o
Does Prudential pull credit checks on new employees? The reason I am asking is I applied for a position there and my credit right now is in shreads.
And if I explain to them that all the credit cards are maxed out and not paid from a medical problem will they look over it?
Help please.
Thanks. I drive nothing near a nice car. Its a Hyundai Accent with a big scratch on the side. However I did get a second job at night to start paying off the credit cards but have not yet made payments.
Do some employers look past credit scores if I were to explain all this to them. My credit has no payment on anything in the past year.
Answer
Unfortunately, there is no help. You tell them the truth, and that is all there is you can do. Since Prudential is in the business of finance, then they need to know that those who they hire won't be tempted to embezzle.
I would worry more if you had a Mercedes, or a BMW and maxed out. If you have something of a luxury car that they can see in the parking lot, then I would really worry. Otherwise, relax, and assume that they should still hire you.
Unfortunately, there is no help. You tell them the truth, and that is all there is you can do. Since Prudential is in the business of finance, then they need to know that those who they hire won't be tempted to embezzle.
I would worry more if you had a Mercedes, or a BMW and maxed out. If you have something of a luxury car that they can see in the parking lot, then I would really worry. Otherwise, relax, and assume that they should still hire you.
Credit Questions (4)?
reid r
1. What are the implications of having either a positive or negative credit history? (Somewhat specific)
2. What would constitute a responsible use of credit?
3. What are three (or more) inappropriate uses of credit?
4. When selecting a credit card, what factors should one consider?
Answer
(1) A positive credit history enables you to qualify for more credit, with favorable terms, such as a low APR, low (or no) fees, small payments. A negative credit history would cause you to only qualify for substandard credit, if any at all. With a negative credit history, you're more likely to be required to provide large down payments, pay high interest rates, and also have fees that are not normally used - it is the price you pay for being a high risk investment. To put it simply, when you are buying a car, or even a house, a positive credit history will give you good terms, but a negative credit history can leave you empty-handed - with no car or home financing. Also, when turning utilities on, applying to rent a place, or even when simply getting car insurance or a job (paying more than $20,000/year), your credit might be checked - and deposits might be required for utilities, you might get turned down to rent, or pay more for insurance than anyone else in your situation - or even not get the job you qualify for otherwise.
(2) Responsible use of credit can come in many forms - making payments on time, keeping balances low in proportion to the total credit limits of accounts, regularly paying more than the minimum due each month, not having accounts open but unused, and not having excessive accounts. Also, your total amount of debt should be within a certain ratio of your income - for example, if you make minimum wage, then debts in excess of $20,000 would be considered unfavorable, because it would be extremely difficult for someone making minimum wage to pay those debts. In contrast, Michael Jackson passed away, incurring $20 mil in debts due to the cancellation of his scheduled tour - and that was just the tip of the iceburg of his debts. For someone who makes a celebrity's income, $20 mil isn't such a big deal - but for someone making minimum wage, $20,000 is virtually impossible to repay.
(3) Inappropriate uses of credit can be any of a number of things. When I was young, I worked next to a Burger King, and thought it novel that I could pay for my breakfast and lunch using my credit card. Without paying the card off in full each month like I should have, I ended up paying interest on those meals. Clothing and entertainment are another example of inappropriate uses of credit, because no one wants to still be paying interest on a pair of jeans that they haven't worn in years - but that's what happens when you use the card for luxuries. A good rule of thumb for credit is to figure out if it is something you *want* or something you *need*. Obviously, I had a *need* for my meals, but I didn't have to use the card for that - I had a paycheck I should have been using. Clothes are a *want* item - unless you seriously have outgrown all of your clothes and no longer have anything to wear - and even that issue can be abused. Financing a car is an appropriate use of credit, since you need a car to get to and from work, etc., but it can also be considered inappropriate if you're, say, in the military, and you're being shipped out next month to Korea or something. Why buy a car that you won't be able to use the majority of the time you're making payments on it?
