Employers and credit check ?

[CastleKnight]

Hello:

This is my first post.I have been lurking for a while. This site has been very helpful. We are filing Chapter 7 in about 2 weeks. Paperwork all ready just need to sign and file. I may have a job interview prior to filing. At what phase of the hiring process is the employeer likely to run the credit check? Before you are called for the interview or after?
Unreal as it seems, I have an Equifax fico of 798 and my husband has a Transunion score of 908. I would like to be able to get a job in the next 2 weeks while my credit score is good. We have had a run of bad luck with our family business and a brain tumor and my husband had to be out on medical leave. Our attorney said we are so low with no income for 4 months I could go and apply for a job.
Any input is appreciated. Thank you, Kay

[Flamingo]

Hello:

This is my first post.I have been lurking for a while. This site has been very helpful. We are filing Chapter 7 in about 2 weeks. Paperwork all ready just need to sign and file. I may have a job interview prior to filing. At what phase of the hiring process is the employeer likely to run the credit check? Before you are called for the interview or after?
Unreal as it seems, I have an Equifax fico of 798 and my husband has a Transunion score of 908. I would like to be able to get a job in the next 2 weeks while my credit score is good. We have had a run of bad luck with our family business and a brain tumor and my husband had to be out on medical leave. Our attorney said we are so low with no income for 4 months I could go and apply for a job.
Any input is appreciated. Thank you, Kay

An employer usually runs the credit check after they have met with you and they have your signed application providing your social security number. It will be stated in the application or other paperwork that a credit check will be run and/or background check. They will also do a background check at the same time. That information will help them decide whether or not to call you back for another interview. They do not have to disclose to you that they based their decision on your credit report or background check. If you apply before you file or shortly thereafter, the BK will not yet be on your credit reports; however, any late payments or other bad credit will that may be there prior to you filing.

[roki]

I did my bankruptcy in Florida but i lived all my life in Puerto rico which is under U.S Federal Jurisdiction but is the most autonomous of U.S territories. In 1996 the Puerto rican Congress past a law making it illegal for employers to check people's credit. The only exemption was given to banks and financial services. I remember there were some stateside companies denying employment do to bad credit reports specifically i remember there was a big case against colgate palmolive which a class action sued of over 140 people were rejected on credit history and somehow the lawyers were able to prove it they had to paid???? Another thing that i admired about Puerto rico is that medical bills are not aloud to lien your house or garnish your waiges and you wont believed this there are not allowed to touch your credit history. The only thing Medical collectors could do is take to court and maybe lien a second property or some other asset that you may have excluding your personal bank accounts and so. i am going back????

[CastleKnight]

Thanks for the quick replies. I applied at several retail places,a grocery store and a financial institution ....all had the waiver to sign for a credit check. I was told at one retail store that hey received my application thru their website where I applied(and agreed to a check) and I would be interviewed because I had 2 greens. Not sure what that means...but I thought maybe they do the credit check first to see if they even want to proceed with an interview. Just hoping I can get an interview, get cleared thru the credit system and maybe get hired before we file. I will juet have to try it and see what happens. If anyone else has any info it will be appreciated.

[PhillyB]

An employer usually runs the credit check after they have met with you and they have your signed application providing your social security number. It will be stated in the application or other paperwork that a credit check will be run and/or background check. They will also do a background check at the same time. That information will help them decide whether or not to call you back for another interview. They do not have to disclose to you that they based their decision on your credit report or background check. If you apply before you file or shortly thereafter, the BK will not yet be on your credit reports; however, any late payments or other bad credit will that may be there prior to you filing.

Your statement is completely untrue.

http://www.ftc.gov/bcp/conline/pubs/buspubs/credempl.shtm

If they use credit info and judge in a negative way, they must notify you.

It is also illegal to deny employment solely on the case of Bankruptcy, regardless who the employer is. Remember that as well.

[AboutToBK13]

Your statement is completely untrue.

http://www.ftc.gov/bcp/conline/pubs/buspubs/credempl.shtm

If they use credit info and judge in a negative way, they must notify you.

It is also illegal to deny employment solely on the case of Bankruptcy, regardless who the employer is. Remember that as well.

Well yes and know. If you are applying for a gov. job that requires clearances or a job managing money, then you can bet that your credit can and will weigh heavily on your application.

However, having said that being honest is always the best policy. As long as you are not trying to hide your past difficulties, than most employers are understanding. At least that was the situation in my case.

[coma]

My husband received a top secret clearance while in open bankruptcy. The investigator that interviewed him asked about it, and he was honest, stating why we filed, and he passed anyway. His job does not involve money, but involves some level of classified information (he's in the military). YMMV...some employers overlook it, depending on the circumstances and the job.

[Flamingo]

Your statement is completely untrue.

http://www.ftc.gov/bcp/conline/pubs/buspubs/credempl.shtm

If they use credit info and judge in a negative way, they must notify you.

It is also illegal to deny employment solely on the case of Bankruptcy, regardless who the employer is. Remember that as well.

Working closely with HR folks for 23 years, most people who have bad credit and do not get hired usually get the "While the decision was hard and your qualifications excellent, we have decided on someone else to fill the position who more closely meets our needs and we believe more suited for the position" (or similar wording). Now if the position is in finance or banking, what you state above is true (I probably worded my original posting badly). But I was aiming more for anyone applying for a general position having bad credit or bankruptcy looming around the time of filing for a position. Employers, to avoid be sued for any reason in today's sue happy world, usually will state the above when denying a position to avoid any possibility of age or other discrimination.

The best thing to do is to bring up the BK or bad credit issue prior to them finding out about it via a credit check and to be open and honest. Most, if not all, employers check both credit and background (criminal) records now so its best to investigate the company or establishment you are going to have the interview with before hand as to all their policies, procedures and other practices - in other words, do your homework and be prepared. They will love that you took the time to investigate them and show an interest in working for them.

[PhillyB]

Well yes and know. If you are applying for a gov. job that requires clearances or a job managing money, then you can bet that your credit can and will weigh heavily on your application.

However, having said that being honest is always the best policy. As long as you are not trying to hide your past difficulties, than most employers are understanding. At least that was the situation in my case.

Top secret clearances aside, most "sign" on credit checks, but quite a few don't actually check. I got a job about 7 months ago, signed on the "credit check authorization line" and they never pulled my credit. YMMV, but that was for me.

I agree, honesty is the best policy though.

[CastleKnight]

Thanks for all the feedback. I did get a shift supervisers job at a drug store last week. All the credit check/back ground checks,drug screen were done and all came back A-ok. Our filing actually went thru today. We had good credit up until the filing due to husbands recent health issues.So unless it bites me in the behind and someone tries to fire me after the fact .....it looks like I am officially employed. Thanks again, CastleKnight

[CindyLou]

remember, the form for a back ground check is the same exact form for a credit check. They consider a criminal background check a "consumer report". And many times employers also use this form as a generic catch all form to also cover them when checking your references. So a signed form does not always mean a credit check.

[jennordhavn]

remember, the form for a back ground check is the same exact form for a credit check. They consider a criminal background check a "consumer report". And many times employers also use this form as a generic catch all form to also cover them when checking your references. So a signed form does not always mean a credit check.

That is true. I had to sign a form authorizing my potential employer to run a background and credit check, but they specifically told me they only run it to verify your SSN and addresses and to verify if you have any criminal history. I think many companies use the "standard" form, but only run background checks.