What is involved in an employment background check? It really depends upon the position and the responsibilities. There are different requirements for handling money, working with children, government jobs, security clearance and job responsibility.

Why do companies conduct background checks?  Companies are responsible for their employees’ actions and want to keep the general public, employees and their customers safe. They want to ensure that their future employees meet their requirements and they didn’t lie on their application about education, past employers and criminal background.  As long as employers are liable for their employee’s actions, background checks will be a reality. read more »

On February 25th I wrote this article summarizing the IRS’ new tax lien policy and what it meant to consumers who wanted to get Federal tax liens removed from their credit reports.  The IRS’ announcement, which can be seen here, doesn’t specify whether or not their new rules regarding withdrawals are retroactive.

Today we may have been given a clue as to their willingness to withdraw tax liens that predate their new tax lien policy announced February 24, 2011.  I spoke with a gentleman from Texas who didn’t want to be identified.  I’ll call him Paul for this piece. read more »

You want to purchase a home because the price is right and interest rates are low.  And while many experts predict the value of real estate will continue to drop, if you’re willing to buy and stay put for a while it might not be a bad time to take the plunge.  What role does your credit score play in the mortgage process?  The short answer…a huge role. read more »

You’re applying for a job and the prospective employer requests that you complete a form that gives them permission to obtain your credit history.  Can they do this?  Is it really legal to look at someone’s credit report before hiring them?

Yes, they can.  Employers can pull your credit reports because the Fair Credit Reporting Act (FCRA) gives them the right to do so. They can obtain a consumer record on you, which includes a credit report and other data as part of the background check. They must have your written permission to obtain a credit report. read more »

Your credit score has a major impact on the interest rate you pay for your car loan. MAJOR!  There are many online tools that give your rates based upon your credit score, but before you even begin to shop let’s dig into just how important that three digit number is to your ability to get an auto loan.

The credit score predicts credit risk and for most scoring systems a high score indicates lower risk.  As such, the interest rate will be lower.  On the other hand, a low score indicates higher risk and you would pay higher interest rates, or be denied straight out.  Those with lower scores will have to pay more to get financing. read more »

If you are evaluating whether to lease or buy a car, you need to be aware of all the costs.  And, what are the pros and cons of leasing versus buying?

Leasing advertisements focus on the monthly payments which are usually much lower than that of car loans. The lease terms are shorter and often require a large down payment. There are usually additional fees and penalties related to the lease such as penalties for exceeding mileage. At the end of the lease, you don’t own the car or have any car payments..unless you’ve exceeded the mileage allotment. read more »

Today FICO® revealed the results of a new study profiling the “strategic defaulter.”  A strategic default is the process whereby a homeowner walks away from his home despite being able to afford the payments.  The results indicated that the likely strategic defaulter looks very much like a low risk borrower. read more »

When you shop for a car it takes time, whether you shop online or visit dealerships.  In the end you’ll likely still go to several dealerships, test drive several cars, make your final selection and then negotiate the price.  The question is…are you as diligent when you shop for financing for that new or used car?

Your credit has an impact on the interest rates you will pay as well as down payment requirements.  The preference should be to pay in cash, but most of us aren’t wealthy, so we need to find the best deal on a loan. read more »

Thanks to the CARD Act, credit card issuers overtly disclose how much interest you’ll pay on credit card debt if you only make the minimum payment.  They also have to disclose how long it will take to pay off a card by just paying the minimum.  “How can this be right…22 years to pay off my $15,000 balance?”   I’ve spoken with many consumers and I can tell you that a lot of people think the information is a misprint.  How can it take 22 years to pay off a $15,000 credit card debt? read more »

Last month I wrote about how the default rates of the top credit card issuers was, generally, dropping.  Here’s the article if you want to review.  Now, for the second straight month the default rates have dropped for the top credit card issuers.  This is good news as it signals a trend in falling default and non-default delinquencies (accounts that are past due but not terminally delinquent). read more »