I have read this board off and on to educate myself about credit. I don't understand why credit reports are used for reasons other than granting credit. Your credit record is your way of life. Some of us have perfect credit, others have been young and made mistakes while others have been involved in relationships gone bad and/or divorce, negatively affecting their credit. For people with bad credit, it just seems like their quality life is bad. I mean, who cares if you can't get credit cards or a cell phone. But, with bad credit, you can't just live anywhere - apartments pull your credit. You can't get renter's insurance because the insurance companies think your bad credit will make you file fraudulent claims. You can't get a better job, because potential employers will pull your credit and bad credit to them I guess means a bad employee and you can't even get a checking/savings account at a bank. By the way, why do banks pull your credit to open up a checking/savings account? Utility companies check your credit, then charge you deposits if your credit is bad. Most often, people don't have a lot of money when they move to pay for them. What are you supposed to do? Sit in the dark? Send smoke signals? I don't get it. I am annoyed with some of the reasons companies pull your credit. Oh, my question: Is it true that inquiries don't count against your credit score after six months even though they will continue to appear on your credit report for 2 years?
RE: don't agree & 1 questi The scary thing (or one of many scary things) is that a credit reporting agency can report negative information about you forever (and that's no typo) as long as the report is used to screen you for a job paying over $20,000 (again no typo) per year. I came across that this morning on creditinfocenter.com. Now, the agencies don't HAVE to report negative information forever, but I have a suspicion they have chosen to do so. The reason? Too many evil and destructive people have reached positions of power at the agencies. In every generation, there are those individuals who volunteer to burn people at the stake, or to transport slaves, or to run death camps. In our generation, many such individuals work for credit reporting agencies. Regarding your question, inquiries may be factored into your credit score as long as they remain on your credit report, that is, for two years. Whoever designs the scoring model for a particular creditor gets to decide how long they are relevant. But my understanding is that most models count them for only six months, and most of the others for a year.
RE: don't agree & 1 questi Where in the FCRA does it state 20,000$? I have read the entire thing, and doesn't mention $20,000. Please if you are going to post information, please use the CORRECT information. The ONLY reference to employment (and salary) is: § 605. Requirements relating to information contained in consumer reports [15 U.S.C. § 1681c] (3) the employment of any individual at an annual salary which equals, or which may reasonably be expected to equal $75,000, or more. http://www.ftc.gov/os/statutes/fcra.htm
RE: don't agree & 1 questi Russ, Rich guy obtained his information from the old FCRA. It states, 1631c(b)(3) The employment of any individual at an annual salary which equals, or which may reasonably be expected to equal $20,000 or more. The revised 1999 version states $75,000. It is an honest mistake.
RE: don't agree & 1 questi I received a notice recently that my homeowners insurance is increasing from $178 to $220, the decision being "based in part on a consumer credit report" from Transunion. I guess that having difficulty paying for surgery 7 years ago means that. . .what? Someone's more likely to trip on my sidewalk and sue? So, yeah, I'm annoyed, too, by where a credit report can crop up to mess with you. On the other hand, I was pretty diligent for a couple of years and was able to qualify for a mortgage two years ago, and am able to scoff at insulting credit card offers, and laugh out loud at "Aspire" when they call.
RE: don't agree & 1 questi If I am a landlord or a utility, I would like to know if someone is going to pay their bills when entering into a monthly payment contract with them. For a checking or savings account, I thought that a credit report was more for ID than actual credit info. Checking a credit report for a job doesn't make sense unless the salary is pretty high (min is $75k in FCRA I think). If someone is going to manage some or most of the company's finances and they can't manage their own then that is a bad sign.
RE: don't agree & 1 questi I don't agree. Ususally, most people pay for life's basics first (shelter, heat, food) before the other stuff. When I moved to Washington DC recently, the bank checked my credit despite a wallet full of identification. I asked her why, and she said the bank only opens accounts for those with "good credit." She then proceeded to offer me a VISA based on my report, so I know it was a hard inquiry. The phone company pulled my credit as well over the phone to determine whether or not to charge me a deposit. She asked me to verify one item on my report, so I know they pulled it. Another inquiry. My insurance changed (because I moved). I know State Farm pulled my credit so they could underwrite a homeowner's policy (yet another inqiry). I moved here for a job, and I know my credit report was also pulled (a fourth inquiry). I am annoyed by this practice because I know these inquiries adversely affects my credit. When you say how could companies expect employees to manage their finanaces when they can't manage personal finances. I couldn't disagree with you more. I am not in a finanacial management position - why they checked my credit is beyond me. Also, companies don't get seriously injured, sick, divorced, etc. like people do. People have crap that happens that is beyond their control which affects their credit. That's the point I was trying to make. Credit reports should be pulled for the purpose of granting credit only.
RE: don't agree & 1 questi Actually, at one time in my life I couldn't agree with you more. However, I work for a major telecommunications company & I see people EVERYDAY that skip out and leave their accounts unpaid. Many times, the only way we know this is when another person is moving into the premises & needs new service. I had a person call today who wanted to open a new account at a different location & leave service working at her current location. Normally that would be no problem, but her current account showed she owed over $2,400 with only $200 past due. This means she ran up a phone bill in excess of $2,200 within 1 billing cycle. That is a lot of money & if you multiply one fourth of that by thousands of accounts, that is a huge loss to any company. In essence, even utility companies ARE extending credit to all of us as we are able to receive products & services before the bill is due. I know credit checks are frustrating and insulting to many people (mainly good people who pay their bills), but there is no other way to know what type of person is using your services. I am not trying to be the "ultimate defender" of utility companies, but I just wanted to give everyone an inside view of why deposits are requested. If it were me, I would suggest not giving them your social security # when applying for service. They cannot require this! It will result in paying a deposit (if you can afford this), but if your payments are made on time & you have no disconnecting of service, you will receive your deposit back after 12 months with interest. This will save you an inquiry on your credit report. Hope this is of some help.
RE: don't agree & 1 questi Gee, what's worse, paying a deposit or getting an inquiry? I don't know (I am not sure what they charge for deposits since I've never had to pay one). I guess since I moved for a new job, had to get phone and electric service, a new bank account and insurance in this state, that equals to at least 5 inquiries. I've read that so many times all these inquiries are bad for your credit. I want a new VISA or MC to transfer balances from high interest credit cards, and I'm afraid I'll be turned down for too many recent inquiries.
RE: don't agree & 1 questi Neither one is good. Deposits can be as low as $25 to approx $300. It is up to each (phone) company and is governed by to public utilities commission of each state. Texas has the lowest deposit rates. The average deposit amounts I see are approx. $75-$200. It's frustrating because it is too much for people you feel in your gut are excellent customers, but it is usually not enough for people who are bad risks. The deposit amount & the credit check is like a catch 22! :-( The positive point is that you will receive the deposit back with interest in 12 months if payments are timely & the service is not disconnected. Sometimes customers receive more than a bank will give them with a regular savings account.
