Funny video about Credit Reports. While credit is not usually a funny subject John Oliver does a good job of shedding some light on some facts about credit with his humorous twist.
Most of it is relevant but remember he is in the USA, and they have 3 credit reporting agencies there but in Canada we only have 2 (Equifax & Transunion). We do not have the credit reporting agency called Experian here in Canada.
It’s interesting how John Oliver pokes fun at the fact that some employers use credit rating as a criteria for job qualification. This does not seem fair, but it is true. It does seem more common in the USA than in Canada, however there are some industries in Canada that I know of that often ask for a credit checks for job applicants. The ones I know about that either ask a new job applicant 1. if they have been bankrupt, or 2. check their credit are some of the following; – insurance companies, banks, financial departments in Government, high level security jobs, high ranking military positions, etc.
So this is another example of why it is SO important to rebuild your credit score as fast as possible when you are restructuring your debt (with a Consumer Proposal or Credit Counselling, or Bankruptcy etc.) or if you just have a bit of spotty credit from a few past mistakes.
Here at 4 Pillars Consulting we specialize in helping people get out of debt and then rebuild their credit score fast! I have seen cases where our advice has helped a client speed the process up by many years; simply by following a few steps from our exclusive Credit Building Program clients can absolutely have good credit fast.
The fact that some employers do check your credit is yet another reason to NOT go Bankrupt. Bankruptcy does indeed fall off your CREDIT report in 6-7 years, BUT what a lot of people don’t realize is that it is permanent record in the BANKRUPTCY DATABASE and it is basically public data. SO for the rest of your life anyone can check if you have been Bankrupt simply by doing a Bankruptcy Search and can see the truth. So if your job application asks you if you have ever been bankrupt, and you have, but you decide to say no because it is no longer showing on your credit report anymore; then that is untrue, and if you are found out to be lying on a job application, it could mean you do not get hired. Also, since the employer may be doing a Bankruptcy search anyhow, there is not point to lie. This also comes up on most loan applications – the question is “have you EVER been Bankrupt”. This means if you ever have, then you need to say yes.
So, if you are struggling in debt and considering Bankruptcy, please consider calling us first and seeing if we can help you avoid Bankruptcy, by helping you arrange to reduce your debt by a process called a Proposal, instead of doing a Bankruptcy. Many times a Proposal can reduce your debt, reduce your interest, reduce your payments, and allow you to keep all of your assets. All this can be done for as little as the cost of Bankruptcy, but it save you from a lifetime of problems.
Reach out to us if you are interesting in learn how to reduce your debt and avoid Bankruptcy.