Remember Columbia House? Credit lesson

[RedMichael]

Remember those ads in magazines? There was a different company too. Where they would give you CDs/Movies NOW if you order more later? Pay later! No obligations now!

When I was a dumb kid (6-7 years ago) I did that deal and like a month later moved. I didn't even get the DVDs. Fast forward to a month ago.


I was given a conditional offer for a very good, well paying (to me), and stable government job. I had to jump through all the hoops. I passed each one with flying colors. I was awaiting my official offer when I get a call from the recruiter.


"blah blah blah, Did you know you have a balance of $100 with a collections agency?"

"No"

"Do you plan to pay it?"

"Yes, of course, right away"

"Thank you for your time."


The next week I got my official rejection letter.




There is no excuse for forgetting about Columbia House, no excuse for not checking my credit report, and there are probably other things that I can only blame myself.




The point is, kids are stupid and your credit is incredibly important. I encourage anyone to check their credit report just to be sure or if you have kids or grand kids. MAKE them. Sit down and make them do it. It WILL come back to haunt them.


And if anyone thinks they were being stingy. I WANT to work for a place like that. I have been at a job where I am the only one who is dependable.


PS. And remember to cancel whatever credit report service you do. They are always set up for monthly fees.


Edit: It was reported six years ago. Because I moved 8 years ago.

[BobGrau]

... I have been at a job where I am the only one who is dependable...

Good God, do I know what you're talking about. I just got a text from my boss asking why I'm not at work today. I had to remind him that I'm on holiday this week. This is the guy who texted at the start of the week offering me overtime to cover my own shifts.

[Pragmier]

That's ridiculous RedM. I think employers need to have some flexibility. To expand on the topic, what a f*cked up catch22 it is when the unemployed can't get work because they fell behind on their bills after losing a job.

[RedMichael]

I won't blame anyone for something I could have prevented. My credit wasn't sterling from a bad car accident and medical bills but all that was paid and done with years ago.






Not to de-rail from the lesson..
I will admit though,the whole situation was odd. The hiring manager was pretty obese, short bald, and although he appeared to be in his mid to late 40s he carried himself like he was in his mid to young 20s. Almost everyone who worked there were young women to soccer moms and every one of them was gorgeous. I wouldn't have minded that work environment one bit but it did come off as really creepy when I look back on it.

[MV/Liberace!]

i think it should be against the law for an employer to check your credit report for employment screening purposes.  your credit report should only be used for loaning money to you, and even THAT is stretching it, as i see things.  the whole credit reporting system is a scam designed to enslave us financially and otherwise.

[McPhallus]

But what if that information was incorrect?  You have a right to dispute it and have it corrected.  To lose a potential job over something like that without the right to dispute seems, I dunno, possible grounds for a lawsuit.


Re: record clubs.  I was a teen in the late 80s, and by then the gig was pretty much up.  They even talked about those clubs in my high school consumer ed class.  The only one of those I ever messed with was BMG, where contracts were replaced with aggressive marketing and deceptive pricing.  I remember making fake accounts and having dozens of CDs sent to my address without them ever getting a clue that my single-family residence was nerve an apartment complex.  Fools!

[PB the Deplorable]

i think it should be against the law for an employer to check your credit report for employment screening purposes.  your credit report should only be used for loaning money to you, and even THAT is stretching it, as i see things.  the whole credit reporting system is a scam designed to enslave us financially and otherwise.

Well maybe.  Lots of positions require someone to be responsible with money - expense reports, corporate credit cards, negotiating with suppliers.  I think someones credit record is somewhat predictive of how good an employee they'd be - organized, stable, responsible.  Auto insurance companies certainly see a difference between drivers with good credit reports and those with lousy credit.

Even someone stocking shelves or running a cash register seems more likely to steal if they are always so short of funds they end up not paying their bills.  Who needs that.  If they can't manage money, why just assume they can manage their job.  I doubt a missed payment or a small outstanding balance is going to make a difference in most hiring - I think we're talking about screening out the real idiots here.  If there are legit reasons for lousy credit, it can be explained - they aren't going to run a credit check until they decide they probably want to make the hire.

Shit, why not just pay the bills. 

[Falkie2013]

Good God, do I know what you're talking about. I just got a text from my boss asking why I'm not at work today. I had to remind him that I'm on holiday this week. This is the guy who texted at the start of the week offering me overtime to cover my own shifts.

A number of years ago I had a new supervisor who didn't like me because I had gone over his head when I was a mere employee ( before I became a manager ) and went to the owner of the company because I had discovered 2 other employees had been embezzling money from the company for years.

