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Want to know how important your FICO score is---It can affect whether you get that job you really need

By
Services for Real Estate Pros with Topkins & Bevans-etopkins@topbev.com

Much of America is unemployed. I am not just speaking about young, untrained individuals, who have never been out in the workplace. I am more directing you to that solid group of middle-aged people who have been let go in the past two years from jobs they thought they would have for life. Many of these people were highly paid, highly skilled operatives who fell victim to store closings, plant closing and the like. These were people with 700+ FICO scores, who got the best mortgage rates and the best credit card rates, as well.

The job contraction has hit this group hard. I call your attention to the extremely well-written series authored by Brenda Krueger Huffman for Axcess News (http://axcessnews.com/index.php/articles/show/id/21264; use the same link and change the numbers to 21266,21267 and 21271 for the remaining three articles). In her series, Brenda Huffman chronicles the difficulty out of work people, whose FICO scores have plummeted because they are out of work, are having obtaining jobs that they are qualified for, because their FICO scores have dropped so severely.

I, personally, am at a loss to understand why having a low FICO score would affect your job performance, especially if the diminished score was a function of a person's being unemployed. This seems like the world's worst "Catch 22", and Ms Huffman's articles idenitfy the real trauma in the lives of people being ruined because of their inability to reverse the cycle of their own poverty.

I would urge each of you to read Ms. Huffman's articles and take action. Tell your elected representatives that the current use of FICO to block people's re-entry into the job market is counterproductive and unfair. Thanks!!

Dan Edward Phillips
Dan Edward Phillips, Humboldt and Del Norte Counties, CA - Eureka, CA
Humboldt and Del Norte Counties, CA

Good Morning Elliott, your post provides very important information that needs to be acted upon.

Mar 11, 2011 10:41 PM
Emily Medvec
eXp Realty LLC - Santa Fe, NM
Broker | Realtor | Serving Santa Fe & Northern NM

Elliott, this information is staggering. Can you imagine starting a job interview with your FICO score. Your right, it is truly time for people to take the time to turn this new tide in using a number to identity one's worth. Thank you.

Mar 11, 2011 10:46 PM
Navona Hart
Century 21 Realty @ Home - Farmville, VA
Selling the Best Properties in Central Virginia

Elliot,  I think that if the potential employer is using FICO as a measuring stick they should ask the potential employee if they would like to write a letter of explanation.  good morning BTW.

Mar 11, 2011 10:59 PM
Elliott S. Topkins
Topkins & Bevans-etopkins@topbev.com - Boston, MA
Massachusetts Real Estate and Title Atty

Dan--Thanks for commenting. I am appalled that this is happening.

Emily-I quite agree. Ms Huffman's articles are worth the read.

Navona--That would make sense. From what I understand, the FICO score just "shows up" in the course of the job decision. Of course your score will be down if you are living on unemployment

Mar 11, 2011 11:07 PM
Conrad Allen
Re/Max Professional Associates - Webster, MA
Webster, Ma, Realtor

Hi Elliot - FICO (Fair Issac Company) is a proprietary formula that is unfair.  How do you attack scores when all you know is what goes into them not how they are weighed?

Mar 11, 2011 11:08 PM
Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA
LandlordWhisperer

Since most landlords and rental housing providers can't/don't report deliquent rental payments, I'm wondering the VALUE of of the score for credit granting.

I always RECORD any tenant judgements so that it shows on their credit report and tells subsequent credit grantors that they do not value their HOUSING!!!

Mar 12, 2011 12:07 AM
Virginia Gardner
Roy Wheeler Realty Co. - Charlottesville, VA
Realtor, Charlottesville, Serving Central Virginia

There are people talking about this, but will it ever filter down to the HR people that will make the difference.  This is really awful...

Mar 12, 2011 12:11 AM
Barbara Hensley
RE/MAX Properties - Rockwall, TX
Homes for Sale in Rockwall County, Texas

Elliot, great advise and something to pass along to our clients.  There is no where to hide in this world so if need to be diligent in taking care of our business as not doing so will come back to haunt.

Mar 12, 2011 01:32 AM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Thank you for the post. I hope consumers will be careful and improve the credit scores .

Mar 12, 2011 01:37 AM
Ann Bellamy
Hard money lending for investors in NH and MA - Tyngsboro, MA
Lending to real estate investors since 2006

Good morning, Elliott.  I had no idea that credit scores were used in hiring. But I'm not sure I agree that they shouldn't be used,  as a  barometer of responsibility, for positions with confidentiality or access to company or client funds.  I would see the FICO as irrelevent in many jobs, though.

Mar 12, 2011 11:46 PM
Elliott S. Topkins
Topkins & Bevans-etopkins@topbev.com - Boston, MA
Massachusetts Real Estate and Title Atty

Ann--That is a relevant distinction, and, on the whole, I agree with your approach. On the other hand, the most honest, sonscientious person in the world, can can hit with a two-year layoff, and their credit score will suffer accordingly. I yrge you to read Ms. Huffman's series.

Mar 12, 2011 11:59 PM
Dave Sullivan
Real Estate One - Birmingham, MI
Michigan Realtor with an investor viewpoint

There are a lot of things that surprise people about credit if you want some more information on credit scores check out this free website I found www.thecreditguy.tv

Jan 22, 2012 11:57 AM