1 More Reason to Have Good Credit ... and Keep Good Credit

By
Mortgage and Lending with NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 IL Lic 031.0006220/WI
https://activerain.com/droplet/4tzP

 

1 More Reason to Have Good Credit ...
and Keep Good Credit




     Did you know that ... according to a survey by the  Society for Human Resource Management,  60% of private employers check the credit histories of at least some of their job applicants.  13% conduct them on ALL candidates. 

Website of Gene Mundt, Mortgage Lender 

     Rather sobering statistics that provide even more credibility to my ongoing message regarding the importance of good credit.  Creating a good credit history, then maintaining it is vital these days.  It's why I recommend checking your credit, at minimum, once per year, either by going to www.annualcreditreport.com, or by contacting me.

     Proof ... strong proof ... lies within these stats.  More and more of our lives are dependent on our credit status.  Insurance rates.  Obtaining cell phones.  Loans of all types.  Renting an apartment.  Utility services within our homes and businesses.  Jobs.

     And yes, you read that right.  JOBS ...

     Here in Illinois (other states also - Hawaii, Washington, Maryland, Connecticut, California, and Oregon) we have laws and rules prohibiting employers from using an applicant's (or current employee's) credit history when making decisions regarding employment.

     On January 1st, 2011, it became unlawful for Illinois employers to utilize credit reports in this manner ... unless a "satisfactory credit history is an established bona fide occupational requirement of a particular position or a particular group of an employer's employees".  An example of that?  To receive a mortgage license to do  mortgage lending within the State of Illinois, I had to undergo fingerprinting and a credit check.  There are other employs that require the same.

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     But for those states that do NOT have a similar law or protections in place, the issue remains.  Poor credit, or even credit issues from your past, can come back to haunt you in the present when you make application for a new job.  And with American credit card holders between their late 20's and early 30's  acquiring more debt  than older consumers, the issue of credit could loom even larger in the future. 

     What do employers hope to learn from running a credit report on a job applicant or employee?  Simply, they're looking for clues into the behavior and mindset of that applicant.  They're looking for a glimpse of their priorities. Their approach to life.  What the likelihood for fraudulent behavior or activities might be, if hired? And a whole host of other insights that would somehow show how they might conduct their job. 

     One note should you be applying for a new job.  An employer can not run a credit report without notifying you in writing that they are going to do so.  They must also gain your written authorization to run the report.  And the report they acquire is just that, a report.  It does not include actual credit scores.  But again ... what are they looking for?  The below are the most common "red flags" that an employer will look for:

     *  Foreclosures
     Bankruptcies
     *  Liens
     *  What percentage of your credit you are utilizing on credit cards, loans, etc.
     *  Late Payments and Late Fees
     *  Recent activity, inquiries, or credit usage

      All of the above truly provides you 1 More Reason to Have Good Credit ... and Keep Good Credit.  Although there are protections in place in many states, the facts remain ... many states DO allow employers to run credit ... and credit and credit scores are increasingly important.  

     Credit maintenance is important and should be a full-time focus. Not just when you're hoping to find a new job.  Not just when you're dreaming of buying a home.




    Dreaming of buying a home in Chicagoland?  Contact me now.  We'll check your credit and get you on the right path to home ownership.
     I can be conveniently found through any of the following:

Direct:  815.524.2280
Cell/Text:  708.921.6331
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Gene Mundt

 Mortgage Originator  -  NMLS #216987    

                                 IL Lic. #031.0006220  -  WI License #216987                                                                                                    

NMLS #175656

 

Gene Mundt, Mortgage Originator,  40+ years of #mortgage experience, will offer you exemplary mortgage service and advice when seeking:  #Conventional, #FHA, #VA, #Jumbo, #USDA, and Portfolio Loans in #Chicago and the greater Chicagoland region, including:  The #Lincoln-Way Area, #Will County, (#New Lenox, #Frankfort, #Mokena, #Manhattan, #Joliet, #Shorewood, #Crest Hill, #Plainfield, #Bolingbrook, #Romeoville, #Naperville, #Wilmington, #Peotone, etc.), #DuPage County, the City of Chicago, #Cook County, and elsewhere within IL and Wisconsin. 