It made him look bad and when I finally got my vacation as a manager, he tried to have me fired because he claimed I failed to come to work one Monday when I was still into my vacation.

It made him look like a fool again.

But getting back to credit, there's this weird idea that if you're credit is bad it's going to reflect somehow on your ability to do the job or you're work ethic.

I've gotten bad credit because I lost my job and my apartment within 2 months or became very ill.

Yet no one ran a credit check on me when I applied for a new job and got hired, though they did do a background check which takes up to a month, yet one gets those constant background pop up ads on their computers all the time, which is something I don't get.

There are lots of reasons why people can have bad credit, some of them are errors on their credit records or even having a clunker towed.

It shouldn't stop anyone from being employed solely on that criteria.

And if there isn't a law against it, there should be.

[PB the Deplorable]

I just realized the people I've known that have bad credit (mostly wives and girlfriends of friends) and the people I've known who I would never hire are pretty much the same group.

None of them had legit reasons to not pay their bills other than not giving a shit about being responsible.

[Falkie2013]

I just realized the people I've known that have bad credit (mostly wives and girlfriends of friends) and the people I've known who I would never hire are pretty much the same group.

None of them had legit reasons to not pay their bills other than not giving a shit about being responsible.

Or they could have been this woman and that's how their credit got bad.






www.youtube.com/watch?v=vQ_i3u22Kcs








At least it may be a woman on some planet.


But hopefully not a former flame of Paper Boy.

[onan]

Ever wonder how many millionaires have went bankrupt? When those with means can't pay their bills they have attorneys take care of it, yet many of these then go on to hire others.
It is pretty simplistic to suggest a poor choice in relationships means all those with less than stellar credit are not good employees.
Trump went bankrupt... I wonder how many smaller businesses suffered due to his poor management? But now he is hiring again. People with no connections or family stability may have difficulty paying their bills at times. To be completely honest, if you have never had the wolves at your door and nothing to hand them but your ass... I am not sure I would find your company all that welcome.
I won't go into the details, but I was charged a significant penalty by a credit card company several years ago. Even upon proof that I was not at fault the bill kept saying I had to pay late fees. It showed up on my credit report. And guess who had to continue to prove the bill was paid?
And honestly, to think that in today's world, that your employment can hinge on what you type on the net can cause the loss of employment. Now they want to see how I pay my bills. Fuck them.

[BobGrau]

I've long believed that prospective employers should have to provide references the same way employees do. Can't see it happening tho.

[PB the Deplorable]

... And honestly, to think that in today's world, that your employment can hinge on what you type on the net can cause the loss of employment...

I'm with you on that one.  Here in Calif they finally made it illegal for employers  to ask for social media passwords.

I think most people have at least ok credit reports.  There are people that are out there just absolutely abusing credit and taking advantage of the system - just like everythig else.  I'd hope that's who an employer is looking to screen out, and not some person that had a late payment on their credit card bill 3 years ago.

[RedMichael]

Yea, my credit was in the tank from a bad car accident and being unable to make the 30 mile commute to work. So there was a month gap in between jobs which can really screw you. All the dings on my credit revolve around back then. I feel it is explainable but I always use the term "There is no excuse but there are certainly reasons you can understand." Regarding anything that is ultimately my fault. This probably backfires but I am just not a make excuses kind of guy.


But some of these replies are getting me worked up about the system.



I regret my credit being tanked but when one of the collectors called me and I said "Hey man I want to pay you as soon as possible but if I do it as fast as you want me to, you will be calling me up a ways down the road because someone else didn't get theirs."


If he merely asked this, it would have been fucked up but he stated:


"Ask family to borrow money"



Edit: Paperboy, poor use of credit cards is one of the top reasons for bankruptcy. However, the top two are Medical expenses and loss of a job.


Medical expenses
Loss of a job
Poor use of a credit card
Divorce
Unexpected events


I am totally with you in seeing people that abuse credit cards or can't pay their bills due to lack of concern as chumps, but I think you are selling a fair portion of people with shitty credit short. It is all anecdotal but the people I know who are horrible with money have perfect credit because their parents swoop in to pay things to prevent that.

[McPhallus]

Your last post suggests you didn't have any kind of cushion in the form of emergency savings.  Do you not save money, or do you make lifestyle choices that prevent you from having anything left over after your monthly obligations? I just got out of a 2-month unemployment period (i'm a consultant, and it comes with the territory, often on short notice) and was able to meet my basic obligations.  And in my case, the maximum amount of unemployment doesn't cover the rent.

