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KimbaWolfNagihiko said:
Absolute madness! That must be illegal in the UK/EU -- I've never heard anything like it!
potential employers and credit checks
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Absolute madness! That must be illegal in the UK/EU -- I've never heard anything like it!
Maxx said:
More important than paying on time, is having available credit at your disposal. As example, maxing out a card but always paying the ballance can actually hurt your score. Conversely, always using but never exceeding 10% of your available limit will greatly help your score.
In fact, the quickest and easiest way to improve your credit score is to ask for a limit increase on any cards you have BUT never use that extra limit.
How much credit you have used in the past is a big one too. Going 20 years without a car loan will hurt you. On the other hand, lets say you have $5k for a used car. Put that money in a seperate bank account and get a loan to buy that car via that account. Now set up automatic payments to have it paid off in 6 months or a year. Your score will go way up once it's paid off, and it won't have costed you much or anything extea to do it (depending on interest).
As your score slowly increases, use that to increse your limits even more, and to get better loan interest rates later on too. Eventually you will find it becomes almost self sustaining with $10k(plus) limits on a platimum 6% apr credit cards (with rewards), and 0% interest 12 month loans.
Doing this (and always paying on time) has gotten me about an 815-820 credit score currently- yet it seems I hardly use my credit all that much any more. What's better still is the amazement I get from bosses, loan agencies and airlines alike. It's like having doors opened up for you all over the place and automatically being trusted more too.
In fact, my wife just got handed a company credit card for unlimited purchases. The resopnsibilty came with a pay raise and more job securty. Just because her boss looked at her credit score. So yeah, I'm all for that.
wetatnight
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my problem is that my debts from medical bills, credits cards etc exceed my income
MagicMeow
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a credit check is usually a good way to determine if someone is reliable.
since it costs employers money to hire and fire, it seems fair to be able to check on an individuals credit rating, especially for HIGH TURNOVER jobs, or jobs in which the employees dont particularly want to show up everyday or be reliable.
a thing to note is that not all employers take this step, and most employers are willing to talk about the issue if you bring it up to them before hand.
The thing that employers are honestly looking for is to see if you have been making payments on your debt, defaulting on your debt is what lowers your credit rating.
The logic of
I have debt ergo I cannot be employed is a fallacy.
The logic should read
I have Debt- I have not been making payments or in contact with those whom i owe the money too- I have a bad credit rating that reflects this- I am seen as dishonest/unreliable- I cannot be employed by this particular company..
This can be seen in the way that credit scores work, IT is impossible as far as I know to improve your credit score WITHOUT being in debt. Having debt, and making consistent regular payments, or being in contact with whoever the debt is owed too and working on the issue is reflected in credit reports, and is seen as a reliable trait.
"Hey I have debt, but I pay people back" = Wow, My credit rating is improving
One thing for those who had bad credit under the obama administration was what is called "debt forgiveness". IT was orignally intended to be for student loans, If the borrower was willing to pay back whatever amount they can afford each month for a period of 9 months after negotiating with the company in question, and then pay an amount equal to 35% of their debt either at the end or throughout the process, their debt was forgiven and removed from their credit reports.
since it costs employers money to hire and fire, it seems fair to be able to check on an individuals credit rating, especially for HIGH TURNOVER jobs, or jobs in which the employees dont particularly want to show up everyday or be reliable.
a thing to note is that not all employers take this step, and most employers are willing to talk about the issue if you bring it up to them before hand.
The thing that employers are honestly looking for is to see if you have been making payments on your debt, defaulting on your debt is what lowers your credit rating.
The logic of
I have debt ergo I cannot be employed is a fallacy.
The logic should read
I have Debt- I have not been making payments or in contact with those whom i owe the money too- I have a bad credit rating that reflects this- I am seen as dishonest/unreliable- I cannot be employed by this particular company..
This can be seen in the way that credit scores work, IT is impossible as far as I know to improve your credit score WITHOUT being in debt. Having debt, and making consistent regular payments, or being in contact with whoever the debt is owed too and working on the issue is reflected in credit reports, and is seen as a reliable trait.
"Hey I have debt, but I pay people back" = Wow, My credit rating is improving
One thing for those who had bad credit under the obama administration was what is called "debt forgiveness". IT was orignally intended to be for student loans, If the borrower was willing to pay back whatever amount they can afford each month for a period of 9 months after negotiating with the company in question, and then pay an amount equal to 35% of their debt either at the end or throughout the process, their debt was forgiven and removed from their credit reports.
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