 

Your Referrals & Testimonials are Always Greatly Appreciated! 

 

 

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Paul McFadden 01/29/2013 07:05 AM
Topic:
Lending / Financial
Location:
Illinois Will County Joliet
Groups:
Mortgages
Chicago And Illinois - A great Place to Live
Posts to Localism
Bananatude
WillCounty
Tags:
jobs
credit
credit scores
credit reports
credit management
young adult credit
employers running job applicant credit

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Show All Comments
Ambassador
643,299
Mona Gersky
MoonDancer Realty, Dillsboro,NC - Sylva, NC
GRI,IMSD-Taking the mystery out of real estate.

Gene, if there was a Pulitzer Prize for AR writers I think you would get it.  Just like taking care of your credit, employers are looking at all kinds of things when they are considering an applicant...drunken videos, rants or just acting dumb can all come back to haunt someone.

Jan 29, 2013 11:25 AM #18
Rainmaker
1,250,578
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

Chuck:  There are valid reasons to follow this practice of credit checking.  It makes sense ... in some occupations.  Just as you mention, the ramifications could be far reaching ... thank you for providing a good example ...

Joan:  A report I read said that in the majority of cases, companies do provide an opportunity for applicants (should they be good prospects otherwise) to explain their credit issues.  That provides some hope.  But I am sure, as you point out, that there are those times when that is not the case.  A growing number of states are making laws to address this.  Bad things happen to good people ... and that should be taken into account.  Especially in these times ...

Gene

Jan 29, 2013 11:32 AM #19
Rainmaker
1,250,578
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

Mona:  I have had that very conversation with my own kids.  Social media can be a huge positive for you.  Very helpful.  Used unwisely .. incorrectly .. and it can bite you hard.  Future potential schools and employers check social media now.  That besides credit reports.  Lots of ways to trip yourself up.  Hard way to learn that ...

I do appreciate you very kind words, Mona.  Given what a talented writer you are ... they mean alot to me.

Gene 

Jan 29, 2013 11:38 AM #20
Rainmaker
766,092
Jill Sackler
Charles Rutenberg Realty Inc. 516-575-7500 - Long Beach, NY
LI South Shore Real Estate - Broker Associate

And now with social media, employers want to know everything about potential employees.

Jan 29, 2013 12:01 PM #21
Rainmaker
647,193
Kathy Sheehan
Bay Equity, LLC 770-634-4021 - Atlanta, GA
Senior Loan Officer

Gene, well deserved feature and 100% on the mark.  Credit is so very important for all of those reasons.  They certainly put us through a lot in order to get that mortgage originator license.

Jan 29, 2013 12:02 PM #22
Ambassador
4,302,956
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Gene, maintaning a good credit is almost equivalent to having a good reputation - at least financial reputation and sometimes, forgotten payments to ome departmental stores really really makes a big difference in one getting a better mortgage rate!

Though I hope (Home, Auto) Insurance Industry does not follow this...

Jan 29, 2013 02:17 PM #23
Rainer
28,470
Rick Perry
Realty World - Select - Stafford, VA
RickP

Thanks Gene and excellent article!  Your credit really says alot about the individual! 

Jan 29, 2013 02:36 PM #24
Rainer
296,283
Paddy Deighan JD PhD
TimeshareLawyers.pro - Vail, CO
Paddy Deighan J.D. Ph.D

even car insuance are checking credit at this point and adjusting rates based upon credit scores!!!

Jan 29, 2013 05:08 PM #25
Rainmaker
2,701,369
Debbie Gartner
The Flooring Girl - White Plains, NY
The Flooring Girl & Blog Stylist -Dynamo Marketers

Gene - Excellent post. It's amazing what a large impact your credit history can have.  Good credit can open a lot of doors; bad credit makes it very challenging to get ahead.

Jan 29, 2013 05:20 PM #26
Rainmaker
1,503,853
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • Green • GRI • HAFA • PSC Calabasas CA

I just received another application with credits on my high end rental house.....I've never seen that bad credit. The guy said earlier that he has a good credit......good? Chapter 13, defaults on his mortgages and credit...... pages and pages of other bad staff.....I don't think he will be able to rent anything any time soon.

