What does credit score say about you?

What does credit score say about you?

Postby exploited » Wed Sep 16, 2015 7:56 pm

http://thinkprogress.org/economy/2015/0 ... ks-hiring/

They’re riddled with errors. They’re difficult to correct. And they may be keeping you from getting a job.

But a spotty credit report could cease being a reason for employers to reject applicants, if legislation introduced Tuesday by Sen. Elizabeth Warren (D-MA) and Rep. Steve Cohen (D-TN) becomes law.

“Credit reporting companies that sell Americans’ personal data to potential employers have pushed the narrative that a credit history somehow provides insight into someone’s character,” the lawmakers wrote in an op-ed announcing the Equal Employment for All Act. “In fact, research has shown that an individual’s credit has little to no correlation with his or her ability to succeed in the workplace.”

The bill would prohibit hiring managers from seeking credit information on potential employees unless state law requires a credit check or the job in question requires a security clearance. The latter situation is one of the few where a person’s credit history is actually relevant to their qualifications for employment: Someone in financial trouble is more vulnerable to bribery or blackmail.

But for all other classes of work, the lawmakers argue, credit checks are not only irrelevant but inherently prejudicial. Economic hardship – sudden medical expenses, say, or getting fired – doesn’t automatically ding a person’s credit. Wealthier people with savings to fall back on can weather such bruises without falling behind on bills or running up expensive credit card debts. But for those of fewer means, such bad luck often leaves a permanent mark on the dossiers kept by credit reporting agencies.

...


Credit score is probably the single most fascist part of our economy. While it makes sense from a business perspective - one must control for potential loss when making loans, that kind of thing - it makes no sense whatsoever from a public policy perspective. I think that Warren makes a fine point here - credit score is the way we finance our lives, but it isn't taught to students, it isn't applied fairly, in consideration of personal context, and it shouldn't be used to determine if someone is worthy of a job or not (national security type positions excepted). I think preventing employers from discriminating against the lower classes makes a great deal of sense.
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Re: What does credit score say about you?

Postby Philly » Wed Sep 16, 2015 8:15 pm

Agree that employers shouldn't be allowed to use credit checks to make a decision on job candidates. I would be ok with having some kind of exemption process if the employer can demonstrate a special circumstance where the job they are filling is unique and shouldn't be filled by someone with a bad personal financial history, but I can think of very few situations where there's a job like this even in the reach of most f**k people.

It's a little bit of a tradeoff because there's a general ethos of letting employers determine who is best for the job, but we've done it before with discrimination laws. The main reason I would support banning this practice is that it people who a raised in poverty have a very low chance of pulling themselves into a position to get a career and make good without going into debt and f**k their credit along the way, so it's basically saying if you're a poor, we're going to close off the opportunities you have to earn money and have social mobility. Social mobility is already in terrible shape and we need to fix that.

I have good credit, and it's partially because I've never made it a habit to spend money I don't have or throw money around and worry about the consequences later, but equally or moreso because my parents were well off enough to get me to a good launching point in life without crushing debt. It's wrong that someone otherwise like me, but whose parents never had a dime to help them out would be considered a worse job candidate.

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Re: What does credit score say about you?

Postby Saz » Wed Sep 16, 2015 8:16 pm

Credit score is flame. I'm not 25, haven't held a full time job, i churn credit cards, and have six figures of debt. Credit score is like 790. I can totally see why dumbs would think it's a total conspiracy or something.
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Re: What does credit score say about you?

Postby exploited » Wed Sep 16, 2015 8:24 pm

Saz wrote:Credit score is flame. I'm not 25, haven't held a full time job, i churn credit cards, and have six figures of debt. Credit score is like 790. I can totally see why dumbs would think it's a total conspiracy or something.


:))

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Re: What does credit score say about you?

Postby Philly » Wed Sep 16, 2015 8:25 pm

Saz wrote:Credit score is flame. I'm not 25, haven't held a full time job, i churn credit cards, and have six figures of debt. Credit score is like 790. I can totally see why dumbs would think it's a total conspiracy or something.

