Empoyers Who Request Credit Reports!!!

[Euskadi1946]

I've been an unemployed RN since June, 2003 and have been doing agency work which is very sporadic here in Salt Lake City. I have been to so many job interviews that I have lost count and always I get the same response from the employers. I have excellect qualifications but we hired another candidate who was more qualified. I went to an interview workshop and the lecturer told me that I was doing all the right things on an interview. I recently found out that here in Utah, many employers do credit checks on prospective employees. An attorney friend told me that pulling a credit report is included in the background check and if you sign a release form authorizing a background check, chances are, they will pull a credit report too. He also told me that employers can deny you employment if your credit is less than perfect and since my credit is less than perfect, I'm beginning to wonder if that is why I have been unable to find a job. I think this is absolutely appalling and underhanded of prospective employers. How do you pay your bills if you are not working??? I also understand that very few states allow this practice and unfortunately, I live in a state that does. Would love to hear some comments about this nasty little practice!!!!!!!!

[Altra, BSN, RN]

Originally posted by Brownms46

Sorry I disagree with your husband, and have talked with several different financial advisors who say that, you shouldn't have your credit checked unless it necessary! Too many inquires is NOT a good thing!

From his training manual from the major bank group he deals with most often ...

"... Inquiries to an applicant's credit file from credit-granting entities (i.e., banks, loan originators, revolving credit card issuers, retail stores, etc.) are coded differently than inquiries made on behalf of an applicant for housing, employment or other reasons."

In practice, >4 inquiries in 30 days from credit-granting entities is what lowers your FICO score. 10 or more inquiries in 60 days will probably disqualify you from a loan if your payment history is anything less than spotless. The point I was trying to make is that the FICO score is used by financial/loan industries as a mathematical, statistical assessment of loan risk - it is irrelevant in terms of employment, and not what a potential employer is after if they choose to check credit as part of the employment screening process.

So yes, unnecessary credit checks by credit-granting financial entities are to be avoided - such as not applying for credit cards recklessly. But multiple credit checks from employers will not affect your FICO score or the appearance of your credit report to other employers.

The suggestion that several posters made to check your own credit report annually for inaccuaracies is an excellent one.

I was not thinking specifically of travellers when I commented on a credit report being viewed as a measure of stability -- if you have been a traveller and are now seeking additional/new employment, that would be obvious to the employer where you are applying from your resume, application and interview.

Leigh

[bagladyrn, RN]

I have a very simple take on this: If an employer insists on a credit check as a condition of employment, I don't choose to work for them. This comes up frequently as a traveler. My company knows that I don't allow it, so when a contract includes this, I mark out credit check, write "Credit Check Not Authorized" with my signature, and have included a separate letter explaining that I refuse this as not relevant. If a hospital refuses to accept this, so be it! Right now, it's our market with the nursing shortage. I've not lacked for a job - had a new contract lined up before finishing each one, even with this stipulation.

[dphrn]

MLOS,

Very good information. Thanks.

[Havin' A Party!, ASN, RN]

Hello again folks. Just back from watching the Eagles lose a game they should've won.

Couple of points. Absolutely agree that there's no correlation between someone's credit report and their technical abilities as a nurse. The companies that undertake the practice we're discussing aren't solely interested in buying our technical expertise. That's just one of many criteria they're evaluating us on. To them being a trusted, valuable, responsible representative and key member of their team is broader than our clinical know-how. It's their prerogative to employ whatever statistics they wish to use (so long as it's legal), and it's our's to bless the pulling of the report or not.

Also, the notion that what we're talking about here somehow has a nexus to "the nursing shortage" is just way way too over the top, IMHO.

Agree totally that factual entries on a credit report are rarely removed... even when paid in full. From my experience, very few companies do that. OTOH, if it can be demo'd that an entry's in error, they'll try to correct it promptly. (For a variety of non-germane reasons, that can turn out to take more time than expected.) For these reasons, the hiring of an attorney, strictly for the above purpose, may be an unnecessary -- and probably non-trivial -- added expense.

Additionally, most companies that pull reports require the applicant's sign-off beforehand. It'd be a federal violation to do so without the prior consent.

Lastly, a short note to Ce:

If you feel you have a right to be upset with your present circumstances, then I'd only second your emotion. My only wonder is why you've consciously chosen to direct your frustration at moi. If you care to, perhaps you could explain that in a PM when you get a moment. And you need not feel you have to do that tonight. Please take care!

[Brownms46]

Originally posted by bagladyrn

I have a very simple take on this: If an employer insists on a credit check as a condition of employment, I don't choose to work for them. This comes up frequently as a traveler. My company knows that I don't allow it, so when a contract includes this, I mark out credit check, write "Credit Check Not Authorized" with my signature, and have included a separate letter explaining that I refuse this as not relevant. If a hospital refuses to accept this, so be it! Right now, it's our market with the nursing shortage. I've not lacked for a job - had a new contract lined up before finishing each one, even with this stipulation.

