Category: Myth

credit score, employers, American Public Media

Sometimes, it gets nasty.

In 2009, American Public Media responded regarding the notion of employers using credit scores.

Here is the last part of that exchange:

From: Judson, George
Sent: Friday, May 22, 2009 12:45 PM
To: greg@creditscoring.com
Subject: Marketplace

Mr. Fisher,

Regarding Janet Babin’s feature on FICO scores on Marketplace Money the weekend of April 17, we have confirmed that employers do not receive credit scores when they obtain credit reports for screening job applicants. We’ll correct this on Marketplace Money and in our archives at www.marketplace.org.

George Judson
Managing editor
Marketplace
[email address]
[telephone number]

From: creditscoring.com [mailto:greg@creditscoring.com]
Sent: Friday, May 22, 2009 11:17 AM
To: Judson, George; Babin, Janet; Robideau, Brad
Cc: Ira Rheingold, National Association of Consumer Advocates; Burt Flickinger, Strategic Resource Group; Steven Wagner, Experian; TessVigeland; Brad Anderson, Best Buy; ‘Andy Bessette’; Susan Boren, Spencer Stuart; ‘George Buckley’; Gordon Crawford; mail@kpcc; Patrick J. Denzer; Janet M. Dolan; Ian R. Friendly; Kling, Bill; Schmitt, Christina; news@unc.edu; wunc@wunc.org; info@naca.net; Ian Lyngklip; DeVonna Joy; Susan Henson, Experian; Jarrett Crowell
Subject: RE: credit score, employers VIII, exactly V

For the feature, who was your source for the information regarding credit score use by employers?

Who confirmed that employers do not receive credit scores?

From: Judson, George
Sent: Friday, May 22, 2009 2:46 PM
To: creditscoring.com
Subject: RE: credit score, employers VIII, exactly V

None of your business. Take your obsession elsewhere.

See the 7/25/11 message to APM.

credit score, employers, Minnesota Public Radio

From: Greg Fisher [mailto:greg@creditscoring.com]
Sent: Monday, July 25, 2011 9:50 PM
To: Jessica Mador, reporter, Minnesota Public Radio
Subject: credit score, employers, Minnesota Public Radio

See this message and your reply at https://blog.creditscoring.com/?p=2343.

You reported, “Credit scores are often used as a factor to approve credit, insurance and some rental and employment opportunities.”

Who is your source regarding credit score use by employers?

—
Greg Fisher
The Credit Scoring Site
creditscoring.com
PO Box 342
Dayton, Ohio 45409-0342

Fox corrects, then repeats, credit score employers myth

In November, Adam Levin, chairman and co-founder of Credit.com and former director of the New Jersey Division of Consumer Affairs appeared on something from the Fox Business Network called FBN Live.  

Levin said, “Employers are not allowed–nor do they–look at credit scores; that’s an urban myth.” (37:00)

Interviewer Tracy Byrnes responds: “Wait! Can you say that again? So, in theory, your employer is not supposed to look at your score?”

Levin explains that credit reports for employment purposes do not even contain credit scores.

However, the title of the web page for the video is “Don’t Let Your Credit Score Hurt Your Job Hunt – We take a look at how a bad credit score could hurt your job prospects.”

And, last month, in a conversation about about money and human emotion, the Fox Business host had this exchange with an author and “CERTIFIED FINANCIAL PLANNER™ professional” who has a “passion for helping people”* (1:45):

GUEST:  It’s a stressful time.

HOST: Well, especially because, now, you know, you go for a new job and your new employer’s looking at your credit score. 

GUEST: Yes!

HOST:  It’s everywhere.

GUEST:  Agh! 

HOST: Right?

GUEST: It’s true.  It’s true.

The web page for that video is titled, “Emotions Behind Our Financial Decisions – Financial advisor and author Karen Lee offers insight into understanding the emotions behind our financial decisions.”

But another unfortunate action brings the circus full-circle.  Even Credit.com states: “Your credit score is a determining factor in your mortgage and auto loan terms, credit card rates and insurance premiums. Some employers and landlords also take your score into consideration.”

*see all the clichés: “passion,” “helping people,” etc.

credit score, employers, Forbes, 2011-07-20

From: Greg Fisher [mailto:greg@creditscoring.com]
Sent: Wednesday, July 20, 2011 11:43 PM
To: Heather Struck, reporter, Forbes; Heather Struck, reporter, Forbes
Subject: credit score, employers, Forbes, 2011-07-20

See this message and your response at https://blog.creditscoring.com/?p=2274, https://blog.creditscoring.com/?cat=134 and https://blog.creditscoring.com/?tag=forbes.

You wrote

But one’s creditworthiness, as reflected in a FICO score or a credit report, now affects a lot more than the ability to borrow money or buy something on credit. It can affect whether you get a job, what you pay for insurance, and even how your personal relationships work out.

and

Employment consultants say a troubling credit score may cause hiring officers to more closely question an applicant. Vic Tanon, chief simplicity officer at Emplicity, an organization that consults in hiring practices across the U.S., says a bad credit rating is likely to be more of a factor in certain industries like financial services.

Who is your source regarding credit score use by employers?

—
Greg Fisher
The Credit Scoring Site
creditscoring.com
PO Box 342
Dayton, Ohio  45409-0342

credit score, employers, McClatchy Co., Sacramento Bee

From: Greg Fisher [mailto:greg@creditscoring.com]
Sent: Sunday, July 17, 2011 9:12 PM
To: Claudia Buck, personal finance writer/columnist, Sacramento Bee, McClatchy Co.
Cc: Peter Tira, communications director, The McClatchy Company
Subject: credit score, employers, McClatchy Co., Sacramento Bee

See this message and your response at https://blog.creditscoring.com/?cat=134, https://blog.creditscoring.com/?p=2266, https://blog.creditscoring.com/?tag=mcclatchy, http://www.creditscoring.com/influence/media/newspapers/mcclatchy and [and also see] http://www.newsobserver.com/2010/07/04/563407/credit-score-crusader.html.

