i'm gonna fail a credit check...!

July 28, 2006 2:49 AM

New Job. Credit Check. Got the fear... (UK)

I've just landed a new job - they headhunted me, and after a bit of negotiation about package & responsibilities, I've accepted the verbal offer.

Because I'm on a 3 month notice period here & they wanted me asap, I've handed in the memo here saying I'm leaving. Its a huge opportunity for me, big change in direction etc etc - I'm extremely excited by the role....

Yesterday, the headhunter talked me through the next steps - routine application form to be filled in for the files, call up my references, background check, criminal file check, credit check...

Problem is, 5 years ago I had a major credit issue which took 3 years to resolve - not quite bankrupt, but certainly a compromise agreement with creditors. I'm only just getting over this - managed to get through it, now have a mortgage with a sub-prime lender, still can't get normal credit so it's clearly still sitting there like a monstrous carbuncle on my credit history.

The new employer are entitled to do this; they are an Financial Services Authority regulated business and as part of this they have procedures to make sure that people in certain roles are "fit and proper" and the FSA rules say credit checks are part of this assessment. I read the FSA handbook last night & it specifically draws attention to the "financial soundness" of the person....

So I now have the fear that my credit history will lead them to withdraw the offer, but I've already handed my notice in here and made it clear that I want & need a change in direction.

Does anyone have any clues as to how clean your credit has to be to get a job with a bank? Or failing that, any strategies for dealing with the rejection when my new employers turn round & say "you're not fit & proper - go away? " What do i do? Come crawling back to my current job, when I've told them that I need a change in direction & a new challenge? And that would mean telling them about my embarrassing credit history....

At the moment, my plan is to be open & honest, declare everything with mitigating circumstances in a cover letter and wait & see how it goes. But I have to say, I'm now crapping myself!

posted by khites to work & money (9 comments total)

A friend had a similar situation, and similarly had the fear. I can't comment on details, but do know he has now been in the job doing database stuff for a major UK bank for over a year. Hope this is somewhat reassuring.
posted by handee at 2:55 AM on July 28, 2006

I'm sure they'll take into account that it whatever it was happened 5 years ago, that you've sorted (or on the way to sorting it), and you're now a homeowner.
posted by derbs at 3:31 AM on July 28, 2006

I think your proactive approach is the best, and, working in the same industry, I wouldn't expect it to be a problem, especially since you're working through it and are being open about it. Everyone has problems, and if nothing else, this is just a testament to your experience in complicated financial situations!
posted by ukdanae at 3:33 AM on July 28, 2006

I think your approach is correct. Be open & honest, explain the situation as well as you can, emphasize that this situation is in the past and that it never impaired your ability to be truly "fit & proper". Don't go into specific details about the situation unless pressed, don't make excuses. Don't make a big deal out of it. This is a facet of your personal life they are checking into, and as such has very little bearing on your profesional life. As long as your credit history after the fact does not disagree with this, I doubt that one previous personal financial mishap, even a large one, will lose you the job. They just want to know.
posted by sophist at 3:37 AM on July 28, 2006

You should be fine. There's actually not so much they can do as you might think. Really they're checking if you're currently bankrupt or whether you've done a runner and completely buried your head in the sand over finances. Everyone makes mistakes and 99% of the population has debts of one kind or another.. really they want to make sure you're 'sound' when it comes to handling finances (even if they're low) rather than whether you've actually had problems or not.
posted by wackybrit at 4:27 AM on July 28, 2006

It may not be the same in the UK as it is here in the US, but... back when I, too, had crap credit, I experienced the same thing with the same fear. I was sure it would go badly.

I was able to go to someone I knew working for HR in a very large financial services company and ask what was likely to happen. He reassured me that they're mainly looking for certain flags that might indicate there is some reason to believe your financial situation could impact your job performance. So, if you currently have a lot of liens and/or judgements--that's a flag because you might be tempted to take bribes or steal from the company. If your financial situation is currently stable you're probably fine. They really don't care what your past relationship with Visa and MasterCard has been.

Oh, and I had no trouble at all with that first background/credit check. Now it's routine for me, along with drug tests, as all my clients are either banks or pharmaceutical companies.
posted by idest at 4:38 AM on July 28, 2006

They're looking for things that show you'll steal from them. They're checking for fraud, and they're checking for huge unmanagable debts.
posted by bonaldi at 5:52 AM on July 28, 2006

The two things they're looking at your report for is (1) any indication your current situation is unsound and might contribute to you stealing from them and (2) a history that would lead them to believe that you're unreliable or have poor judgment. Which is a bigger deal for them is something only they know.
posted by phearlez at 9:57 AM on July 28, 2006

Just in case anyone ever comes by this way with a similar query, it took a while but I got the unconditional job offer with no one raising any questions....

Thanks everyone for the reassuring / supportive comments which helped to diffuse my paranioa!
posted by khites at 6:14 AM on October 5, 2006