My life flashed before my eyes...

[peewee_RotA]

some companies are going so far as to run credit checks on applicants.

I've worked in the corporate back end of 2 banks and and a school, and have had everything from FBI background checks to a thorough review of all my places of residency since 10 years before I was born. So far no credit checks.

[Art]

Sometimes it looks good on job applications too, some companies are going so far as to run credit checks on applicants.

Applicants amd  present employees included, if it's a union plant and contract time is near. I suspect union locations actually prefer workers who are strapped for money and have large debts. Welfare people are easier to control. Throw'm a bone and they'll go along with anything.
 

[The Happy Friar]

Credit is great to have. If you can manage to charge up a bit and pay it off in full every single month when the bill comes, they'll steadily keep increasing your credit limit, which also helps your credit score, which in turn helps you when applying for loans. Sometimes it looks good on job applications too, some companies are going so far as to run credit checks on applicants.

bank held my large "credit" against me.  Said I had to much credit.  WTF?  Never payed a bill late, never ran a balance in anything.

[peewee_RotA]

bank held my large "credit" against me.  Said I had to much credit.  WTF?  Never payed a bill late, never ran a balance in anything.

That's odd. Must mean that they can't get enough money from you in interest.

My dad has awesome credit. I wish he'd tell me his secrets.

[The Happy Friar]

to top it off I had to ARGUE with the bank that I didn't want to spend as much money as they wanted to give us.   Why?  Because I knew how much we could afford monthly & what they said we should do was WAY more then we could afford.  They didn't seem to care we needed to eat & pay taxes on the house. 

[DWxchzrles]

to top it off I had to ARGUE with the bank that I didn't want to spend as much money as they wanted to give us.   Why?  Because I knew how much we could afford monthly & what they said we should do was WAY more then we could afford.  They didn't seem to care we needed to eat & pay taxes on the house. 

Just maybe that is the reason why the banking industry is in bad shape today?

[|iR|Focalor]

I've worked in the corporate back end of 2 banks and and a school, and have had everything from FBI background checks to a thorough review of all my places of residency since 10 years before I was born. So far no credit checks.

I guess some places feel that if a person is irresponsible enough to default on loans, then they're probably not going to be a responsible employee either. Makes a little sense, but I still find it to be a loathsome practice. Sometimes these companies overstep their boundaries. Christ, at what point does someones personal life become THEIR OWN???

[QwazyWabbit]

to top it off I had to ARGUE with the bank that I didn't want to spend as much money as they wanted to give us.   Why?  Because I knew how much we could afford monthly & what they said we should do was WAY more then we could afford.  They didn't seem to care we needed to eat & pay taxes on the house. 

Just maybe that is the reason why the banking industry is in bad shape today?

Yep. They over-extended to get their commissions, got tacit or even active approval from their underwriters and now we see the results.

[QwazyWabbit]

bank held my large "credit" against me.  Said I had to much credit.  WTF?  Never payed a bill late, never ran a balance in anything.

That's odd. Must mean that they can't get enough money from you in interest.

My dad has awesome credit. I wish he'd tell me his secrets.

I'd ask him. I didn't ask my dad and I wish I had, but then he watched me build my credit when I was young and I am sure he would have said something if I was being an idiot about it. My first CC was a dept. store card (now inactive) and 2nd was a Visa that I still keep active.

Simple answer: Use your credit wisely.
Don't run up big balances and then under-pay or pay monthly minimums. Don't spend on credit more than you could otherwise afford to pay in cash that month or in a month or two. Pay off your credit card balances first, then keep them low. Don't close unused credit accounts. Keep them locked up once they are zero-balance. Close the ones that charge annual fees but never close more than one per year, that will hurt your credit score even if you initiate the closure. If you have annual-fee cards, call the CC company and see if you can get them to make it fee-free, it never hurts to ask. If they don't have a free card, take a lower interest rate, they do want to keep you if you are paying as agreed. An inactive credit card shows "Pays as agreed" even though it is classed inactive by the CC company holding it.

If you have CC balances, pay the highest interest rate cards off first, pay twice the minimum or 1/2 the balance off until you get to zero, then lock them up and don't use them except in dire emergencies. Pay off car loans on schedule, double up if you can afford to, especially early on in the life of the loan as that will pay down the principle ahead of schedule and you will save the interest. Don't pay it off too early if their is a early payoff penalty. Pay it on schedule and bank any reserve cash after your monthly budget.

Always keep a savings, even if you can only afford to put away $50.00 a month. Don't buy that Wii or 72-inch TV if you have to give up spare cash each month. You simply can't afford not to save and luxury items are NOT a necessity of life even if the commercials tell you they are. Instant gratification won't make you truly happy if you have to remain in debt.

