Credit/Background Checks

[CCsAreEvil]

I say that within a few-10 years, there will be a law made that you cannot discriminate based on race, religion, age, sexual orientation or CREDIT! Seriously...It is coming. Pretty soon, the credit challenged will be a protected class of people. Mark my words

This would be nice.. however, just like anything, they may still not hire you mainly because of let's say.. a BK on your record.. but they'll find another reason to not hire you. Same goes for what happens today regarding age, race, sexual orientation, etc.

[helpme2010]

I am getting close to experiencing the same situation with interviews and bk on my record. In fact, this was the core issue that delayed my bk for so long, the fear that the credit check would kill me.

I earned my degree during the recession (went back to school full time) so I am going to explain this during the credit check time frame. I expect to be interviewing with much larger sized corporations now that I have my degree, so I expect many more will be issuing credit checks. I have had a couple credit checks and several background checks done before, so I am not looking forward to this obstacle.

[helpme2010]

dspii: that's terrific news! congrats on the new job! I like how you handled it.

Now I'll ask for your advice: My company is merging with another (smaller) company, the president is leaving, and someone new will be coming in. Technically, my job is ending, but I hope to continue to work at this place (under whatever name it gets) doing the same job (the merge is not changing the nature of the business, they'll still need people doing what I do). I'm acquainted with the person who will be coming in, and would expect to be kept on. However, no one knows of my bankruptcy (I filed after I started working at this company). In all probability there will not be new background checks for those of us currently employed. I don't plan to say anything about my past financial situation unless specifically asked. My company is often in the news, the departing and incoming presidents are well-known in the community.

Does my plan of not volunteering anything sound reasonable (or am I trying to justify the fact that I'm embarrassed and don't want to discuss my personal issues). I'm hoping it never comes up (but will be ready with something short to say if it does). Do you think that the fact you brought up the "blemish" made any difference (other than making you feel relieved when HR said it would not be a problem)?

I'm really happy the job worked out for you!
meateater

meateater, you mention above that you believe your job is ending with the merger, but then say you expect to be kept on. I have been through 2 mergers and both times, they pretty much liquidated most personnel within a year (usually around a year later, they would remove everyone from the company). I wouldn't be worry about your bk, I would be worried that you have a good chance of losing your job because of the merger.

I was the only person in my department and the only one that knew how to do the job at both companies, but they still removed me. I see mergers as a way for a company to absorb the client base and resources of the other company, but then fire everyone as a way to get these clients and resources without having to keep the employees. This is a sad way the modern economy is functioning.

Anytime I work for a company and they mention a merger or we are being bought, I would immediately get my resume out there and start interviewing. You will get no notice of your termination and it may take many months after to find a job, so why not be proactive rather than reactive.

[BarkingCat]

I work for a small software company that's in the process of being acquired by a Fortune 500 company. All of us in R&D were assured that we'd automatically be receiving offers from the new company. Just came from the initial presentation from their HR folks, who cheerfully informed us that all offers were, of course, contingent on background checks. I haven't filed yet -- won't until next month -- but I'm freaking out a bit about that big IRS lien. (It's bad enough to get pulled out of the running for a job because of financial issues, but to essentially get fired for them...)

Anyhow, I did not have the guts to raise my hand and ask, but I leaned over to my boss and whispered, "Exactly what kind of background check?" She immediately stood up and asked. The HR woman giving the presentation had no idea, but was "pretty sure" it was only a criminal check. Boss, in that fabulous English accent: "Oh, I see. [pause] Convictions only or arrests, too?"

At least the laughing kept me from crying...

[drowning123]

@BarkingCat. What has your boss been up to? LOL.

[helpme2010]

Barkingcat, I still warn you that even when your boss (even the CEO) and the new company tells you that your jobs will be safe and that you are all the reason why they bought your company, don't swallow the coolaide!

I worked for two software companies, we merged with a larger company with one and were purchased in the other company. Both companies told us our jobs were safe and in fact the new company would invest in us, so we would get more resources. Both times, the new company worked our butts off helping the merger or acquisition go through. We had to adapt to the new accounting and ways of doing business. Both companies began terminating people about a year later. No warnings at all, they started off with small terminations, then increased.

Both companies executives told me straight to my face that my job was safe and not to worry. Boom, terminations occurred!

Be on your guard!

[BarkingCat]

helpme2010: Yup. Been in this business for 20+ years; certainly long enough to be wary of any acquisition.

Interesting follow-up to the background check question: TONS of people have been coming up to my boss, thanking her for asking the question they were all too afraid to ask. They're ALL worried about credit / financial checks. So as many posters in this thread have pointed out, we think we're the only "blemished" ones, but we're probably not. Honest, to the point, and only when asked is the best policy.

[backtoschool]

Although credit checks are now a routine part of most background checks, I would not worry about the results. I just accepted a new position this week in financial services, earning considerably more than I was making at my old position, and they did a background check. I let them know that I had a bankruptcy on my report up front and there was no issue at all. So many people have financial blemishes on their credit reports now that bankruptcy is not the stigma it once was. The HR person doing the background check told me that they were mostly looking for criminal stuff. It is a matter of personal preference as to what to disclose up front, but I felt better just getting it out in the open before the background check happened. As with anything ymmv.

[BarkingCat]

Cool. Thanks, backtoschool -- and congrats on the new job!