You wrote: “However, if you’re shopping for a single type of loan in a short period of time – say to finance a home or auto, those multiple credit inquiries are treated as a single request and won’t count against you. Same for an employer requesting your credit score for a job application.”

Who is your source regarding credit score use by employers?

—
Greg Fisher
The Credit Scoring Site
creditscoring.com
PO Box 342
Dayton, Ohio  45409-0342

 

UPDATE, 7/19/2011

From: Buck, Claudia – Sacramento
Sent: Monday, July 18, 2011 3:56 PM
To: ‘greg@creditscoring.com’
Cc: Tira, Peter – McClatchy Corporate
Subject: RE: credit score, employers, McClatchy Co., Sacramento Bee

Greg….Thanks for writing. The paragraph you’re referring to was based on my interview with Bradley Graham of FICO.com. He was referencing job applicants who give permission to an employer to pull their credit report or credit score. My understanding is that an employer can request a credit report automatically but if a job applicant gives permission, the employer can request a credit score, as well.

Does that clarify it?

Claudia

Claudia Buck
Assistant Business Editor
Sacramento Bee
email: [xxxx]
phone: [xxxx]

From: Greg Fisher [mailto:greg@creditscoring.com]
Sent: Tuesday, July 19, 2011 3:03 PM
To: Claudia Buck, personal finance writer/columnist, Sacramento Bee, McClatchy Co.
Cc: Peter Tira, communications director, The McClatchy Company; Elaine Lintecum, treasurer, McClatchy Co.; Scott Lebar, senior editor, McClatchy Co., Sacramento Bee; John Ulzheimer, The Ulzheimer Group; Craig Watts, Fair Isaac
Subject: RE: credit score, employers, McClatchy Co., Sacramento Bee, FICO claim

It only clarifies who your source is and what he claims.  The truth is another matter.

A Fair Isaac video stated:  “In addition to credit decisions, your FICO credit score may be used to determine if a landlord will rent to you, or even if an employer will hire you. That’s right. That little three-digit number between three-hundred and eight-fifty impacts your financial life in a lot of ways.”

Asked for its source for that information, the company replied, “The mention you cited from the myFICO video clip was based on anecdotal information gleaned from public sources such as published articles.”

That means that the credit score company gets its information from the media, and gives it back to the media as the truth.  You won’t find that video on Fair Isaac’s website any longer.  However, more specific information is available. 

For instance, one of your McClatchy colleagues resolved the conflicting information by contacting the consumer reporting industry trade association who told her that the consumer reporting agencies do not sell credit scores to companies for pre-employment screening.  She made a correction.  Recently, USA Today and the Baltimore Sun made a similar corrections.

Credit expert John Ulzheimer, who is quoted in your article, calls the notion the number one myth about credit scores (starts at 2:40).

Most importantly, however, the agencies, themselves, state that they do not sell credit scores to employers.

Will you make a correction?

—
Greg Fisher
The Credit Scoring Site
creditscoring.com
PO Box 342
Dayton, Ohio  45409-0342

credit score, employers, Washington Post

From: Greg Fisher [mailto:greg@creditscoring.com]
Sent: Sunday, July 17, 2011 9:06 AM
To: Andrew Alexander, ombudsman, reader representative, Washington Post; Andrew Alexander, ombudsman, reader representative, Washington Post
Subject: credit score, employers, Washington Post

See this message and your response at https://blog.creditscoring.com/?p=2263.  

You published, “A credit score can determine whether or not you get a job or what interest rate your auto loan will come with, for example.”

Who is your source regarding credit score use by employers?

—
Greg Fisher
The Credit Scoring Site
creditscoring.com
PO Box 342
Dayton, Ohio  45409-0342

credit score, employers, CBS MoneyWatch.com

See the video that includes clips of a senator, a congressman, a governor and The Early Show on CBS.

From: Greg Fisher [mailto:greg@creditscoring.com]
Sent: Thursday, July 14, 2011 8:47 AM
To: Dan Kadlec, contributor, CBS MoneyWatch
Subject: credit score, employers, CBS MoneyWatch.com

See this message and your response at https://blog.creditscoring.com/?p=2258, https://blog.creditscoring.com/?tag=cbs and  https://blog.creditscoring.com/?tag=nationalamusements.

You wrote, “In the real world you’ll want and need a potential employer or landlord or auto dealer who runs a credit check on you to find a good score that testifies to your dependability.”

Who is your source regarding credit score use by employers?

—
Greg Fisher
The Credit Scoring Site
creditscoring.com
PO Box 342
Dayton, Ohio  45409-0342

Experian’s Twitter foray: Jobs and credit scores

@Experian_US (John Peace [alt 8/14/12], the sheriff of Nottingham) wants to insert himself into the conversation, but does not respond.

His shiny, new, search engine-friendly, $200-million CreditReport.com says, “Not all employers pull an applicant’s credit history or place tremendous weight on it, but individuals working in government or financial roles can expect their credit scores to be a factor.”

However, Experian also says, “No, Experian’s business policy prevents the inclusion of credit scores with an employment report, at Experian called Employment Insight.”

So, apparently, somebody related to government is beaking the rules.

Follow the one-way conversation.

Countdown to when Experian removes statement about employers using scores III

Tweet, tweet.

Experian says, “Credit reports are not scored when used for employment purposes; they are typically reviewed as part of the character evaluation as well as to verify identity and application information.”

CreditReport.com says, “More Employers Check Applicants’ Credit Scores.”

Experian owns CreditReport.com.