Student loans almost cost me a job opportunity

[HideoKojima]

Wait, they can stop you from getting a job by having bad credit? How are you suppose to pay for stuff and get your credit in check if you don't have a job?

 

[hayesc0]

Wait, they can stop you from getting a job by having bad credit? How are you suppose to pay for stuff and get your credit in check if you don't have a job?

Its conservative logic lol it makes zero sense.

 

[Hijo de luna]

Now, this my friends is real discrimination. Like, lawsuit worthy discrimination.

That's what I was thinking but I believe it's perfectly legal, unfortunately.
http://money.cnn.com/2013/03/04/pf/employer-credit-checks/

 

[Hijo de luna]

http://money.cnn.com/2013/03/04/pf/employer-credit-checks/

Employer credit checks keep jobless out of workforce
By Blake Ellis @blakeellis3
One in ten people have been denied jobs due to employer credit checks, a new survey from Demos finds.

"These factors reflect the poor economy and personal misfortune and have little relationship with how well a job applicant would perform at work," the report states.

Minorities are also disproportionately impacted by employer credit checks, Demos found. On average, African-American and Latino households have worse credit scores than white households.

Demos said thiscan be partly attributed to higher unemployment in these communities. Unemployment among African-Americans stood at 14% at the end of 2012, while the Hispanic unemployment rate stood at nearly 10% -- much higher than the 6% rate for white Americans, according to the Economic Policy Institute.

Other respondents in Demos' survey cited errors on their credit reports as hurting their credit.An FTC study recently reported that one in five consumers has a credit report error.

And because employers aren't able to view credit scores -- just the information contained in a report like debts, payment history and bankruptcies -- their evaluation of an applicant's creditworthiness is completely subjective, said Traub.

Many employers use credit checks to help prevent theft and embezzlement and to avoid legal repercussions from "negligent hiring," according to a 2012 survey by the Society for Human Resources Management. They are also used to screen applicants for positions that carry financial responsibilities.

But most employers who use credit checks say it's not the most important factor in hiring decisions. About 34% of employers use credit checks on some job applicants and 13% conduct credit checks on all applicants, according to the SHRM's survey. Only 14% cite a credit check as the most important factor in a hiring decision, compared to 87% who said previous work experience is most important.

Under current regulations, employers aren't allowed to run credit checks without an applicant's permission, and they are also required to notify applicants if they decide not to hire them due to the results. The applicant is then given a window of time to start disputing any incorrect information on their credit report before the employer can take adverse action.

To prevent credit checks from unfairly barring applicants from jobs, Demos recommended that the Consumer Financial Protection Bureau and other federal agencies require credit reporting agencies to remove medical debt from credit reports, as well as any disputed information until it is resolved. They also proposed making the process of disputing errors easier for consumers.

Meanwhile, Tennessee Democratic Representative Steve Cohen is sponsoring the Equal Employment for All Act, which would prohibit most employers from using credit checks in hiring or firing decisions.

"When employers use credit checks, finding a job can almost be impossible," said Cohen. "This is a growing trend and a dangerous one."

 

[newworldafro]

Almost


Accepted the offer about three weeks ago but the screening results were taking longer than I anticipated. The hiring manager told be that my drug and background check came back clear but the HR mgr wanted to ask some q's about my credit report. The position is a Financial Analyst gig so I knew they were going to go through my background with a fine tooth comb. Any way guy calls me today for a conference call and we went line by line through my credit report. He said he was little concerned with the balance of my outstanding student loans. I wanted to tell him it's because I didn't have the luxury of generational wealth derived from 400 years of free labor but... I'll play the game until I can build my own empire. He even asked about a loan payment that was 6 days late four years ago. I honestly don't think any of my white coworkers have student loans. That privilege. But anyway the guy approved me but I just thought about how this is just another example of how the system is rigged against us. Build your own my brothers, is hard outchea

Yeah.

http://money.cnn.com/2013/03/04/pf/employer-credit-checks/

"But most employers who use credit checks say it's not the most important factor in hiring decisions. About 34% of employers use credit checks on some job applicants and 13% conduct credit checks on all applicants, according to the SHRM's survey. Only 14% cite a credit check as the most important factor in a hiring decision, compared to 87% who said previous work experience is most important.

Under current regulations, employers aren't allowed to run credit checks without an applicant's permission, and they are also required to notify applicants if they decide not to hire them due to the results. The applicant is then given a window of time to start disputing any incorrect information on their credit report before the employer can take adverse action.

To prevent credit checks from unfairly barring applicants from jobs, Demos recommended that the Consumer Financial Protection Bureau and other federal agencies require credit reporting agencies to remove medical debt from credit reports, as well as any disputed information until it is resolved. They also proposed making the process of disputing errors easier for consumers.

Meanwhile, Tennessee Democratic Representative Steve Cohen is sponsoring the Equal Employment for All Act, which would prohibit most employers from using credit checks in hiring or firing decisions.

"When employers use credit checks, finding a job can almost be impossible," said Cohen. "This is a growing trend and a dangerous one." "

 

[O.iatlhawksfan]

I'm going to school to become a financial analyst too. I have some collections in my credit report bc I let people get service in my name and they didn't pay their bills one it 265 and the other is 165 I think..,


I always thought I could just get a credit repair to get it off, but I'm starting to hear it harder than that. What's yall suggestion?

 

[Hijo de luna]

I'm going to school to become a financial analyst too. I have some collections in my credit report bc I let people get service in my name and they didn't pay their bills one it 265 and the other is 165 I think..,


I always thought I could just get a credit repair to get it off, but I'm starting to hear it harder than that. What's yall suggestion?

Just go ahead and pay them off. Most ppl are only concerned with what's currently outstanding. You can always make up a bs story about how the charges were incorrect and you tried to dispute them but they ended up on your report anyway or a relative used your information without your permission. Pay everything on time going forward and you shouldn't have anything to worry about.

 

[Wild self]

Sad that these bans are scamming people left and right. And fukk these higher institutions for overcharging the populace.

 

[Sad Bunny]

H

Now, this my friends is real discrimination. Like, lawsuit worthy discrimination.

How so?
.
I thought a lot of jobs were doing credit checks now

 

[Scoop]

Student Loans really need to be reformed. I'm pretty fiscally conservative but charging kids 6% to go to school is insane.

I'm starting law school in a couple months which will probably cost me ~$80,000 in debt (would be much higher but in-state FL tuition is super affordable relatively speaking). So far I've managed to accumulate only about $6K in debt but it hasn't been easy.

Good first post OP and glad it worked out for you.

 

[Richard Wright]

I'm glad it worked out for you, man. Ironically not taking out loans to dorm is my biggest college regret.

 

[Serious]

I'm glad it worked out for you, man. Ironically not taking out loans to dorm is my biggest college regret.

Why?

 

[Richard Wright]

Why?

I'll keep it 1000. I didn't make a single friend in college. Got really close to some people I already knew, dated a bit, and lost some friends.

But I didn't make any positive connections with new people and it's had a negative impact on the way I see people.

 

[88m3]

Surprised people are surprised by this on the coli nonetheless the home of the six certs, six whips, six cribs on six continents crew.


Congrats, op. don't let struggle get ya down.

 

[88m3]

I'm glad it worked out for you, man. Ironically not taking out loans to dorm is my biggest college regret.

On the bright side though you didn't knock anyone up...