Credit History and Airline jobs...

[Shiftace]

Hello Folks:

I know that certain employers look at candidates credit history before making a decision. Just wondering if Airlines, look at potential candidates' credit history? Also if one "settles" off an account in FULL - how long does it take before the credit history cleans up??

Cheers

Sunny

 

[surreal1221]

Some do, some don't.

That's about as useful as I can be regarding this one. It really depends on the company and none of them treat it the same way. I'd just do your best to clean it up and keep it clean.

 

[DenverPilot8]

Hello Folks:

I know that certain employers look at candidates credit history before making a decision. Just wondering if Airlines, look at potential candidates' credit history? Also if one "settles" off an account in FULL - how long does it take before the credit history cleans up??

Cheers

Sunny

While I can't speak for airline hiring and i can on the credit thing. Credit unfortunately is not measured in black and white. But there are certain behaviors that usually results in "good credit". One thing is your debt level compared to your available credit. Lets say you have a $10,000 credit limit and your balance is $1000. NO big deal there. But lets say that you are consistantly carrying a balance of over 50% of your available credit of $6000 of the $10,000 then it will efffect your score negatively. The number of accounts also matters. Oddly though if you CLOSE a lot of accounts that will result in a negative. But to answer your question unfortunately when you "settle" your debt by making a huge chunk payment in full after carrying a large debt for a long time that results in a negative but only initially. Doesn't make sense but it does. But what it will do for you is improve your credit in the long run by simply having less debt. The best way to improve credit I think is to use it every month but pay it off every month. That will show that you can pay for what you borrow every month. You would be surprised at how fast you can improve your score by doing the simple things.

 

[darrenf]

Credit History and Credit Score are not synonymous. If you have any negative items on your report, they will stay there at least 7 years. After that, 9 times out of 10 they fall off the report. Negative items 6 years old do not affect your score to a great degree, but if someone is reviewing your report (which if they are, they are likely looking for judgments, not so much missing a credit card payment here and there), an old negative will show up.

 

[TUCKnTRUCK]

Don't look on pilot forums for credit info. Information that appears is bound by legal limits and statues of limitation. In NH for example, a revolving line of credit that is not active legally can only be reported for 3 years. After that it is not a valid debt, and can not be reported.(Statute of Limitation) "Most" credit is limited by SOL... if a bad debt that is beyond your states SOL is hanging around, or has been "refreshed" or re aged by a collection firm, seek legal help, as these actions are VERY illegal. In some cases making a payment on, or agreeing to make a payment on a debt beyond it's SOL is enough to reset the time line, making it reportable again. If you are really worried about it, seek professional help, and not a phone debt consultation firm. They will be able to handle any disputes, SOL items, and collection practices that are outside of what is allowed in the FCRA.

Credit is more of a discriminator in retail jobs where they are trying to limit loss and theft. Sometime is plays into reliability, but for what it's worth, no Aviation job i have applied for ever ran more than the standard background check, and only 1 verified my college education. Most don't list it on the employment sites at all. If other things in your background started to not add up, then it would prob. become more of a factor.

Bad Credit will burn you in a lot more ways than a job though. Get it fixed asap... or you will always be where you are now... wondering how it will affect you

 

[SlumTodd_Millionaire]

I think I had to sign a form to authorize a credit check when I interviewed at AirTran, but I don't remember it ever appearing on my credit report, so I don't think they actually did it. Some airlines do, though.

 

[BigFellor]

One thing is your debt level compared to your available credit ... The number of accounts also matters. Oddly though if you CLOSE a lot of accounts that will result in a negative.

Because you are reducing your available credit, while most people still carry balances on their other cards. Thats why the only credit card account I have canceled was a minor one with a $300 limit ($0 balance). They wanted to charge me a $59 annual fee, I didnt want to pay it. We probably have $40k or so in available credit on various cards, but dont use anywhere close to that. The one card we do use frequently for gas and groceries mainly, we pay off every month. Havent paid a dime in interest, and they give us cash back. Gotta love working the system. Keep them open for a good ratio of available / used credit, just dont use them. If you just cant resist, I literally had to put my debit card on ice for a while. Put debit/credit card in ziplock bag, put that bag in a second ziplock, fill with water, place in freezer. Works wonders to get things in order.

 

[kellwolf]

I think I had to sign a form to authorize a credit check when I interviewed at AirTran, but I don't remember it ever appearing on my credit report, so I don't think they actually did it. Some airlines do, though.

I think I had to do the same thing at PCL. I filed bankruptcy back in 2001, and they still hired me.

 

[SpiceWeasel]

I think I had to do the same thing at PCL. I filed bankruptcy back in 2001, and they still hired me.

Not to minimize your situation there (because that blows!), but that could definitely qualify you to fill in for Uncle Phil.

 

[TUCKnTRUCK]

Unfortunately what we lost in all the bank mergers of the 98-04 time span, was the face to face connection with your banks. No longer can you go sit down and work out a new deal, or explain why something is showing up. Computers and corporations have made it a very black and white world, where the only way you could buy a loan was to sign a shoddy ARM.

The whole credit system needs to be revisited.. but thats another matter.

The airline has to pay to run your credit.

Your credit will most likely not tell them anything about your ability to pass training, get along with other crews, or the amount of aviation information you may contain.

When i asked recruiters here, i was told, they only run it when something pops up. Say you claim to have lived at an address while something else shows you did not, or claim employment etc. If there is a lot of background info that does not jibe, they can then run your credit for more information.

In this day in age, if they feel like they need to run your credit, you already didn't get the job. Last summer, maybe. Now? nope.

I will give the same interview advise i give everybody - Be yourself, don't try to hide, cover, spin, or twist you past. Own up to your mistakes, and recognize your weaknesses. if you can do all that, you can get a job.

 

[joliet]

Surprised nobody has yet to say it isn't any of a companies god damn business.

 

[darrenf]

Surprised nobody has yet to say it isn't any of a companies god damn business.

Ahh, but if they are trusting you to make decisions in the cockpit, and they decide that bad financial decisions equate to bad pilot decisions, it is their business.

 

[joliet]

Ahh, but if they are trusting you to make decisions in the cockpit, and they decide that bad financial decisions equate to bad pilot decisions, it is their business.

They do?

What if you had a failed business?
What if you just had a terrible divorce?
What if.......


The two have absolutely nothing to do with each other. The only time I could imagine them doing a credit report on a pilot is if the pilot was going to be issued a company credit card, or cash for overseas trips.

Otherwise it is an invasion of privacy.


edit: and from someone on another part of the interweb.............. they should be allowed to run your credit..... "they want to know that you really need this job." :laff::laff:

 

[darrenf]

They do?

What if you had a failed business?
What if you just had a terrible divorce?
What if.......


The two have absolutely nothing to do with each other. The only time I could imagine them doing a credit report on a pilot is if the pilot was going to be issued a company credit card, or cash for overseas trips.

Otherwise it is an invasion of privacy.


edit: and from someone on another part of the interweb.............. they should be allowed to run your credit..... "they want to know that you really need this job." :laff::laff:

Again, if the company decides there is a correlation, then it is within their right to run the check. It is within your right to not apply to the company.