Posted by Heather Michaud on 12/8/09 4:19pm
Msg #313536

Why a credit check?

I understand why some companies want to do a backround check but I don't understand why a credit score is anyone's business.
I know many people who are great business people, great workers who have a bankruptcy, foreclosure or something out of their control, especially in this economy.

Reply by Yoli/CA on 12/8/09 4:27pm
Msg #313540

Who's requesting your credit score? n/m

Reply by Glenn Strickler on 12/8/09 5:43pm
Msg #313549

Never been asked. Who are "some companies"? n/m

Reply by Marian_in_CA on 12/8/09 6:54pm
Msg #313557

Who is asking for that??

I know that some companies will run credit as part of a "background" check.... but I've never known any that want to pull credit records for notary work. That bothers me.

A "background check" can mean many different things.

Reply by MW/VA on 12/8/09 8:05pm
Msg #313564

Credit checks are required for employment. We are not employees. We are extending THEM credit--we need their credit scores more than they need ours!!!!!

Reply by desktopfull on 12/8/09 8:21pm
Msg #313570

I would refuse, since we are the ones extending credit maybe

they should furnish us with the credit reports.

Reply by gcn3 on 12/8/09 8:39pm
Msg #313573

Intergrity signing asked me to do a credit check

I said no. I found it disturbing that no one on this board had worked for the company. When I posed this credit check question last September I was called a troll.

Reply by Susan Fischer on 12/8/09 8:37pm
Msg #313572

I love this question, and agree with others that it is *we*

who are extending the credit in this transaction.

You just identified my #1 New Year Resolution:

1. Establish procedure to run credit checks on all existing and new accounts. Automatic collections after 90 days. Dunn & Bradstreet is a good place to start.

Thanks, Heather! Stay warm and safe.

Reply by Joan_OH on 12/9/09 8:11am
Msg #313605

Are you handling funds?

Some days I handle well over $100K in funds doing purchases. I guess, if the title company wanted to do a credit check on me, it would be understandable to me. These days, you can't even apply for auto insurance without a credit check. Your credit history says a lot about you.

Saying that, I would never submit it to just anybody. However, I do have a couple of regular clients that should they request it, I would comply.

Joan-OH

Reply by PAW on 12/9/09 8:33am
Msg #313614

Credit Reporting - Fact or Fiction?

>>> Your credit history says a lot about you. <<<

Don't mean to hijack this thread but ...

I agree with the statement that your credit history does say a lot about you. However, your FICO may be a pack of lies. In today's credit market, people or paying down their debts. Credit card companies are lowering the 'available credit' line as they raise the interest rates, making your credit score lower. To compensate for the higher rates, the debtor is paying down their debts, which the credit card companies see and lower the limit. This lowers the FICO considerably especially if a person's limit approaches their outstanding balance.

For example, a person has a $10,000 credit limit with a $1,500 outstanding balance. This means that the debt is 15% of the total credit, with an 85% available credit. Makes for a good FICO score. So now, the borrower pays down $500 of the balance and the credit card company lowers the limit to $2,000. This mean that the debtor now has a $1,000 balance, but a 50% debt (way too high) and a 50% available credit (way too low). And finally, the debtor pays off the debt entirely and closes the credit line, or the bank closes it because of the zero balance. The result is, through no fault of the debtor, a drop in their FICO score by up to 100 points or more.

Loan officers and brokers need to really look at the history and not rely on the FICO as has been done in the past. I submit (my own opinion) that now is the time to revise the way credit is handled and issued, adjusting the benchmark considerably in response to today's credit market.

Reply by SheilaSJCA on 12/9/09 11:24pm
Msg #313805

so true!

I have had this happen to me. I have a credit card I have with a $18,400 limit with a balance of about $7700. The CC company lowered my limit to $8500, really making my card look like it had been charged almost to the max.
Another business credit card I have from Wamu had a $33,000 credit limit. Now it is Chase and I just received a letter last month, saying since I rarely used the card, (this one I pay off anytime I use it). they were dropping my limit to $20,000.
It really is fustrating, because I am doing nothing wrong, yet my credit score is dropping. I have been afraid to look at my credit score. It was great before...

Reply by Yowheelz on 12/9/09 8:58am
Msg #313618

I also refused to sign the contract with Integrety

They wanted me to sign a blanket form that gives them permission to do BGC, Drivers License Check, Credit Check and I don't remember what else but I felt they wanted too much. I was not willing to sign over a blanket permission to run any check they wanted. I felt it was an invasion of privacy. They said it was required by their TC's and lenders and if I didn't sign they would not be able to use me. I had agreed to the usual BGC which also contains a Drivers License history but no more. Havn't heard from them since but I have plenty of other companies that use me so I'm not concerned. Besides in MD we have to have a TPL which requires a surety bond which requires a pretty good credit score. Enough said.