Can Someone Explain Credit Reporting?

fureverywhere

fureverywhere

beloved friend who will always be with us in spiri
Location
Northern NJ, USA
I mean I know basically what it is. And I guess it might be something fairly new on many job applications. But what a crappy feeling. I had a message on the machine that I do not start work on the 4th. I get the feeling I'm going to call and after jumping through several hoops she'll say sorry but we can't hire you...and a happy new year...indeed. I have a degree, I am not a felon, I have a good employment history, I can write beautiful cover letters and resumes.
If you give me a decent job I might be able to pay off my student loans before I die.
Obviously you can't tell an employer that, but this is so frustrating
 

fureverywhere said:
I mean I know basically what it is. And I guess it might be something fairly new on many job applications. But what a crappy feeling. I had a message on the machine that I do not start work on the 4th. I get the feeling I'm going to call and after jumping through several hoops she'll say sorry but we can't hire you...and a happy new year...indeed. I have a degree, I am not a felon, I have a good employment history, I can write beautiful cover letters and resumes.
If you give me a decent job I might be able to pay off my student loans before I die.
Obviously you can't tell an employer that, but this is so frustrating
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Wow! You must be pretty young. But what has this to do with credit reporting? If you suspect you have a bad credit score you should check it out. A bad credit score can work against you in job hunting, security clearances etc.
 
Speaking of Credit scores... WHY do they go down after someone runs a credit report on you? I've been told they do.. and I really don't understand it. One would think that the only thing that should make them go down is not paying your bills..
 

Here's a little information

http://blog.credit.com/2015/04/how-many-fico-scores-are-there-114574/

https://www.credit.com/credit-reports/how-credit-impacts-your-day-to-day-life/

QuickSilver said:
Speaking of Credit scores... WHY do they go down after someone runs a credit report on you? I've been told they do.. and I really don't understand it. One would think that the only thing that should make them go down is not paying your bills..
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http://www.myfico.com/CreditEducation/CreditChecks/Inquiries.aspx

You can obtain your free credit report from Transunion, Equifax and Experian here. There are no FICO scores but it gives you a comprehensive report from the major Credit Reporting Agencies.

https://www.annualcreditreport.com/index.action
 
I'm 53 but I went back to school in my 40's. I know my credit is shot. I am working with the student loans but it takes some time to get them out of default. Even then I won't have a pristine credit score. But it's almost equal to people with an arrest record for something stupid not being able to get federal aid that will help them pull themselves into a productive life. I know I messed up my credit in the past but that doesn't mean I didn't learn from it ya know?
 
fureverywhere said:
I'm 53 but I went back to school in my 40's. I know my credit is shot. I am working with the student loans but it takes some time to get them out of default. Even then I won't have a pristine credit score. But it's almost equal to people with an arrest record for something stupid not being able to get federal aid that will help them pull themselves into a productive life. I know I messed up my credit in the past but that doesn't mean I didn't learn from it ya know?
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Employers look at bad credit as someone who is not dependable (not always fair but it's true).
 
QuickSilver said:
Speaking of Credit scores... WHY do they go down after someone runs a credit report on you? I've been told they do.. and I really don't understand it. One would think that the only thing that should make them go down is not paying your bills..
Click to expand...
I agree but it is true. They discount credit score on all "hard" inquiries. I don't understand it either but I know it to be fact.
 
Employers look at bad credit as someone who is not dependable (not always fair but it's true).

I understand of course, but how to fix the situation? If I can find gainful employment I can fix this and that and everything else.
 
fureverywhere said:
Employers look at bad credit as someone who is not dependable (not always fair but it's true).

I understand of course, but how to fix the situation? If I can find gainful employment I can fix this and that and everything else.
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I have no idea. It's an enigma kind of like they won't give you a job for your lack of experience but until someone gives you a job, how do you get the required experience.
 
AZ Jim said:
I agree but it is true. They discount credit score on all "hard" inquiries. I don't understand it either but I know it to be fact.
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In the last year I've had my credit run 4 times... when I bought a new car... when I applied for a credit line at a jewelry store... and then again when I had to increase that line.. and it was checked when I co-signed for my son's apartment. My score took a hit....

It also takes a dive if you charge a large purchase... EVEN if you pay it off as soon as the bill I received.. I don't understand it... one would think that would INCREASE your credit score..
 
What's crazy about it is I've known people who are carny's or bus people in food places because they are ex cons and/or have drug habits. Even they find work in places that don't look so close at their records. Not the brightest folks either, but proud of those neck tattoos. I've got so many qualities employers are looking for...good references and nothing with the law other than the odd parking ticket...But a student loan or overdue Visa and they lump you in with the ex cons.
 