I guess my point is try to save up a little for a safety net for shit you can't predict.  They say people don't save much anymore, and that is part of the problem.

[PB the Deplorable]

... Edit: Paperboy, poor use of credit cards is one of the top reasons for bankruptcy. However, the top two are Medical expenses and loss of a job...

... I am totally with you in seeing people that abuse credit cards or can't pay their bills due to lack of concern as chumps, but I think you are selling a fair portion of people with shitty credit short. It is all anecdotal but the people I know who are horrible with money have perfect credit because their parents swoop in to pay things to prevent that.

And I don't mean to do that.  You also mentioned kids can be dumb about this, good crtedit is important, and it's nice to work where people are dependable.   

I'd also like to add that we don't need a system where more and more are denied opportunity for sometimes almost arbitrary reasons, which I fear is where we are heading. 


Congrats on your new job.

[McPhallus]

I'd also like to add that we don't need a system where more and more are denied opportunity for sometimes almost arbitrary reasons, which I fear is where we are heading. 

Perhaps the opportunity will be denied for all the old reasons--including the bad ones--and the newer, more arbitrary means will simply be used for justification.

[RedMichael]

Yes. always save up 6 months of living expenses if possible. This is another good lesson.


The point of the thread was to use me an example of what not to do in hopes people check their credit or force their kids/grandkids to check their credit and actually look at it.


I took a personal finance class a couple years ago and it was the best money I ever spent at college so far. Most of it is common sense but it needs to be gone over.

[Eddie Coyle]

And honestly, to think that in today's world, that your employment can hinge on what you type on the net can cause the loss of employment. Now they want to see how I pay my bills. Fuck them.

Shoveling shit from one side to another seems now to include your putting forth five required references. It's sickening. These demonic fucks are looking for any reason to not hire people, so they set up shop somewhere without pesky FMLA or OSHA."Free trade"

        These days, most people reside in fenceless debtor's prisons anyway, a benign indentured servitude which will continue way past 65. It is the land of the free...if you can afford it. But don't get married,have kids or think about getting sick.

[Meanandnasty]

They must not have checked Noory's credit before he was hired. I guess though that he does not handle money only a microphone.

[ShayP]

Ahhh....Columbia House.  The good old days where you could pay for one cassette and get 11 free.  I did fulfill the agreement and bought (I think) 3 more at a crazy price.  Later my friends and I took advantage and came out unscathed.
Regarding the issue of credit rating dictating your qualifications for a job.....BULLSHIT.  I think it is unfair.  I can see if it were a banking job, etc.  Nonetheless all management jobs require you to handle the budget.  Me....I had/have bad credit.  I'll admit it.  Circumstances in my life caused it.  No need to sing the sad song or justify it all.  What I will say is that in any past management position I held, I was above expectation on spending and costs.  I didn't steal.  I created profit and bonus opportunities.  When life changed and I had to move on, employers started with the credit check.  Even though I had a solid job history with proven results, in addition to great references, I didn't get the job I applied for.
I also attempted a career in law enforcement.  I didn't meet the credit rating criteria for that jurisdiction. Therefore I couldn't complete the application process.  Oh yeah....a bunch of police officers over the years here have been arrested for fraud, theft, prostitution......BUT they have good credit!
Needless to say, my personal life has been in shambles at times. My divorce screwed both my wife and I.  Regardless of that, I have never let it affect my work.  Anyway...the topic of credit worthiness regarding a job strikes a nerve with me.  I understand there has to be a safeguard. Anyway.....I am weary and do not want to continue.  Probably said too much. LOL!  By the way....
George Noory sucks. 

[onan]

Credit is the new version of slave ships. Eddie stated it so precisely when he wrote:

most people reside in fenceless debtor's prisons

It is very easy to look at life with our own filters and disregard that many in this country live close to the poverty line and below it. No matter what your take on the economy it is fairly well know that real life income has declined since the 70's and that more income has become sequestered (yeah I used it) in the laps of the very wealthy. That isn't warfare that is fact.


Even here the question has been posed: did you have a cushion? did you save? Those questions although are quite valid they also disregard that many do not make enough to save significanntly. If one makes minimum wage, and many in this country make below that, it is nearly impossible to make a cushion.

[Marc.Knight]

Many segments of the economy have become unrealistic and unsustainable.  The outrageous housing "market" is just one example.  Since when should a "home" become nothing more than a commodity? 