Jan 29, 2013 06:17 PM #27
Rainmaker
2,305,277
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

You share an important topic, but it doesn't always tell a complete story and should be the only criteria for making a decision on a new hire.

Jan 29, 2013 07:09 PM #28
Rainer
139,841
Ridhi Raheja
Movement Mortgage (Illinois) - Naperville, IL
FHA, 203k, VA, Jumbo, PreApproval, Jumbo Home Loan

Indeed, credit check have become mandatory already to some major companies. 

Jan 30, 2013 12:41 AM #29
Rainmaker
1,250,578
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

Definitely, Jill.  There is little way to hide any longer or remain private.  Especially if socially involved via the internet ...

That's true, Kathy!  Understandable to some degree ... but knee-jerk in another. 

Praful:  Insurance companies do utilize credit in considering rates and availability of coverage already.  Many types of utilities also do this.  I don't think people realize just how deeply into your financial "reputation" the fingers of credit go.  Until it's too late, of course ...

Rick:  True.  It can.  But we must also remember that there are sometimes extenuating circumstances that are reflected there.  Providing people a chance to explain remains important ...

True, Paddy!  And people need to be aware of that fact ...

Debbie:  You're spot on in your assessment.  And you touch upon why it remains so vitally important to protect your credit, as best you can ... and remain vigilant ...

Inna:  Exactly what I see as a mortgage lender far too often.  Either the individual has no clue to their credit standings (which is bad enough) ... or they are lying.  They can't possibly believe that the truth will not be revealed, can they??

Joe:  Definitely true.  And as we have a "Letter of Explanation" with mortgage lending, there should be an opportunity to address credit issues when applying for employment.  Errors happen.  Circumstances are not always what they appear.  Give a person a chance to explain ... it's important ....

Gene

Jan 30, 2013 12:43 AM #30
Rainmaker
1,250,578
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

Very true, Ridhi.  We are increasingly reliant on these numbers.  They are a measurement ... but one that should come with the ability to be explained ...

Gene

Jan 30, 2013 12:45 AM #31
Rainmaker
1,332,535
Nick T Pappas
Assoc. Broker/Broker ABR, CRS, SFR, e-Pro, @Homes Realty Group, @HomesBirmingham & Providence Property Mgmnt, LLC Hun... - Huntsville, AL
Madison & Huntsville Alabama Real Estate Resource

Gene, things have changed a bit since the last time I had to submit a resume...employers can afford to be very selective.

Jan 30, 2013 08:48 AM #32
Rainmaker
1,250,578
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

Definitely true, Nick ... and if the applicants come down to one with good credit .. the other without, it's easy to think that a company utilizing this method of choosing is going to pick the better credit report applicant.  Seems only natural that they would ...

Gene

Jan 31, 2013 12:34 AM #33
Ambassador
2,918,444
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

I have also heard that insurance rates can be different for different credit scores.

Jan 31, 2013 11:48 AM #34
Rainmaker
1,250,578
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

You've heard right, Tammy.  There are so many things dependent on credit .... and we must be aware of that and act accordingly ...

Gene

Feb 01, 2013 12:47 AM #35
Rainer
194,597
Stephanie Stringer
First Choice Loan Services NMLS#210764 - San Antonio, TX
Mortgage Loan Originator

Gene-  So true my friend.  When I was a manager of a bank many years ago, there were some great people who interviewed well and was looking to hire them.  Well after reviewing the credit report and seeing they could not manage their own money, I quickly changed my mine on extending an offer to them.  If they can't hand their own finances then they don't need to be working at a bank. 

Feb 01, 2013 02:01 AM #36
Rainmaker
1,250,578
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

Stephanie:  There ARE professions where it makes sense to pursue a credit report.  No doubt about it.  At minimum, a poor report should be fodder for a good talk with a candidate prior to making a decision on employment.  

Gene

Feb 01, 2013 05:01 AM #37
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Rainmaker
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