Credit Card Rejection effect on Employment Background Checks

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delrosariojill@ymail.com
 
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Credit Card Rejection effect on Employment Background Checks

Postby delrosariojill@ymail.com » Sun Sep 13, 2015 3:32 pm

Hi,

How would a credit card rejection affect background checks before employment?
I still do not have a credit history so would that have any effects in my job applications?

Thanks


Vermonster
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Re: Credit Card Rejection effect on Employment Background Checks

Postby Vermonster » Sun Sep 13, 2015 7:23 pm

It depends on what they are looking for. It also depends on the place doing the checking. I can not speak for every background check company but the company we use only pulls credit to check addresses, name, and DoB.
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yfan
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Re: Credit Card Rejection effect on Employment Background Checks

Postby yfan » Mon Sep 14, 2015 12:52 am

A background check is not the same as a credit check. If your employer is doing a credit check (don't ask me how I feel about the practice ethically), there is no way to tell for sure from your credit report that you got rejected for a card. Especially if it's an existing creditor (let's say you have the Amex ED but Amex denied you for the Platinum), there's no way to tell even by hard pulls, since the employer doesn't know whether the HP was for a CLI or for a new card or for a different reason. Even if it's a new creditor, there's no way to really tell a rejection. There's no obligation on part of creditors to have to report a new account.

takeshi
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Re: Credit Card Rejection effect on Employment Background Checks

Postby takeshi » Mon Sep 14, 2015 9:48 am

The rejection would have no impact. Impact from applying is due to the hard pull -- not the rejection. If one is approved then AAoA is impacted as well once the account reports.

As stated above though, credit checks and background checks are two entirely different things.

Kevin86475391
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Re: Credit Card Rejection effect on Employment Background Checks

Postby Kevin86475391 » Mon Sep 14, 2015 9:21 pm

Yes exactly. The rejection itself probably won't be an issue - and indeed as yfan pointed out they probably won't even be able to tell for sure that you were rejected - however, the reason you got rejected certainly could be a problem depending on the employer.

It's tough to speculate exactly what a given employer is going to be looking for because of course that'll vary. However, one concern for high security/sensitive type jobs might be your overall debt profile - which would be shown in large part by your utilization on your credit report. The concern is that if you have a lot of debt, you may be in a 'desperate' situation and do something illegal or unethical or you may be vulnerable to blackmail/bribery. Alternatively, a history of delinquent payments and past dues could show irresponsibility and a generally lax attitude. Of course I'm not saying any of this true for you, just that those are possible justifications for an employer to check credit reports in the first place.

Also of course, a good/high score often (but of course not always) simply correlates to a responsible person who would make a good employee. Or indeed, perhaps as Vermonster said they simply want to verify your info. It'll vary a lot based on the employer.

So don't worry about the rejection itself, but maybe do worry about why it happened?

Anyway, best of luck with the job application/hunt :)



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