Being denied employment because of a credit check :(

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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 is that I have a bank account with a lot of savings..The way I manage money is that I dont pay off my creditors all at once..I just pay off the minimum amount every month and save money..It is like paying off a home where people have savings but they just dont pay off the home all at once..My credit rating is excellent..I am at 780..I pay 6% interest on my credit cards..

My potential employer thinks I making too little to support myself so I got denied the job....And also my potential employer does not know that I am living with my mom now and she lets me live there for free..

Now, this credit checking thing to get hired,is kind of bad, if they dont have the whole picture! :(

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Specializes in Cardiac/ED.

Your financial plan is so bad, I can't even bring myself to comment!

P2

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Specializes in Med/Surge, Psych, LTC, Home Health.

Yeah, I know that some employers are doing this. I guess that having bad credit says something about your character, or that's the theory. My credit is in the toilet and it makes life hard, but I suppose I deserve it.

I'm currently trying to get a new job and am hoping that the place where I am wanting to work doesn't do credit checks.

I also badly need a new car WITH air conditioning to drive my kids around in in this blasted heat. I'm praying in the next week or so we'll have one. Until then, we're mostly stuck in the house.

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When you purchase a car, and get a loan for a car, people still do have savings..They just dont pay off all of it..If a person buys a home, they still have savings.They dont use all their money to pay off the home..That is why people go for home and car loans..People have mortgages to pay that can total 500k...They still have savings...They dont use all their income on buying the home or car..

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Your financial plan is so bad, I can't even bring myself to comment!

P2

So you think people who get home loans, have no savings then? They live paycheck by paycheck to pay it off?

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Specializes in SICU.
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 is that I have a bank account with a lot of savings..The way I manage money is that I dont pay off my creditors all at once..I just pay off the minimum amount every month and save money..It is like paying off a home where people have savings but they just dont pay off the home all at once..My credit rating is excellent..I am at 780..I pay 6% interest on my credit cards..

My potential employer thinks I making too little to support myself so I got denied the job....And also my potential employer does not know that I am living with my mom now and she lets me live there for free..

Now, this credit checking thing to get hired,is kind of bad, if they dont have the whole picture! :(

First, please buy any book by Suze Orman and read it to learn how to improve your financial health. Your plan may make sense to you but there are better ways.

Second, what I don't understand is how your potential employer can deny you empoyment on the basis that you don't make enough to support yourself! What business is it of theirs? :angryfire Now you're not making ANYTHING!

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Specializes in Float.

780 is an EXCELLENT score..that is NOT bad credit.

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Specializes in Peds/Neo CCT,Flight, ER, Hem/Onc.
It is like paying off a home where people have savings but they just dont pay off the home all at once.. :(

The reason people don't pay off their mortgages is because they are TAX DEDUCTIBLE!!!!!!!! Credit cards and other loans are not. Your employer is doing what many others do. There is an opinion that how you manage your money reflects on how responsible you are. Right or wrong, it's done all the time...even auto insurance companies base your rate on your credit among other things. I would take this issue seriously and pay off some of your debts. This won't be the first potential employer who has a problem with your "plan".

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Whether we like it or not, it's legal for employers to do this and credit checks are a growing trend.

However, I've never heard of an employer not hiring someone for not potentially being able to pay their bills. Usually it's because someone hasn't actually paid their bills.

Afterall ... it's not unusual to have a lot of debt after graduating from school. One would hope they would understand that.

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Specializes in Med-Surg.

I'm sorry to hear what you're going through. A 780 score is really quite good and as long as there are no late payments I'm really not understanding what your potential employer is saying. Your debt to income ratio might be high but it's not like they are a lender. As long as you're making payments I don't understand their problem.

I think a financial plan that includes savings is a wise one. But I would also thinking about upping the payments beyond the minimum and whittling away at the debt because the money you're spending on interest over time is not money that is well spent. Definitely do not add to the debt.

To have no money in the bank living paycheck to paycheck is not a wise plan either. Balance it out some.

Good luck.

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Specializes in Med/Surg, Emergency.
The reason people don't pay off their mortgages is because they are TAX DEDUCTIBLE!!!!!!!!

So you send the mortgage company $10,000 so that you can save $3000 in taxes? That's still $7000 in the hole by my math.

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First, please buy any book by Suze Orman and read it to learn how to improve your financial health.

. . . or by Dave Ramsey.

And people do pay off their mortgages.

Keeping credit card debt while you have cash in the bank over an above a good emergency fund is just like borrowing (at 6%) to put that money in the bank to earn, like 1.5%. Would you do that?

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