and you still don't buy flood insurance (which is available to everyone because it's a government program) ... why aren't they personally responsible at that point?
And don't tell me they don't have the $30 for the insurance. The locals always seemed to have money for gambling and booze. Just ask Harrah's casino, where 80 percent of the gambling business actually came from locals ... not tourists. In New Orleans, things like Mardi Gras is always more important than taking care of business ... like flood insurance.
I always thought New Orleans was uninhabitable, which is why I moved a long time ago. Things such as drinking water quality has always been substandard. Every time I've gone back to visit, it's only gotten worse. New Orleans has always been a third world country and always will be.
People always complained about it yet, those who did have the means to move still refused to do so. They knew how bad it was but they chose to do nothing about it. At a certain point, you are responsible for your own choices.
There sure are some criticizing people on this board. Geez, I sure hope they never get sick or have something really bad happen to them. I know people who have filed that would never have imagined doing so due to circumstances beyond their control (a sick child). God forbid, this should ever happen to some on this board!
It is the height of rudeness to make an assumption that they have not gone through devasting life altering events.
I think that the vast majority of those of us over the age of 30 have dealt with catastrophic illnesses/events that occur. And some of us suffered through and paid the bills, even when it took years to do so, required working when we could have drawn disability, and required major sacrifices.
And others of us did not have the fortitude to do so.
Regretfully, those of us that made those sacrifices have earned the "bonus points" and reputation that comes with it. I do not see why it shouldn't indicate that we have a slightly better track record with responsibility.
Some people get dealt a bad hand and yet continue to "stand and deliver", while others do not. There are those that have been "victims" of Katrina, took the challenge that life threw at them, and have gone on to be amazingly successful in new careers and in new places. And will be much better off than they would have if they had stayed in NO.
And then there are those that refuse to go on, to adapt and change, and that are stuck in a rut, and are doing little to get out.
Who do you think will be the more sucessful employee...those that roll with change or those that sit in the rut, because life was unfair? Who do you think will deal with a work crisis better, those that adapt to life changes successful or those that do not?
It is the height of rudeness to make an assumption that they have not gone through devasting life altering events.
I think that the vast majority of those of us over the age of 30 have dealt with catastrophic illnesses/events that occur. And some of us suffered through and paid the bills, even when it took years to do so, required working when we could have drawn disability, and required major sacrifices.
And others of us did not have the fortitude to do so.
Regretfully, those of us that made those sacrifices have earned the "bonus points" and reputation that comes with it. I do not see why it shouldn't indicate that we have a slightly better track record with responsibility.
Some people get dealt a bad hand and yet continue to "stand and deliver", while others do not. There are those that have been "victims" of Katrina, took the challenge that life threw at them, and have gone on to be amazingly successful in new careers and in new places. And will be much better off than they would have if they had stayed in NO.
And then there are those that refuse to go on, to adapt and change, and that are stuck in a rut, and are doing little to get out.
Who do you think will be the more sucessful employee...those that roll with change or those that sit in the rut, because life was unfair? Who do you think will deal with a work crisis better, those that adapt to life changes successful or those that do not?
i think those that are out there actively trying to recruit work and BE responsible shouldn't have their efforts and prospects snatched right out from under them because of their credit history. What happened is what happened, but are these people just unusable to society's workforce for the next 7-13 years until stuff falls off of their credit? And just how are people supposed to "pay their debts" if they can't get a job? Kind of like the new graduate who can't get a job because he needs experience, yet he can't get experience until he gets a job. I still think the entire idea is impractical. You are denying people the chance to correct mistakes (that had nothing to do with their work history by the way) and make their contribution to society. You are denying them a fair chance at making a living and when they can't find work they will just be further taxes to the system. This is UNNECESSARY!Again I ask what do we do with these people? I posted above that there are a lot of other ways people "think" they can judge "character". Should we employ those too to make sure they are fit to work?
p.s. - Lizz, yes there are people in this country for who $30.00 per month for "insurance" is asking too much. If you balk at this idea, well then I guess Ijust can't get you to understand that not everyone has a situation where they have resources at their finger tips to move, pay for supplemental insurances, deductibles etc... Also not all poor people, or New Orleans citizens are drug addicts, gamblers, drinkers and smokers. I am sure there are many, but not all are. We may be at an impasse. We seem to have very different views (at least on this issue). I would never classify myself as one with a bleeding heart who thinks everyone needs a hand out, howver I have empathy for people and I can't get past the notion of turning away qualified people with references and a good work history who are doing the responsible thing by actively seeking employment because in 1999 they had a bad year financially. Doesn't make sense to me.
p.s. - Lizz, yes there are people in this country for who $30.00 per month for "insurance" is asking too much. If you balk at this idea, well then I guess I just can't get you to understand that not everyone has a situation where they have resources at their finger tips to move, pay for supplemental insurances, deductibles etc...
