Employment Checks Common for Some Credit Card Companies
Guest: Polonius
SENIOR MEMBER (Member for 2 yrs.+)
Post subject: Employment Checks Common for Some Credit Card Companies
Posted: Thu Jan 18, 2007 12:54 pm
Quote:
It seems it will be considered but on another level. Just the way it says your address wil not considered. Place a flagged zip code on your application and many questions will arise on the lender's side.
Quote:
one item that's never ever considered by lenders is net worth.
Yes, credit scoring models crunch numbers to arrive at another number--and they ONLY crunch the numbers that are on your credit reports, because those are the ONLY numbers in the databases from which they pull your information. BUT, more than the credit score is considered AT TIMES when deciding to offer credit.
Basically, you apply for credit and if your credit score is high enough and there are no "red flags" of some sort, you get the credit card--but then someone or something somewhere decides what your credit limit is. Bikshu described the process here some months ago for BofA/MBNA. For some applications, the computer is able to make all the decisions. For others, the computer kicks it out for a manual review by a credit analyst.
Now, that credit analyst can use judgment. He/She MAY consider anything on your credit application, not just what the credit bureaus keep in their data banks. Zip codes? Sure--give a zip code for your residence which the Census Bureau data bank says is mostly inhabited by the poor and unemployed and the analyst may wonder at your claimed hundreds of thousands of dollars of income each year. Give a zip code for your residence where houses typically sell for over a million, and that's not likely to be questioned.
It's just like age. We're told our age isn't considered in a credit score. Well, sure. BUT we're also told that the optimum age of our credit history is around 30 years. Well, doesn't that consider age indirectly? Geez.
_________________
Polonius
"Neither a borrower, nor a lender be; For loan oft loses both itself and friend"
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: NightStar
Board Monitor/ Administrator
Posted: Thu Jan 18, 2007 2:40 pm
Employment listings on the credit report are not a required field, it only gets on there if a creditor pulling your credit report adds it to an optional field.
The creditor can individually call your employer to ask for start date, position and income. I use to do it all of the time on Mortgage Loans.
Not all but some credit card companies do employment checks. I know Pulaski Bank to be one of them.
I have had cards with Citi Bank, Capital One, First USA, and US Bank - none of them check my employment.
_________________
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Pammila Phillis
Board Monitor
http://www.CardRatings.com
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Guest: Verne
SENIOR MEMBER (Member for 2 yrs.+)
Posted: Thu Jan 18, 2007 2:54 pm
I think Chase looked a little deeper when I was with them in the mid to late 90's. I used to pay my psychiatrist bills with my Chase card (I needed a psychiatrist to deal with my Chase bills) and I received a change in terms which included a higher interest rate. The reason they gave was "length of residence" being too short which had actually increased from 1 year to 3 years since I first got the card. This was before I went into deep debt, my utilization and scores were in good shape and I had no derogs. (never have)
I had often joked with the psych office receptionist about paying the "*** Psychiatric Clinic" with a credit card and wondering whether they would notice. I think they did.
Or that could be my paranoia talking.
Verne
_________________
Any agreement that can be changed at any time, for any reason, is no agreement at all.
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Guest: mouse
SENIOR MEMBER (Member for 2 yrs.+)
Posted: Thu Jan 18, 2007 7:39 pm
NightStar wrote:
Employment listings on the credit report are not a required field, it only gets on there if a creditor pulling your credit report adds it to an optional field.
The creditor can individually call your employer to ask for start date, position and income. I use to do it all of the time on Mortgage Loans.
Not all but some credit card companies do employment checks. I know Pulaski Bank to be one of them.
I have had cards with Citi Bank, Capital One, First USA, and US Bank - none of them check my employment.
To the best of my knowledge...NOBODY EVER CALLED ON ME IN 30+ YEARS
All they would get is that I work there...
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: NightStar
Board Monitor/ Administrator
Posted: Fri Jan 19, 2007 11:39 am
When you apply for a mortgage loan, you sign a waiver that allows the bank to contact your creditor and ask for position, income and start date. All mortgage loans would require no less. The employer would have to comply after they received by fax or mail a copy of the waiver you signed to the bank.
I think also if you ask for a high credit limit increase that might stir up a credit card company to ask for employment verification. I have heard of that happening.
_________________
Best Regards,
Pammila Phillis
Board Monitor
http://www.CardRatings.com
20K+ Credit Card Reviews
Sign up for our free monthly e-mail newsletter!