Keep your job, layoffs can be unavoidable but don't be a 2-year per job resumé builder. Continuous employment at one employer for 5 or 6 years is much better than 3 employers over the same period. When I see resumés of 30 year old VP's who spend two years at places and move on with all kinds of "lean" and "saved costs" and "Black-belt" and "implemented JIT" and other buzz words I see a guy who has no commitment to the company he works for who is solely interested in his own career and hasn't learned anything useful except how to polish a resumé or his bosses knob. Because at 30, he didn't "implement" anything, he participated, probably as a minor player in a commitee who steered the project and they probably fouled the whole thing up so bad they made up the numbers just so the President could claim it a success.

If in school, stay in school. Student loans may feel like an axe over your head but if you can stay in school during a job slump in your region you will be better off in the long run.

If graduating, look for a job with good long-term prospects, preferrably in a position that is a profit-making position rather than an overhead position. Being in Management may seem attractive but new hired "management" is a liability when profits are low and layoffs are coming.

Never let a lender talk you into taking on more debt than you can afford. How much can you afford? If you have to eat dog food to make the monthly mortgage, it's probably more than you can afford. That big house comes AFTER you have that cushy management job at the local chip foundary.

Your credit score does NOT depend on whether you keep a balance on a CC or whether they are making money off you on interest. They make money on each transaction so the interest you pay is gravy to them. It's also really stupid to keep a balance on a card when you can afford to pay it off.

[QwazyWabbit]

I've worked in the corporate back end of 2 banks and and a school, and have had everything from FBI background checks to a thorough review of all my places of residency since 10 years before I was born. So far no credit checks.

I guess some places feel that if a person is irresponsible enough to default on loans, then they're probably not going to be a responsible employee either. Makes a little sense, but I still find it to be a loathsome practice. Sometimes these companies overstep their boundaries. Christ, at what point does someones personal life become THEIR OWN???

Short answer: Never. Your personal life and the evidence (credit report) of it indicates who you are.
A person deep in debt might be inclined to steal or embezzle. A person in debt might be bribable or encouraged to spy for money. A person with a bad habit involving expensive "services" or items might be blackmailed into doing something illegal or against his employer. Background checks for jobs involving security clearances always involve credit checks. The fact you didn't detect the credit check does not mean it didn't happen.

[peewee_RotA]

Short answer: Never. Your personal life and the evidence (credit report) of it indicates who you are.
A person deep in debt might be inclined to steal or embezzle. A person in debt might be bribable or encouraged to spy for money. A person with a bad habit involving expensive "services" or items might be blackmailed into doing something illegal or against his employer. Background checks for jobs involving security clearances always involve credit checks. The fact you didn't detect the credit check does not mean it didn't happen.

I'm pretty sure that none of the 3 mentioned places would have paid for that on their own seeing as they all made a big deal to either take the original ammount form my first paycheck or to pay up front with a money order or credit card. It's possible, but pretty unlikely that all 3 places that are so elaborately cheap would hide something like that.

[QwazyWabbit]

If they paid for an FBI report and to have you bonded they paid for a credit check. The fees charged by the CRA's are very small to banks, IIRC, on the order of $10 or $25, small change compared to running NCIC or FBI on you. Most places have an account with Experian or TRW and they can do it in about 5 minutes or less. A bank can run your credit report cheaper than you can... up until the federally mandated free annual one became law.

Ever test driven a car at the dealership? Did they make a copy of your drivers license before you went on the road with the salesman? Guess what the back office at the dealer was doing while you were checking out that spiffy new car... they were running your credit to see if you had spiffy credit to buy the car. It is also the basis for the interest rate and/or down payment on the loan they will offer you should you decide to buy it.

One customer I attend does BI's on anyone coming to the facility for longer than a couple of weeks. We're talking full DoD clearances, etc. They have you sign a FCRA disclosure form where you must agree to allow them to run a credit check. They are more concerned with that aspect of the forms than any other. The DoD stuff can be run no matter what and they do, but you better sign this here FCRA form or else.

[The Happy Friar]

Ever test driven a car at the dealership? Did they make a copy of your drivers license before you went on the road with the salesman? Guess what the back office at the dealer was doing while you were checking out that spiffy new car... they were running your credit to see if you had spiffy credit to buy the car. It is also the basis for the interest rate and/or down payment on the loan they will offer you should you decide to buy it.

never did that for me when I bought my USED car (it was only a year old & in great condition, but still had some miles on it).  Infact,  I used my credit & a little "extra info" to my advantage on that one.  They said "wow, you have good credit" & then wanted me to pay ~8% interest.  I said I was looking at a credit union & they had 5.8% interest.   They didn't believe me so I showed them the website.  The guy said "I'll be back".  5 minutes later came back & said "how about 6%?".  I never talked to the credit union at all, I just looked at their website a few days earlier.  Paid off the car after 3 years (was a 6 year loan).  Very happy.