Money Tips: Employment History a Factor in Acquiring Credit Card Account?

Posted On: January 17, 2007

Guest: angelo21
Post subject: Employment History a Factor in Acquiring Credit Card Account?
Posted: Wed Jan 17, 2007 12:10 pm

hdporter wrote:
Quote:
If your between jobs you need to consider how it will effect your FICO. Employment history is a key variable in the FICO equation.

Not correct. FICO looks strictly at your credit history, not employment. Creditors may factor your employment history as well (plus salary, etc.) in making their credit decisions.

- Harry

That’s not what I have learned. Your history is about 1/3 of the equation. I may of overstated the importance of employment by saying “key” but it will be considered. Your score can vary from CB to CB because of the weight given to certain elements. Nevertheless, it will be factored in.

Guest: fenster
Credit Expert (100+ Posts)
Posted: Wed Jan 17, 2007 1:15 pm

angelo21 wrote:

That’s not what I have learned. Your history is about 1/3 of the equation. I may of overstated the importance of employment by saying “key” but it will be considered. Your score can vary from CB to CB because of the weight given to certain elements. Nevertheless, it will be factored in.

It all depends what you mean by “employment”, if you mean stated employment, you’re only partially correct, yet if you mean verified employment, you’re completely wrong. Why are you wrong? Cuz you’re not gonna tell this intelligent board the bank “considered” and verified your employment in less than 60 seconds then flashed “you’re approved” online, are ya?

In fact, let me rephrase and say you’re wrong on all counts in your post, even with my above statement of qualification, and let me tell you why:

have you noticed many new credit card applications lately? The telephone number for one’s place of employment is listed as optional, the banks ceased to care. What is important to the bank, however, is your stated income in the App. But even your stated income is unverifiable telephonically and the banks know it. Most legitimate employers refuse to give an income number over the phone even to the US president.

Yet the banks aren’t worried, why? Because they can discern your income from your credit profile, listed accounts and spending habits. For example, if you stated an income in the 6 figures and you’re financing a $300 1979 Vega, the card issuer will be on to you.

So as far as card-issuing banks are concerned the cardinal and monumental criterion which shapes their decision to issue is your credit profile and score. That you’re employed and generating income is factored in and assumed before you even apply, unless you’re applying as a student. In fact, the banks pre-qualify the latter by instructing you before you apply “if you earn less than X, don’t apply.”
_________________
beware of everything

Guest: angelo21
Posted: Wed Jan 17, 2007 1:29 pm

I hear you and respect your opinion. I still differ.

Although what your saying make absolute sense, employment is a factor. If your showing frequent changes, etc. you will be verified unless you have a strong history.

Guest: hdporter
Credit Expert (100+ Posts)
Posted: Wed Jan 17, 2007 2:14 pm

Your statement concerned FICO score strictly (and not evaluation of credit worthiness by a creditor).

Per FICO
http://www.fico.org/ScoreBreakDown/LengthOfCreditHistory.aspx
Quote:

Your score takes into account:

* How long your credit accounts have been established, in general. The score considers the age of your oldest account, the age of your newest account and an average age of all your accounts.
* How long specific credit accounts have been established.
* How long it has been since you used certain accounts.

WHAT FICO SCORES IGNORE

FICO scores consider a wide range of information on your credit report. However, they do not consider:

* Your race, color, religion, national origin, sex and marital status. US law prohibits credit scoring from considering these facts, as well as any receipt of public assistance, or the exercise of any consumer right under the Consumer Credit Protection Act.
* Your age. Other types of scores may consider your age, but FICO scores don’t.
* Your salary, occupation, title, employer, date employed or employment history. Lenders may consider this information, however.
* Where you live.
* Any interest rate being charged on a particular credit card or other account.
* Any items reported as child/family support obligations or rental agreements.
* Certain types of inquiries (requests for your credit report or score). The score does not count any inquiries you initiate, any requests from employers, or any requests lenders make without your knowledge. For details, see How the FICO Score Counts Inquiries.
* Any information not found in your credit report.
* Any information that is not proven to be predictive of future credit performance.