(4) The main thing to know about selecting a card is what fees are associated with the card. There are a LOT of cards these days that will give anyone a credit limit of $300, but after the $250 in fees to open the account, the consumer only has $50 available on the account. The fees are found in the terms and conditions, in a large box on the page. It will outline late fees, annual fees / application fees / startup fees / any other miscellaneous and bogus fee you could think of, along with any grace period allowed and the amount of days in a cycle. For example, it is good to know how soon after the statement is printed your due date will be - some cards allow 25 days (statements printed on the 1st are due on the 25th), and some allow as little as 23 days, perhaps even less. This means that, as soon as you get your statement in the mail, you might have to put the payment out the very next day, or even opt for a faster payment system, such as billpay with your bank (your bank sends the payment each month), or online payments.
(1) A positive credit history enables you to qualify for more credit, with favorable terms, such as a low APR, low (or no) fees, small payments. A negative credit history would cause you to only qualify for substandard credit, if any at all. With a negative credit history, you're more likely to be required to provide large down payments, pay high interest rates, and also have fees that are not normally used - it is the price you pay for being a high risk investment. To put it simply, when you are buying a car, or even a house, a positive credit history will give you good terms, but a negative credit history can leave you empty-handed - with no car or home financing. Also, when turning utilities on, applying to rent a place, or even when simply getting car insurance or a job (paying more than $20,000/year), your credit might be checked - and deposits might be required for utilities, you might get turned down to rent, or pay more for insurance than anyone else in your situation - or even not get the job you qualify for otherwise.
(2) Responsible use of credit can come in many forms - making payments on time, keeping balances low in proportion to the total credit limits of accounts, regularly paying more than the minimum due each month, not having accounts open but unused, and not having excessive accounts. Also, your total amount of debt should be within a certain ratio of your income - for example, if you make minimum wage, then debts in excess of $20,000 would be considered unfavorable, because it would be extremely difficult for someone making minimum wage to pay those debts. In contrast, Michael Jackson passed away, incurring $20 mil in debts due to the cancellation of his scheduled tour - and that was just the tip of the iceburg of his debts. For someone who makes a celebrity's income, $20 mil isn't such a big deal - but for someone making minimum wage, $20,000 is virtually impossible to repay.
(3) Inappropriate uses of credit can be any of a number of things. When I was young, I worked next to a Burger King, and thought it novel that I could pay for my breakfast and lunch using my credit card. Without paying the card off in full each month like I should have, I ended up paying interest on those meals. Clothing and entertainment are another example of inappropriate uses of credit, because no one wants to still be paying interest on a pair of jeans that they haven't worn in years - but that's what happens when you use the card for luxuries. A good rule of thumb for credit is to figure out if it is something you *want* or something you *need*. Obviously, I had a *need* for my meals, but I didn't have to use the card for that - I had a paycheck I should have been using. Clothes are a *want* item - unless you seriously have outgrown all of your clothes and no longer have anything to wear - and even that issue can be abused. Financing a car is an appropriate use of credit, since you need a car to get to and from work, etc., but it can also be considered inappropriate if you're, say, in the military, and you're being shipped out next month to Korea or something. Why buy a car that you won't be able to use the majority of the time you're making payments on it?
(4) The main thing to know about selecting a card is what fees are associated with the card. There are a LOT of cards these days that will give anyone a credit limit of $300, but after the $250 in fees to open the account, the consumer only has $50 available on the account. The fees are found in the terms and conditions, in a large box on the page. It will outline late fees, annual fees / application fees / startup fees / any other miscellaneous and bogus fee you could think of, along with any grace period allowed and the amount of days in a cycle. For example, it is good to know how soon after the statement is printed your due date will be - some cards allow 25 days (statements printed on the 1st are due on the 25th), and some allow as little as 23 days, perhaps even less. This means that, as soon as you get your statement in the mail, you might have to put the payment out the very next day, or even opt for a faster payment system, such as billpay with your bank (your bank sends the payment each month), or online payments.
Powered by Yahoo! Answers
No comments:
Post a Comment