You can not have a job, and you can churn credit cards all the time as long as you aren't racking up debt you can't pay off. But poors are subsisting on running up credit card balances they can't pay. Thing is that if you come from poverty, you aren't even going to get to an employable situation outside of menial entry level without getting f**k first. I know you've racked up a lot of loans to pay for law school, but if you had no family support for your actual life in the 7 years between high school and now, you'd almost certain have put yourself into a shit credit situation by now unless you had a full ride and managed to somehow work full time for a decent paycheck while going to both undergrad and law school.
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Re: What does credit score say about you?

Postby Saz » Wed Sep 16, 2015 8:38 pm

Philly wrote:
Saz wrote:Credit score is flame. I'm not 25, haven't held a full time job, i churn credit cards, and have six figures of debt. Credit score is like 790. I can totally see why dumbs would think it's a total conspiracy or something.

You can not have a job, and you can churn credit cards all the time as long as you aren't racking up debt you can't pay off. But poors are subsisting on running up credit card balances they can't pay. Thing is that if you come from poverty, you aren't even going to get to an employable situation outside of menial entry level without getting f**k first. I know you've racked up a lot of loans to pay for law school, but if you had no family support for your actual life in the 7 years between high school and now, you'd almost certain have put yourself into a shit credit situation by now unless you had a full ride and managed to somehow work full time for a decent paycheck while going to both undergrad and law school.


You don't need a family, the government gives you a shit ton of loans that are NOT factored into your credit score. Hell, if my family wasn't theoretically able to support me, according to the government, those loans would have been grants that I wouldn't have to pay back. Most people have no idea how a credit score works and quite frankly, that's on them.

Plenty of poor people have good credit. It's a myth that somehow poverty simply leads you to poor credit. Poor decisions about the use of credit and an ignorance as to how your score is calculated is responsible for that. I can't tell you how many people I know that turn 22, have no credit history, and then wonder why their credit score is shit. A credit score is something to manage and to cultivate so that when you need it, it works for you instead of working against you. Most people do NOT have this approach to credit and instead treat it like some animal to be taken advantage of until it comes back and bites you.
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Re: What does credit score say about you?

Postby Saz » Wed Sep 16, 2015 8:41 pm

exploited wrote:
Saz wrote:Credit score is flame. I'm not 25, haven't held a full time job, i churn credit cards, and have six figures of debt. Credit score is like 790. I can totally see why dumbs would think it's a total conspiracy or something.


:))

The privilege is strong in you.


Yea, I had good parents who aren't financial retards. When I went to college they told me to get a credit card and to use it responsibly to build credit, they didn't tell me some stupid shit about CREDIT IS EVIL and then look on stupidly 4 years later when your credit score is shit because you haven't built any. I've meticulously managed my credit and it has paid off. This idea that you should just be born with awesome credit and people should loan you money based on ZERO history is absurd. A credit score is a financial asset that must be built and managed with the utmost care and diligence.
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Re: What does credit score say about you?

Postby exploited » Wed Sep 16, 2015 8:42 pm

Saz wrote:
exploited wrote:
Saz wrote:Credit score is flame. I'm not 25, haven't held a full time job, i churn credit cards, and have six figures of debt. Credit score is like 790. I can totally see why dumbs would think it's a total conspiracy or something.


:))

The privilege is strong in you.


Yea, I had good parents who aren't financial retards. When I went to college they told me to get a credit card and to use it responsibly to build credit, they didn't tell me some stupid shit about CREDIT IS EVIL and then look on stupidly 4 years later when your credit score is shit because you haven't built any. I've meticulously managed my credit and it has paid off. This idea that you should just be born with awesome credit and people should loan you money based on ZERO history is absurd. A credit score is a financial asset that must be built and managed with the utmost care and diligence.
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Re: What does credit score say about you?

Postby Saz » Wed Sep 16, 2015 8:45 pm

I agreed with you, the first word I said was "yea" you dunce.
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Re: What does credit score say about you?

Postby exploited » Wed Sep 16, 2015 8:47 pm

Saz wrote:I agreed with you, the first word I said was "yea" you dunce.


You're not going to make my explain why this largely disqualifies your opinion as a reasonable grounds for policy, given that we are talking about how best to help people who are largely without privilege or good parents?

The topic posed, Saz, isn't what Saz's parents taught him about credit. It is about what is best to do policy-wise. Please come back and contribute once you've come down from your Trump high.
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