Right in Equifax’s hometown, in an interview piece on chairman and CEO Richard F. “Rick” Smith, a writer for the Atlanta Journal-Constitution asks, “Is there too much paranoia about credit scores, which can affect everything from loan and job applications to insurance premiums?”
Apparently, he missed the story about Equifax/employers/scores, so the irony of the notion of paranoia is painfully accentuated.
‘Dude’s on vacation.
To: Matt
From: Greg Fisher, creditscoring.com
Date: April 29, 2010
Subject: credit score, employers, Des Moines Register
You said: “Know your credit score. Many employers today take your credit score into consideration when determining if you are the right person for the job.” However, the consumer reporting agencies do not provide credit scores for employment screening.
You are at the top of the news searches this morning. The story about people saying employers use credit scores is getting boring. But, identifying who provided that information: Now that’s interesting.
Who is your source regarding credit score use by employers?
From: Greg Fisher
Sent: Tuesday, March 30, 2010 10:51 AM
To: julia.gordon@responsiblending.org
cc: drshow@wamu.org
Subject: credit score, employers, Center for Responsible Lending
In response to Diane Rehm’s question about credit score use in pre-employment screening, you did not disagree with the premise: Employers use credit scores.
What evidence suggests that employers use credit scores?
What is the name of an employer who uses credit scores?
(:47:07)
DIANE REHM: We have heard from various callers and e-mailers that if you walk away from your home– if your credit score is bad-bad-bad– that your next potential employer may look at that score– may look at that record– and that that record could be held against you. Julia?
JULIA GORDON: More and more employers are doing credit checks before they hire somebody. So, ruining your credit score can have all sorts of anticipated and unanticipated consequences, which is why, again, I would really encourage people: If your credit is good, and you have the opportunity not to become delinquent on a loan, please don’t.
Credit Karma CEO Ken Lin says that if you don’t like your credit history, just make one up.
Yesterday, the ABC News NOW interview subject said to beg your lender to change its report to the consumer reporting agencies about you to something more positive. Lin thinks pestering the bank helps, too. “You might want to try multiple times if you don’t get a good result the first time,” he said.
Anchor Tanya Rivero plays right along as Lin says, “It’s been known to happen where you can get a lender to remove a delinquency particularly if you were traveling or some other occurence happens.”
Lin’s malarkey about lying is known elswhere as the Goodwill Adjustment, and is a fashionable notion in pop media circles.
(This vidcap that makes him look like a bozo is a coincidence.)
WBIR TV-10, Knoxville asks, “Did you know that many potential employers check your credit score?”
And, the people at the East Tennessee Gannett television station want you to tell them what you think. Their website says, “Selected comments will air on Wednesday’s 10 News at Five.”
Here is one comment that may or may not make it on the air:
GregFisher wrote:
Consumer reporting agency Equifax stated, “We do not knowingly provide scores for pre employment screening.”
Experian stated, “Experian’s business policy prevents the inclusion of credit scores with an employment report, at Experian called Employment Insight.”
And, in Oregon, a TransUnion official testified, “There’s no such thing as a credit score in employment.”
Who is your source regarding credit score use by employers?
It didn’t make it.
What did make it was one that said, “A low credit score does not mean someone will not be a valuable or trustworthy employee.”
That’s another one to add to the video compilation.
Exploding Dave Ramsey’s Zero Credit Score Myth on Ramsey’s Home Turf
Following the Credit CARD Act becoming effective, Credit.com’s John Ulzheimer appeared on the FOX Business Network (“the only business network in true high definition”) this morning in a segment called “Tips for Boosting Your Credit Score.”
Cross-promoting “financial expert” blowhard Dave Ramsey, anchor Brian Sullivan referred to his colleague saying, snarkily, “I am sure you are very familiar with a guy named Dave Ramsey, right?” (3:00)
On the other hand, his tone, dripping with sarcasm, could have been evidence of utter disdain for Ramsey’s schtick.
Unimpressed, Ulzheimer said: “I’m familiar with Dave. Yes.”
Sullivan repeats the mantra that Ramsey’s score is “famously zero” and qualifies it with “or low” (and fails to mention that it could be nonexistent).
The guest chuckles and says that that is incorrect because a person cannot have a score of zero because the scale is 300 to 850.
The host interrupted the guest when he made that point. Ulzheimer politely allowed him to speak, then finished the interview.
Let’s hope FBN has Ulzheimer back on the air even though he flogged the interviewer and the crazy zero claim. Outside of the FICO company itself (and even that is questionable), nobody knows more about– and can better explain– credit scores. Get his book if you don’t believe it.
So, what is so bad about Ramsey saying that his FICO credit score is zero? Imagine a guy who hears that his score is 425 and thinks he’s halfway to 850 when, in reality, his score is in the lowest 2%. Perhaps it is the fault of the FICO company with its arcane scale (instead of something logical like 0 to 1000), but it is what it is.
Mr. Ramsey, tell the truth. What are your scores, really?
The internet: A place where almost anybody can write almost any nonsense.
Here’s a good example. CNM News Network’s piece on credit scores states, “Currently, employers can pull a job applicant’s credit report, but don’t have access to the actual score.”
However, the title is “Foreclosures and Job Hunting Don’t Mix as Employers Check Credit Scores.”
Watch as the publisher reacts to a comment on its page:
Your article says that employers don’t have access to credit scores, but your title screams that employers check them.
What gives? Who told you that employers check credit scores?
Greg Fisher
Continue reading Into the Audience – Credit scores and employers, CNM
Recently, a Reuters blogger said that the CEO of credit score company FICO told him that employers use credit scores.
But despite FICO’s claim and the rest of the hoopla, only two employers have admitted it.
A Virginia television station obtained video footage of a credit union representative saying “Being a financial institution we have a set level its yes or no. If the credit score is below a certain number, then there’s nothing we can do about it.”
Virginia
In Texas, a television reporter interviews a bank senior vice president who said, “If someone is going to be handling your money and their credit score reflects irresponsibility with money— with their own money– then there may be some concern that they might be irresponsible with your funds, too.”
Fun feedback loop
Selling its score, FICO cheerfully says that employers use credit scores (occurs at :47 in the video).
Consumer reporting agencies claim that they do not sell credit scores to employers.
Ben Stein says that employers use credit scores.
Felix writes about Ben Stein.
creditscoring.com writes about Felix writing about Ben Stein.
creditscoring.com blog comments trackback to Felix’s blog (July 28 comment: “simmers“).
Felix writes that FICO told him that employers use credit scores.
creditscoring.com writes about Felix writing about FICO telling Felix that employers using credit scores (this page).
From: Greg Fisher [mailto:greg@creditscoring.com]
Sent: Friday, February 05, 2010 2:05 PM
To: spytlinski@kxrm.com
Subject: credit score, employers, KXRM-TV Fox 21, Colorado SpringsYou wrote, “Your credit score can help or hurt you every time you apply for a loan, buy car insurance, Continue reading credit score, employers, KXRM-TV Fox 21, Colorado Springs