Poor Credit? Don't Bank On It

By
Real Estate Sales Representative with Tara Colquitt, The Credit Woman, LLC

Most people usually think about their credit when they have to use it. Particularly when they are about to purchase a home. However, in today's climate, credit can be the difference between employment and unemployment. Particularly in certain fields.

Yesterday, Good Morning America commented that 200,000 banking jobs would be lost over the next year. I know for certain how this can affect those employees.

Case 1: My fellow BNI member is paying a debt she is disputing simply because as a VP she can't afford any derogatory items on her report.

Case 2: A caller on a radio show stated she was denied a job in her field (banking) after being laid off the previous month. She said it was because of her credit rating.

FYI: Most banks will not allow you to open a savings account if your credit rating is poor. Yes, I said savings.

So, I caution everyone to check their credit (free reports: www.annualcreditreport.com). Do it now before you need it. Even if you think you have good credit, identity theft is rampant and you could unknowingly be a victim. 

If you have any questions, please e-mail me at TheCreditWoman@gmail.com. 

Posted by
  • Would you give a thief direct access to your checking account? 
No? Unfortunately, you may be doing just that by regularly using your debit card. And I use mine all the time. Debit cards may look identical to credit cards, but there’s one key difference. With credit cards, users who spot fraudulent charges on their bill can simply decline the charges and not pay the bill. On the other hand, debit cards draw money directly from your checking account, rather than from an intermediary such as a credit card company.
Because of that, even clear-cut cases of fraud where victims are protected from liability by consumer protection laws can cause significant hardship
While debit card fraud is always a possibility, being careful where you use it can help keep your checking account balance out of the hands of criminals.
For details on four risky places, please click on the link below.
http://www.bankrate.com/finance/checking/risky-places-swipe-debit-card-1.aspx#ixzz1pmyqVPXu

 

Comments (18)

Charlie Ragonesi
AllMountainRealty.com - Big Canoe, GA
Homes - Big Canoe, Jasper, North Georgia Pros
Interesting point about savings bank . Nice post thanks
Apr 01, 2008 11:03 PM
Netta Blackwood
La Rosa Realty - Kissimmee, FL
REO/BPO Expert
Thanks for sharing this information with us.  It also goes to show that in todays market, no job is stable.
Apr 01, 2008 11:08 PM
Gary McAdams
GMAC Schwartz Property Sales - Key West, FL
How true it is.  Cash is no longer king, credit is.  Those 3 numbers known as a credit score are very important things.
Apr 01, 2008 11:10 PM
Scott S. Kamiya
Honolulu, HI
CRS, GRI, SRES

Thank you for sharing, I missed todays show.

 

 Scott S. Kamiya (R)

www.TheKamiyaGroup.com

www.USAASpecialist.com

Apr 01, 2008 11:25 PM
Audrey June-Forshey
RE/MAX Realty Services - Darnestown, MD
GRI, Gaithersburg, MD
Tara, that is interesting. Does that include mortgage lendes/banks?   Do you think those credit protection companies help?  Have you had any experience with that?  I wrote a post about them sometime ago, but didn't get much of a respone?
Apr 02, 2008 12:30 AM
Tara Colquitt
Tara Colquitt, The Credit Woman, LLC - Philadelphia, PA
Credit Counselor

Audrey: One of the comments on one of my blogs from a mortgage broker was that he definitely checks credit because it tells him 'something' about the person. I don't know for sure about all mortgage companies, but it seems to make sense. Unless you can adequately explain why your credit is not up to par (health, loss of employment, death, divorce, etc), you may not look as qualified as an applicant with the same qualifications to many.

Credit protection does work, when it looks at you, not just your credit cards. 

