The Catch-22 of Credit Scores

[mawilson 2,133]

An interesting anecdote to this (at least to me ) is when I was interviewing for a company way back when - they were hiring 2 of us and indicated they would pull my credit (soft hit) as part of the interview process. Mine was fine, but the other girl who they wanted to hire was well below what they considered acceptable. Eventually we were both hired and secured personal policies as a perk.

During training she was talking about how her 4 year old had broken her large screen tv. She presented it to them as a new loss and that she had been cleaning and slipped and broke it (due to the new date and cause of loss - it was covered now!). After that she complained how her home floods and how much damage they had to clean up (prior loss - before she was hired at this company). She wound up quitting a year after being hired. A few weeks after quitting, she called to report her house burned down (it was found as caused by a burning cigarette left on the bed). The company paid the claim and set her up to be canceled, and she was still calling to get proof of insurance to use a bulldozer to level her house. We all cringed whenever we took a call from her.

She was also in the paper a year later arrested for fraud (I guess trying to cash a check on a closed account or similar).

Hahaha, should have trusted the credit score!

Edited July 24, 2010 by mawilson

[I AM NOT THAT GUY 5,715]

One of the biggest dings that will get you turned down for a loan is too many open lines of credit.

[evli1966 88]

Funny, because several Bank of America credit lines I closed, IN GOOD STANDING, now reside on my credit rating under negative items.

-Blu-

you have a right to know what the derogative remarks are you have to send a written letter requesting the remarks.

This is saying they were not in good standing.

If they can not provide a reason for the derogatory remarks you can ask them to be removed at it is up to the bank to remark again against it if they do they have to provide a reason.

[mawilson 2,133]

Funny, because several Bank of America credit lines I closed, IN GOOD STANDING, now reside on my credit rating under negative items.

Why would there be negative terms if the debt was fully paid?

[evli1966 88]

Hahaha, should have trusted the credit score!

I guess with your philosophy we now know why unemployment is at its highest in 50 years and will not get better.

According to a recent FICO study, over one-fourth (25.5%) of Americans have poor credit. Nearly 43.4 million people now have a credit score of 599 or below. When you go to the grocery store or a ballgame, look around–one in four people around you have serious financial problems.

http://womantribune.com/tips-consumers-bad-credit-scores

I am sure anyone you have hired had a credit check and you monitor their financial periodically to protect your company. That is if you are even an employer.

Do not get me wrong everyone is responsible for their own hole they dig and needs to dig themselves out of debt.

[I AM NOT THAT GUY 5,715]

Why would there be negative terms if the debt was fully paid?

My thoughts as well. Credit scores are based on your ability to use credit, so if no late pays, etc., why the ding?

ETA: Of course, it was Bank of America...

Edited July 24, 2010 by ##########

[LaL 418]

Hahaha, should have trusted the credit score!

Yup - and I bet they trusted their hiring policies going forward.

[Wyld Blu 35]

Why would there be negative terms if the debt was fully paid?

There were several paid in full and closed because, well, I HATE B of A. What I was told by an agent at Experian was that whenever you close a line of credit, regardless of the standing, you will receive a ding. He also said I could write in to have them removed, which I did...twice now.

-Blu-(who is a SHE, not a HE. )

Edited July 25, 2010 by Wyld Blu

[Texanadian 10]

I actually agree with El Buscador. Get rid of the employment + credit score routine. Heck, it could be argued that it's the opposite. People in debt are willing to work and work hard. Work overtime. Whatever. They gotta get their bills paid. Even if you've never been late on a credit card, utility bill, phone bill etc, your score can still go in the dumpster simply because you have a credit card that is slowly being paid off.

The strange thing about credit scores is that like everybody else here, I had zero credit history and no credit score when I moved to the USA. I managed to grow it up to 750 FICO BEFORE I ever got my 1st job in the US. Now how is it that somebody with zero work and credit history in the country can have great credit? I don't have a mortgage, no car loan, one credit card. No personal loans. My credit report can fit on a post it note.

Let's face it. In the working world, there are energetic and lazy people with good credit and there are energetic and lazy people with bad credit.

[I AM NOT THAT GUY 5,715]

I actually agree with El Buscador. Get rid of the employment + credit score routine. Heck, it could be argued that it's the opposite. People in debt are willing to work and work hard. Work overtime. Whatever. They gotta get their bills paid. Even if you've never been late on a credit card, utility bill, phone bill etc, your score can still go in the dumpster simply because you have a credit card that is slowly being paid off.

The strange thing about credit scores is that like everybody else here, I had zero credit history and no credit score when I moved to the USA. I managed to grow it up to 750 FICO BEFORE I ever got my 1st job in the US. Now how is it that somebody with zero work and credit history in the country can have great credit? I don't have a mortgage, no car loan, one credit card. No personal loans. My credit report can fit on a post it note.

Let's face it. In the working world, there are energetic and lazy people with good credit and there are energetic and lazy people with bad credit.

No credit is better than bad credit.