QuickSilver said:
Speaking of Credit scores... WHY do they go down after someone runs a credit report on you? I've been told they do.. and I really don't understand it. One would think that the only thing that should make them go down is not paying your bills..
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I suspect half the picture is phony. Several of my card issuers (Discover is one), send me my score on the monthly statements. They are closely similar, usually. Still, September showed 819, October 811, November 781; absolutely nothing had been done except paying off the balances in full each statement, yet this big drop. Got one yesterday, it said 809! imp
 
Credit scores drop up and down for the dumbest of reasons at any given moment. They assign points for if you carry over a balance, pay off balance, how much of the balance you pay, late payments, inquiries to your credit, if you apply for credit, how many cards you have and use and so on. Each and every one of those things will effect your score positively or negatively from month to month.

As far as repairing when you don't have credit in the present, often it's a matter of obtaining a secure credit card account of sorts or one of those deep pocket loans that make you pay interest through the roof and being consistent in maintaining your payments over a period of time. Also, age will have an affect on this as well, because if they see your credit history is new, they're going to assume, you've likely gotten past an old history of bad credit and are starting over. It's not fair for sure, but as Jim says, that's the way they do things. Some creditors will accept an alternate explanation in some instances, like if you are a widow or some other such situation and all history had been in a SO name, but, that will depend on the kind of credit you are trying to obtain as to whether they will take this into consideration.

The credit check on job applications is rather routine these days for all applicants.

Try your bank for a secure CC, sometimes if you apply and can't get a regular card they will offer the secure card.

I'll see, sometime, today or tomorrow, if I can find a list explaining how they do they assign the numbers for your credit score.
 
I feel sorry for the younger generations. So much of their lives depend on credit. My granddaughter tells me it effects their jobs, insurance costs, available schools fot their children, where they can live, and so many other things.

My father taught me that I could have things when I could pay for them, and he taught me that credit was like quicksand. My occupation was as an accountant, and I ran a company, so for me that was one best lessons I learned in my youth.

I don't worry about a credit score, and never have, but I can see how it how important is has gotten. :hide:
 
Need More Info....

AprilT said:
Try your bank for a secure CC, sometimes if you apply and can't get a regular card they will offer the secure card.

I'll see, sometime, today or tomorrow, if I can find a list explaining how they do they assign the numbers for your credit score.
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April, what is a secure CC? Thanks! imp
 
Ina said:
I feel sorry for the younger generations. So much of their lives depend on credit. My granddaughter tells me it effects their jobs, insurance costs, available schools fot their children, where they can live, and so many other things.

My father taught me that I could have things when I could pay for them, and he taught me that credit was like quicksand. My occupation was as an accountant, and I ran a company, so for me that was one best lessons I learned in my youth.

I don't worry about a credit score, and never have, but I can see how it how important is has gotten. :hide:
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You could have grown up in my little hometown! Most of the folks there believed exactly as your father did! imp
 
imp said:
April, what is a secure CC? Thanks! imp
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It's a credit card that you secure with a cash deposit into an account the credit establishment holds in case you default on the account. Sometimes the deposit is equal to the amount of the credit the company makes available to you sometimes not.

The bank may ask you to deposit $100 and issue a credit amount for anywhere from $100 to $1000. depending on how they might view the risk. There will be yearly fees as with most credit cards, but, you want to pay off your balances or at the very least more than half the minimum payment required well before payment is due each and every month also best to try not to use the card every month as one should remember this card isn't for the purpose of going all out to make foolish purchases it is to establish or reestablish a good credit history.
 
Ina said:
I feel sorry for the younger generations. So much of their lives depend on credit. My granddaughter tells me it effects their jobs, insurance costs, available schools fot their children, where they can live, and so many other things.

My father taught me that I could have things when I could pay for them, and he taught me that credit was like quicksand. My occupation was as an accountant, and I ran a company, so for me that was one best lessons I learned in my youth.

I don't worry about a credit score, and never have, but I can see how it how important is has gotten. :hide:
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Ina, do you pay for everything in cash, such as things like when you buy a new car? If so, your credit score will have an effect on things like this as well, the person negotiating your loan and so forth will take such things into account when trying to price categorize you. People pay interest on some things accordingly when they don't even know it. I'm not saying that will ever happen in your case, but, for sure if someone hasn't a good credit score based on the whims of how they issue these point systems, it can matter greatly.
 
AprilT said:
Ina, do you pay for everything in cash, such as things like when you buy a new car? If so, your credit score will have an effect on things like this as well, the person negotiating your loan and so forth will take such things into account when trying to price categorize you. People pay interest on some things accordingly when they don't even know it. I'm not saying that will ever happen in your case, but, for sure if someone hasn't a good credit score based on the whims of how they issue these point systems, it can matter greatly.
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I learned a lot of these things the hard way, but, once I understood, I realized, my negotiating powers one way or the other.
 
My parents absolutely refused to get a credit card, therefore did not have a credit score. They had no mortgage or unpaid loans either. It caused several problems. One incident in particular really irked me.

They could not get satellite TV, period, without a credit score. So we had to use my credit card. Because they were getting TV from the same company as I, they could not take advantage of the introductory rates for new customers, because my credit card was associated with an existing account. It was not considered a *new* account. Those introductory rate discounts are huge the first year. Amounted to several hundred dollars.
 

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