Ask MetaFilter questions tagged with creditcheck

Will My Dept Sink Me With A Prospective Employer?

Anonymous — Tue, 24 Nov 2009 08:46:00 -0800

Will a prospective employer not hire me when they find out I'm repaying money to the IRS? I'm in the running for a job I very much want, and in the course of my research on the company discovered that they run routine credit and background checks on prospective employees.

I have minimal outstanding credit card debt and no collection agency reports on outstanding bills. My concern is this: although I've filed my taxes every year, due to a drop in my income, I didn't have enough money to pay what I owed for tax year 2008.

Since I'm currently a freelancer, it was a substantial amount ($4000). I worked out a payment plan with the IRS immediately, and the debt is being deducted bit by bit from my bank account every month, but I assume that it will show up on a credit check.

However, I don't want to give any reason for my prospective employers to not hire me. Would this give them pause? Should I try to find a way to clear the debt immediately, say, by asking a family member for a loan to pay the IRS?

I also would appreciate any information on when these checks are usually conducted. For example, are they conducted during the interview process, or after they make a tentative offer subject to the results of these checks? I haven't signed any authorizations to make these checks, but I'm not sure if they need my permission to do them.

Thanks for your help.

Credit check for depositors?

NortonDC — Wed, 12 Aug 2009 21:17:27 -0800

I'm a depositor, and only a depositor, at a bank. What legitimate purpose is there for the bank to run a credit check on me? I'm an established customer at a bank I'm happy with, but now on a form used in processing a name change they are requiring that I give them permission to run credit checks, employment verification, etc.

They are not and never have been a creditor to me. I have never had or sought any type of loan from them, including credit cards. In fact, it's the opposite, since I am a depositor.

I give money to them, not the other way around. So how could it be appropriate for them to run credit checks on me?

How do credit checks/histories work in the UK?

metaBugs — Mon, 20 Oct 2008 07:01:51 -0800

UK Credit Reports / Histories: I've seen loads of posts referring to the USA system of credit scores, credit histories, etc. but never seen anyone refer to an equivalent UK system. Presumably we have one, but how does it work? So far in my life I've been lucky, and never taken a bank loan or had a credit card. This is great, but means I have no clue how the system works and I'm about to leave student life for the real world.

In my bank the other day, the manager tried to persuade me to sign up for a credit card (which I later found she gets commission for) and mentioned that it's useful to "build up credit". I assume she's talking about building up my credit rating so I can get loans more easily in the future, which I thought was just a US thing. Most importantly, I'm reluctant to take advice from someone who's getting paid to sell a credit card to me. I'd much rather ask... um... a bunch of strangers on the internet. Hmmm.

So:
Do I, having lived my whole life in the UK and never used credit, have a credit "score" like I've read about for the USA? If so, how do I find out what it is?

Is having a credit card and not using it (I'm terrified of spending money I don't have) really better for me than not having a credit card AND not having and debts?

Why, when performing credit checks, do companies always check my current and past addresses? I've been told that putting a student hall as my address will automatically get my phone contract refused so I put my parents' address and got through. Given that I haven't lived anywhere for longer than a year for nearly seven years now, why is my address more important than my name and bank account?

BP: Pre-Employment Credit Check?

Anonymous — Mon, 16 Jun 2008 12:53:15 -0800

Does BP conduct a pre-employment credit check? I've got a good shot at a technical job at a BP (British Petroleum) refinery in the US. Problem is, my credit is horrible. I wouldn't be handling anything financial in this position.

I know a number of companies do this for all applicants. Is BP one of them?

which is worse?

Kellydamnit — Sat, 21 Jul 2007 10:08:47 -0800

Asking for a friend: what's worse on a credit check- unpaid debt or recent bankruptcy? A friend of mine is in the process of filing bankruptcy due to some oppressive credit card debt from high school, a long stretch of unemployment, and some personal issues. He's currently employed, but wants to look elsewhere.

He's wondering if it would be better to apply now, and deal with a credit check with bad debt, or wait until the bankruptcy is done and have that on his record.

So, anyone who does hiring and looks at such things, which would put you off more?

For the record, he's gainfully employed at a start-up, has been promoted twice within the year, but has basically reached as far as he can at the current company short of upper management.

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

khites — Fri, 28 Jul 2006 02:49:45 -0800

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!

Where to get a credit check?

jmd82 — Wed, 10 Mar 2004 22:50:57 -0800

I'm starting to get paranoid about my credit history for some reason (probably because I just applied for a Visa Platinum card for the helluvit), so I googled up "Credit Check" and was bombarded with what seemed endless websites offering to give me a free credit check. I don't want to accidently be scammed or anything, so anybody have recommendations on legit places to get a credit check? (free is preferred, but I know thats not always the case)