Totally agree with ya:)!

[Brownms46]

Originally posted by MLOS

From his training manual from the major bank group he deals with most often ...

"... Inquiries to an applicant's credit file from credit-granting entities (i.e., banks, loan originators, revolving credit card issuers, retail stores, etc.) are coded differently than inquiries made on behalf of an applicant for housing, employment or other reasons."

In practice, >4 inquiries in 30 days from credit-granting entities is what lowers your FICO score. 10 or more inquiries in 60 days will probably disqualify you from a loan if your payment history is anything less than spotless. The point I was trying to make is that the FICO score is used by financial/loan industries as a mathematical, statistical assessment of loan risk - it is irrelevant in terms of employment, and not what a potential employer is after if they choose to check credit as part of the employment screening process.

So yes, unnecessary credit checks by credit-granting financial entities are to be avoided - such as not applying for credit cards recklessly. But multiple credit checks from employers will not affect your FICO score or the appearance of your credit report to other employers.

The suggestion that several posters made to check your own credit report annually for inaccuaracies is an excellent one.

I was not thinking specifically of travellers when I commented on a credit report being viewed as a measure of stability -- if you have been a traveller and are now seeking additional/new employment, that would be obvious to the employer where you are applying from your resume, application and interview.

Leigh

Ok I have checked and your husband is correct! An employer check of your credit is considered a soft inquiry, and does NOT affect your score, and it is given a special coding. My error, I was wrong on this.

But I also found out, that if an employer doesn't hire you becuase of your credit report, the employer must provide you with instructions on how to dispute inaccurate information in your credit report.

But no matter, which way it is or isn't...I strongly feel, NO employer has any business looking at my report. I like BagladyRN, and many others, haven't had a problem with telling them no. If and when I ever do run into an employer who has a problem with it, I will still continue feeling the same as I do now.

[Sheri257]

Originally posted by Brownms46

I once forgot to make a credit card payment, and I called the company, and told them I had just forgot! I have about 6 credit cards, and I pay them all online, waay before they are due, and waaaay more than the monthly amt. They didn't charge me a late fee, and said not to worry!

That's the smartest thing to do: Take care of the problem before it even has a chance to show up on your credit report.

[angellavg]

i recently was going to apply for a job until i saw the credit report section. i just don't understand how they think that your credit report lets them know what kind of employee you will be. i didn't apply because my credit sucks. i would've really liked to work at this place, but if they go by my credit report, i won't get the job so why waste my time.

[Town & Country]

My credit standing is not an employer's business.

Neither is the last time I farted, told a lie, or any number of things.

Take your request for my credit report and SHOVE IT!

[Sheri257]

Here are some links that might be of interest:

Federal Trade Commission guidelines on what employers can and cannot do with credit reports, including procedures for denying promotions based on credit.

http://www.ftc.gov/bcp/conline/pubs/buspubs/credempl.htm

A couple of websites talking about why employers check credit:

"Employers say they run credit reports to find debt-heavy individuals who they fear will underperform because of financial stress or steal. They also claim to find hints of character flaws, poor judgment or inadequate management skills."

http://www.sunfeatures.com/11-24-02.html

"Employers also need to determine the accuracy and completeness of a job application. Credit reports for employment pre-screening are especially good for this, because, typically, they show former addresses and former employment.

Discrepancies between the credit report and a job application, while not always an indication of omissions or untruthfulness, are always worth checking out by a responsible employer."

http://firstcreditbureau.com/employer.htm

[mattsmom81]

Originally posted by bagladyrn

I have a very simple take on this: If an employer insists on a credit check as a condition of employment, I don't choose to work for them. This comes up frequently as a traveler. My company knows that I don't allow it, so when a contract includes this, I mark out credit check, write "Credit Check Not Authorized" with my signature, and have included a separate letter explaining that I refuse this as not relevant. If a hospital refuses to accept this, so be it! Right now, it's our market with the nursing shortage. I've not lacked for a job - had a new contract lined up before finishing each one, even with this stipulation.

Thanks Baglady, this is good to know. I have a 'black mark' on my Group One 'consumer credit report' that comes up every job application. In my area... if we refuse the credit check on application we don't get called back. Hard to prove but they just don't call us. Good to know travel agencies policies in regards to this issue. This may be something I look at in the future, cuz I do get SOOOO tired of discussing this one incident with every job interview....even though it was almost 10 yrs ago. It's like

chinese water torture...LOL! :roll

[Sheri257]

Originally posted by mattsmom81

This may be something I look at in the future, cuz I do get SOOOO tired of discussing this one incident with every job interview....even though it was almost 10 yrs ago. It's like

chinese water torture...LOL! :roll

Just FYI, most items that are seven years or older should be off your credit report by now.

One exception is bankruptcies, which are removed after ten years.

If the item is ten years old, you should have a good chance of getting it removed.