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Showing Original Post only (View all)What you may not have known about Credit Checks and Credit Ratings. MUST KNOW AND SCREAM ABOUT [View all]
(I expect this thread to be closed hopefully it won't)
COLD HARD FACT: You are a slave to your credit rating!
I was responding to a thread about College students credit rating being checked and students loans not allowing them to get jobs.
http://www.democraticunderground.com/?com=view_post&forum=1002&pid=652125
IT should be illegal for employers to check a person's credit for a job. It does not bare ANY reflection on them as an employee and this is why it should be illegal.
The Credit rating system is the only system I know where it penalizes a person because some check there credit. So you apply for a job and they check your credit Your credit score does go down.
Now more and more companies and businesses are checking peoples credit. You start services with Water or Gas or EVEN getting cable they are require (in most states) a credit check. Each time that check is ran it does knock points off your credit score.
NOW here is something that should piss people off SAY you are an existing customer and you are moving to a new house or moving to a new area and you want to keep your cable company. I did customer service for a cable company on the national level one thing I did do was transfer services--So I am speaking for what the protocol was for this company. Keep in mind that when you have X cable company that is a nationally known company it is basically franchised out (Like Mc Donald's.) Do whoever owns the franchise in New York isn't the same person who owns it in Texas or California. So one Franchise might demand a credit check that another franchise never did with you. LATELY HOWEVER this company was demanding credit checks. Now if you are moving within the same city you may think oh won't need a credit check you are just moving 3 streets over. Some areas require that credit check to transfer your services. You may think OR I'll just say I'm new start services than close the other account. Again a credit check is required.
NO the company will not take into account the fact you had service with them before. IF you are moving from New York to California THEY will not look at your score from your old residence THEY want another check done. REMEMBER -- CREDIT CHECK SCORE GOES DOWN
My friend recently got divorce He had a score of 850 at the start of his divorce. By the time everything was said and done he had a score of 200. How did that happen?
-He had to find a new place to live--Credit Check done by place he wanted to live.
-He had to get utilities set up for new place Water, Gas, Electric, and cable ALL required credit checks even though he had existing service --New account new credit check.
-He had 2 credit card with both his name and his ex's name. Credit Card companies (Worked for customer service for 1 company) Won't just close out the account --IT lowers your credit rating. So anytime you close a credit card it lowers your score.
-THAN he wanted cards to replace them. New Cards NEW account each card required a separate application (even though both card are Capital One card.) required a credit check so that is 2 more times his credit was check and lowered.
(This next set of events take place 3 months later)
So my friend is an IT/Computer programmer. He works for a company that is basically outsourced to other companies. So if a company doesn't have the money or doesn't want their own IT guys they hire my friend's company. My friend has his own set of "clients" He has served them well gotten 5 star reviews He basically is the one who trains other people working in this company. He is the best of the BEST --AT LEAST he thought that was how his company viewed him. The company got a new client and this new client required the WHOLE company employees be drug tested and credit checks ran. NOW even though my friend was not going to work for this company--different division company was handling their account--everyone had too to go thru the drug test and credit check. He goes thru the process then a few days later he gets called into the supervisor's office. Drug test came out fine BUT his credit score had a problem forcing them to put this employee of 15 years on a two month probation. The supervisor first ask how his life was going. Supervisor knew of the divorce and asked questions on his mental state and the like than he asked IF my friend had a gambling problem.
My friend couldn't understand the reason for the questions or the probation period. My friend was told that the credit check was 200 and that he recently took at lot of vacation time so they need to see if he is going to continue to perform at his normal level or if there is an issue they will have to reevaluate his standing in the company.
My friend e-mailed me today he is off the probation period and will not be getting any new clients because ALL the clients now have access to personnel files of those IT/programmers coming into their companies.
ALSO credit ratings can be wrecked by identity thief.
My husband when we first got married messed up my credit rating. I came into the marriage with my own car my mom co-signed for me. The financing company first demanded that I give them a copy of my marriage license in order to change my name or recognize my married name BUT my husband sent in the payment with my account number on the check that was accepted and processed.
Hubby said he's take care of that payment every month. He worked nights I worked days and my day would start at 5:30 a.m. getting up and ready for work than on the road. I would get home about 8:30 /9:00 at night. After a couple months of bills not getting paid on time and not having money for the weekend (both had credit unions that at the time didn't have MAC cards) we needed a system of some sort. Hubby would pay the bills and I did the grocery shopping (I had weekends off) and clean the house.
So I would see a stake of bill getting paid on time and we didn't any pass due bills and the like. So I thought everything was fine. My car got REPOed. It was the one bill hubby would forget about each month. That repo not only put a bad mark on my credit rating but on my mother's credit rating since she co-signed. eight years later she still can't get a car loan.
So much is now dependent on your credit rating and so much effects a person's credit rating that Bankers and companies basically have people in an never ending cycle and some trapped in a hopeless situation.
A credit rating isn't going to determine how well a person will do a job. It doesn't do anything but effect someone negatively and it should be illegal.