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
SENIOR MEMBER (Member for 2 yrs.+)
Post subject: Employment Checks Common for Some Credit Card Companies
Posted: Thu Jan 18, 2007 12:54 pm
Quote:
It seems it will be considered but on another level. Just the way it says your address wil not considered. Place a flagged zip code on your application and many questions will arise on the lender's side.
Quote:
one item that's never ever considered by lenders is net worth.
Yes, credit scoring models crunch numbers to arrive at another number--and they ONLY crunch the numbers that are on your credit reports, because those are the ONLY numbers in the databases from which they pull your information. BUT, more than the credit score is considered AT TIMES when deciding to offer credit.
Basically, you apply for credit and if your credit score is high enough and there are no "red flags" of some sort, you get the credit card--but then someone or something somewhere decides what your credit limit is. Bikshu described the process here some months ago for BofA/MBNA. For some applications, the computer is able to make all the decisions. For others, the computer kicks it out for a manual review by a credit analyst.
Now, that credit analyst can use judgment. He/She MAY consider anything on your credit application, not just what the credit bureaus keep in their data banks. Zip codes? Sure--give a zip code for your residence which the Census Bureau data bank says is mostly inhabited by the poor and unemployed and the analyst may wonder at your claimed hundreds of thousands of dollars of income each year. Give a zip code for your residence where houses typically sell for over a million, and that's not likely to be questioned.
It's just like age. We're told our age isn't considered in a credit score. Well, sure. BUT we're also told that the optimum age of our credit history is around 30 years. Well, doesn't that consider age indirectly? Geez.
_________________
Polonius
"Neither a borrower, nor a lender be; For loan oft loses both itself and friend"
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: NightStar
Board Monitor/ Administrator
Posted: Thu Jan 18, 2007 2:40 pm
Employment listings on the credit report are not a required field, it only gets on there if a creditor pulling your credit report adds it to an optional field.
The creditor can individually call your employer to ask for start date, position and income. I use to do it all of the time on Mortgage Loans.
Not all but some credit card companies do employment checks. I know Pulaski Bank to be one of them.
I have had cards with Citi Bank, Capital One, First USA, and US Bank - none of them check my employment.
_________________
Best Regards,
Pammila Phillis
Board Monitor
http://www.CardRatings.com
20K+ Credit Card Reviews
Sign up for our free monthly e-mail newsletter!
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: Verne
SENIOR MEMBER (Member for 2 yrs.+)
Posted: Thu Jan 18, 2007 2:54 pm
I think Chase looked a little deeper when I was with them in the mid to late 90's. I used to pay my psychiatrist bills with my Chase card (I needed a psychiatrist to deal with my Chase bills) and I received a change in terms which included a higher interest rate. The reason they gave was "length of residence" being too short which had actually increased from 1 year to 3 years since I first got the card. This was before I went into deep debt, my utilization and scores were in good shape and I had no derogs. (never have)
I had often joked with the psych office receptionist about paying the "*** Psychiatric Clinic" with a credit card and wondering whether they would notice. I think they did.
Or that could be my paranoia talking.
Verne
_________________
Any agreement that can be changed at any time, for any reason, is no agreement at all.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: mouse
SENIOR MEMBER (Member for 2 yrs.+)
Posted: Thu Jan 18, 2007 7:39 pm
NightStar wrote:
Employment listings on the credit report are not a required field, it only gets on there if a creditor pulling your credit report adds it to an optional field.
The creditor can individually call your employer to ask for start date, position and income. I use to do it all of the time on Mortgage Loans.
Not all but some credit card companies do employment checks. I know Pulaski Bank to be one of them.
I have had cards with Citi Bank, Capital One, First USA, and US Bank - none of them check my employment.
To the best of my knowledge...NOBODY EVER CALLED ON ME IN 30+ YEARS
All they would get is that I work there...
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: NightStar
Board Monitor/ Administrator
Posted: Fri Jan 19, 2007 11:39 am
When you apply for a mortgage loan, you sign a waiver that allows the bank to contact your creditor and ask for position, income and start date. All mortgage loans would require no less. The employer would have to comply after they received by fax or mail a copy of the waiver you signed to the bank.
I think also if you ask for a high credit limit increase that might stir up a credit card company to ask for employment verification. I have heard of that happening.
_________________
Best Regards,
Pammila Phillis
Board Monitor
http://www.CardRatings.com
20K+ Credit Card Reviews
Sign up for our free monthly e-mail newsletter!
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
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