My sister certainly had the means to pay $30 a month for flood insurance. Her husband is a lawyer and she's an accountant. Instead, she was too busy spending $50,000 to add on an enclosed patio to her house which she really didn't need (yes, I know ... how an enclosed patio ends up costing $50,000 is beyond me).
When the area we lived in became a major fire hazard because all of the trees had died from drought ... we were broke at the time. And because we were broke, it took us a year to save enough money to get out of there ... but we did it. We significantly cut back on our spending and I took a second job part time job so we could save enough money to move.
I knew that if we stayed there the place would go up in flames ... which it did four months after we moved. There had already been one fire that had nearly burned up the town and I wasn't going to sit around and wait for the next one.
You can often avoid disaster if you want to ... even when you're broke ... because the warning signs are often there long before disaster happens, giving you time to prepare. But, you have to want to do something about it and not wait until it's too late.
Who do you think will be the more sucessful employee...those that roll with change or those that sit in the rut, because life was unfair? Who do you think will deal with a work crisis better, those that adapt to life changes successful or those that do not?
p.s. - Lizz, yes there are people in this country for who $30.00 per month for "insurance" is asking too much. If you balk at this idea, well then I guess Ijust can't get you to understand that not everyone has a situation where they have resources at their finger tips to move, pay for supplemental insurances, deductibles etc... Also not all poor people, or New Orleans citizens are drug addicts, gamblers, drinkers and smokers. I am sure there are many, but not all are. We may be at an impasse. We seem to have very different views (at least on this issue). I would never classify myself as one with a bleeding heart who thinks everyone needs a hand out, howver I have empathy for people and I can't get past the notion of turning away qualified people with references and a good work history who are doing the responsible thing by actively seeking employment because in 1999 they had a bad year financially. Doesn't make sense to me.
I agree. I know $30 doesn't seem like a lot, but it sure is when you don't have it! I can think of several times in my life where I couldn't spare ANY money - had to struggle to pay for food and electricity.
I agree. I know $30 doesn't seem like a lot, but it sure is when you don't have it! I can think of several times in my life where I couldn't spare ANY money - had to struggle to pay for food and electricity.
Yeah ... me too ... which is why I got a second job. I'm sure all of us have been through tough times but, that doesn't mean you can't do anything about it. It was totally unfair that all the trees died and that the area where we had been living had become a major fire hazard but ... we knew we HAD to get out of there ASAP before the place went up in flames. We were broke, but with the second job and cutting back on spending we still managed to save enough money to get out of there. It can be done.
)
KMSRN
139 Posts
When you borrow money you sign a contract stating you will pay it back in a prescribed manner, for example $200 on the 1st of each month. If you don't pay it back as agreed, you are basically stealing from the lender, causing them to lose money on your account. If you have any doubt that you can repay your debt, don't do it.
If you have bad credit it means you haven't paid your debt as agreed. There are good reasons for having bad credit but this is rare. You can name all the exceptions you like (your brother-in-law who had a sudden devastating illness and lost everything and now his children have to beg on the street) that doesn't change the fact that most people with bad credit got that way through bad choices. I believe most people that have bad credit are in that position because they have made poor financial choices. And people who make poor choices in one area of their life, make poor choices in other areas. Like it or not, we are all in the situations we are in because of the choices we make.
If for some reason you do have a run of bad luck and bad credit, fix it as soon as possible. A lot of people get into trouble because they panic and stick their head in the sand and ignore the situation - that makes it much worse.
Having bad credit is not a reason, in itself, to deny credit anymore than good credit, in itself, is a reason to hire someone. But in general, you credit score speaks to your competence and character.