It is so easy to have bad credit today in this country that I think its importance is overrated, or soon will be.  I recall a few years ago sending a check to pay on a medical bill about a month after I was charged.  The check was sent back to me with a note saying the account had already been sent to a collection agency.

[RedMichael]

You used to be able to send what you could a month and they would be ok with that. Now, it means little and after a certain time it goes to collections.


Edit: What is crazy is it got bad real fast in the last 15 years or so from my understanding.

[Marc.Knight]

You used to be able to send what you could a month and they would be ok with that. Now, it means little and after a certain time it goes to collections.


Edit: What is crazy is it got bad real fast in the last 15 years or so from my understanding.

What is nauseating is how the credit bureaus pay millions of dollars for TV commercials hoping to make us all define ourselves and others by credit scores.  Now we have a "number", owned and calculated by someone else, that not only is identified with us individually, but also defines our worth and value in and to society. 

[McPhallus]

Even here the question has been posed: did you have a cushion? did you save? Those questions although are quite valid they also disregard that many do not make enough to save significanntly. If one makes minimum wage, and many in this country make below that, it is nearly impossible to make a cushion.

Some people can't save because of their income or high-cost medical conditions, etc. I get that.

But for many, the problem is just bad decisions, i.e., having to have a new car they can't afford, the big screen TV paired with overpriced cable, that $600 smartphone, etc. and those making less than 30k really need to refrain from having six kids.  Our economy encourages us to constantly crave things we don't need and buy stuff we can't afford.  But personal responsibility has to factor in there somewhere.

[onan]

Some people can't save because of their income or high-cost medical conditions, etc. I get that.

But for many, the problem is just bad decisions, i.e., having to have a new car they can't afford, the big screen TV paired with overpriced cable, that $600 smartphone, etc. and those making less than 30k really need to refrain from having six kids.  Our economy encourages us to constantly crave things we don't need and buy stuff we can't afford.  But personal responsibility has to factor in there somewhere.

Personal responsibility is always a factor. The issue is what is the number of just irresponsible compared to those actually struggling. Then it gets complicated.

[Marc.Knight]

Personal responsibility is always a factor. The issue is what is the number of just irresponsible compared to those actually struggling. Then it gets complicated.

As humans we should expect a degree of irresponsibility as we mature.  If someone made poor decisions about buying an overpriced smart phone at one point in their life it should not haunt them for 7 to 10 years afterwards by impairing their ability to buy a house or get a job.  Nuts.

[mombird3]

Wow. We have been living this. and I know this so well. My husband lost his job at age 64. I was going through the difficulty with my Meniere's Disease and could not find work that did not involve standing. My balance is off and my hearing goes out every time there are seasonal changes in the temperature and pressure. We could not find  jobs. That was 14 years ago. And my husband is on Social Security and Medicare. We pulled a free credit report about two years ago for a legal case. In it they showed two employment agencies that looked in to our credit. That is why my Husband did not get work. And they looked at it when we were seeking help from the charity.
You said responsibility was a factor. We had problems when a family member (sister-in-law) executor on an estate of my Husband's Mom charged us estate tax,1996, and we later learned there was no tax. He was out of work and we paid everything we had to her. She had aid the tax and claimed the papers were lost.We learned later that there was no tax and statutes were gone. This caused credit card debt, liquidation of my retirement savings and we could not qualify for help. A few years later my step daughter took the money from my Husband's sister from us( without a power of attorney) and moved us to high cost Phila. And she used all of the money without telling us. Our credit tanked and we were evicted. And no job. He is now 78 and thank God for my pensions.We moved to South Carolina. And his social security and my pensions help us. People have problems. But there should be help in place so those with poor credit due to problems finding work and not buying expensive items can get some kind of proof they were not negligent.
I think the Columbia House story smacks of  being excessive. The credit statutes should be over.  Sorry that you had this happen. Can you prove they were years ago.

[mombird3]

you also said something else. My husband was told he needed a referrence. The family business he worked with his Dad closed in 1990. Caused his not finding work. I married him in 1996. We were told in 2001 he needed a referrence from his DAd but his Dad died in 1989. The other job my husband had in 1998-1999 was sold. The oner was from Greece. He retired in Greece. The new company did not need my husband. The employment agency wanted his Greek boos to give a referrence. We could not locate him. He was in Greece. No job. The only place was minimum wages at retail in Macy's. We were evicted from Phila. because we were paying rent late. Thank God we got out from all of it. We are living in SC within our means.