Apr 02, 2008 01:27 AM
Jackie - computer-training-atlanta.com
770.498.7333 - Atlanta, GA
Learn to leverage technology to get more done.
Tara - thanks for pointing this out. Many people overlook the connection between credit and employment. Doesn't credit somehow affect your ability to get some types of insurance also?
Apr 02, 2008 01:35 AM
Eugene Jones
Weichert Realtors - Somerville, NJ
That is really tough. It's like a catch 22 for those 200,000 bank employees. They may lose their jobs, which will in turn may affect their credit, which again may affect their ability to get another job. Maybe the criteria used to decide good or bad credit needs to be looked at, but in the meantime, like you said, we need to stay on top of our credit information.
Apr 02, 2008 03:26 AM
Jeff Fullmer
FM Properties - Idaho Falls, ID
Real Estate Investor/Financier

I will have someone say "oh ya, I was just late a couple times on my mortgage - I will catch up though, not a big deal". Then the education begins! It is understandable to see how 100 points could cost you a full percent on your rate (if you were lucky enough to have started in the mid 700's). What is scary is that your poor credit could cost you your job! Thanks for the info!

Apr 02, 2008 04:02 AM
Tara Colquitt
Tara Colquitt, The Credit Woman, LLC - Philadelphia, PA
Credit Counselor

Jackie: Yes, credit and all types of insurance are now hand in hand. I don't think there is any facet of life that credit doesn't play a part. There was even a comment on a national radio show that people seriously dating should check a person's credit before getting married. As if it isn't hard enough to find someone compatible! 8-)

Eugene: Exactly! I was having a one-on-one with one of my BNI members and I told him that there isn't any human factors in the credit scoring module. It is what it is. Scaring, huh?

Jeff: When I heard about the job issue, I really couldn't believe it until a friend of mine told me he didn't get an Air Traffic Controller position because of a judgment on his report. Wow! I think you should get the job and your pay is garnished. But it is being used as a judgment of who you are. Again, scary, if you may have run into life situations that are out of your control (death, divorce, health issues, unemployment, etc).

Apr 02, 2008 06:28 AM
Sheba Simms
Copywriter, Sheba Simms: Convince. Compel. Convert. - Philadelphia, PA
Wow--great post, Tara.  I didn't know that banks are scrutinizing credit for savings accounts (!!!).  Good stuff!
Apr 02, 2008 09:33 AM
Tara Colquitt
Tara Colquitt, The Credit Woman, LLC - Philadelphia, PA
Credit Counselor
Sheba: Yeah, it is best just to get yourself together credit-wise. Big Brother is watching! 8-)
Apr 02, 2008 11:58 AM
Suzanne Sands
Pavao Real Estate - Somerset, MA
Somerset MA Real Estate

Hi Tara,

This is really good information for consumers. I am shocked to here about the savings account...I guess it makes sense if you owe creditors?

Apr 02, 2008 02:54 PM
Tara Colquitt
Tara Colquitt, The Credit Woman, LLC - Philadelphia, PA
Credit Counselor
Suzanne: It is shocking and most people don't know what the rules are until they break them. 
Apr 02, 2008 08:16 PM
Gayle Balaban
The Best Spot Realty/Waterfront Real Estate/Ooltewah Real E - Chattanooga, TN
E. TN Waterfront Real Estate
This credit thing is so out of wack in my opinionl.  What on earth would credit matter to open a savings account?
Apr 03, 2008 05:02 PM
Tara Colquitt
Tara Colquitt, The Credit Woman, LLC - Philadelphia, PA
Credit Counselor
Gayle: I agree and only because real people have told me half the things I know do I believe it. But it doesn't make sense to me either.
Apr 03, 2008 09:13 PM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Tara, we run a Credit Report on anyone that we are considering to hire, but one derogatory items on the report would not keep us from hiring them if everything else looked good.

This is the first time that I have heard that banks not allowing you to open a savings account if you have a bad Credit Rating.  I could see maybe a checking account, but why would they care on a savings account?

Apr 05, 2008 12:40 PM
Tara Colquitt
Tara Colquitt, The Credit Woman, LLC - Philadelphia, PA
Credit Counselor
George: Funny, I forgot to comment on your comment, but I have used your hiring practices when talking to people in the last couple weeks. Proof again of what happens in the real world. And that's where I got the savings account information, from real people just like you. That is the best education.
Apr 19, 2008 09:06 PM