I do know that in this case, no "humans" are involved so there's really nobody to tell up front. You click a link to a hosted service, fill out your information, and off it goes.

[dspii]

Congrats backtoschool.......most times, in this day and age, our credit blemishes can be explained and overcome. Like you said, it is best to reveal your blemish when the opportunity arises...albeit don't blurt it out too soon if it can be avoided. I waited until I got the offer of employment, called the VP, verbally accepted and asked is a blemish would be a challenge for the company.....fortunately it wasn't and here I sit in Reno at my new job. I fear many people disqualify themselves from contention once they hear background check or maybe reveal their blemish too soon in the interview process. Make them love you and prove that you can exceed the requirements of the job.....then how could they say no? Albeit there are some extreme corporate policies, but if they love you they can be overcomes as well.

[backtoschool]

Congrats backtoschool.......most times, in this day and age, our credit blemishes can be explained and overcome. Like you said, it is best to reveal your blemish when the opportunity arises...albeit don't blurt it out too soon if it can be avoided. I waited until I got the offer of employment, called the VP, verbally accepted and asked is a blemish would be a challenge for the company.....fortunately it wasn't and here I sit in Reno at my new job. I fear many people disqualify themselves from contention once they hear background check or maybe reveal their blemish too soon in the interview process. Make them love you and prove that you can exceed the requirements of the job.....then how could they say no? Albeit there are some extreme corporate policies, but if they love you they can be overcomes as well.

I totally agree dspii . I told them of my bankruptcy after I had received a written offer and right before I authorized the background check. Credit checks are the norm for the type of work I do, so I knew that I would have to disclose the information if I received an offer. Unless you have check writing abilities in your job, or you manage large sums of money or are in a position to be bribed, a bankruptcy on a credit report is not really going to be a deal breaker in my experience.

[Fallonedward]

BTS, thanks for sharing that info. Hubby is in early stages with two companies and we are trying to figure out at what point we tell them about our BK? Can you share at what stage you told HR? thanks

Although credit checks are now a routine part of most background checks, I would not worry about the results. I just accepted a new position this week in financial services, earning considerably more than I was making at my old position, and they did a background check. I let them know that I had a bankruptcy on my report up front and there was no issue at all. So many people have financial blemishes on their credit reports now that bankruptcy is not the stigma it once was. The HR person doing the background check told me that they were mostly looking for criminal stuff. It is a matter of personal preference as to what to disclose up front, but I felt better just getting it out in the open before the background check happened. As with anything ymmv.

[backtoschool]

BTS, thanks for sharing that info. Hubby is in early stages with two companies and we are trying to figure out at what point we tell them about our BK? Can you share at what stage you told HR? thanks

When the company is ready to make your husband a written offer, they will have him fill out a form that will authorize a background check. Pretty much all full time jobs with benefits require background checks these days. When he fills out the authorization form, he should tell the HR person he is working with (not a clerk. If he is not working with a senior person in HR then he should tell his hiring manager) that there is a bankruptcy on the report that will come up and then have him give a good reason for the bankruptcy. At that point they want to hire him, so it will not be a deal breaker. Bankruptcies come up on a public record search so even if they do not pull your husband's credit per se, most background checks include a public records search.

I am a principal analyst for a venture capital firm and my new job is a managing director/consultant at a management consultant firm (a very big one) and even though I don't deal with money directly, because I am working with financial services, I always have a very in depth background check. Most background checks involve a criminal check, a driving record check, an identity check, and education check, a public record check, and a credit check.

[Fallonedward]

BTS, thanks so much for this info...I'm so very happy that you were able to secure a new opportunity. I'm hoping me and hubby will get job in 2011

I totally agree dspii . I told them of my bankruptcy after I had received a written offer and right before I authorized the background check. Credit checks are the norm for the type of work I do, so I knew that I would have to disclose the information if I received an offer. Unless you have check writing abilities in your job, or you manage large sums of money or are in a position to be bribed, a bankruptcy on a credit report is not really going to be a deal breaker in my experience.

[Flamingo]

When the company is ready to make your husband a written offer, they will have him fill out a form that will authorize a background check. Pretty much all full time jobs with benefits require background checks these days. When he fills out the authorization form, he should tell the HR person he is working with (not a clerk. If he is not working with a senior person in HR then he should tell his hiring manager) that there is a bankruptcy on the report that will come up and then have him give a good reason for the bankruptcy. At that point they want to hire him, so it will not be a deal breaker. Bankruptcies come up on a public record search so even if they do not pull your husband's credit per se, most background checks include a public records search.

I am a principal analyst for a venture capital firm and my new job is a managing director/consultant at a management consultant firm (a very big one) and even though I don't deal with money directly, because I am working with financial services, I always have a very in depth background check. Most background checks involve a criminal check, a driving record check, an identity check, and education check, a public record check, and a credit check.

On every employment application there is a clause/paragraph which authorizes a prospective employer to do a credit and/or background check. Once you sign that form, they can do it at any time - before they interview you or after they interview you to help determine if a second interview is warranted. Most are done prior to any written offer although many people at an interview are informed they will be contacted after all applicants are seen and the credit and/or background check is run. So being verbal about one's BK during the hiring process may need to be at the interview to try to get one's foot in the door. The best thing to do if one is interested in working for a company and is sending in an application - try to do as much homework/research as possible as to that company's hiring practices. The more you know about the company before you walk in there, the better off you will be and the more impressed they will be.