Apologies if this is in the wrong section.

[SteveFromStoke]

I've been chatting to a number of agencies about contracting.

I've contracted on a PAYE basis before, but never as a limited company. The question I have is regarding working in a regulated environment, namely, financial services.

My own credit history is somewhat poor (I've never been made bankrupt, but if I'm being honest, I wouldn't waste my time applying for a loan or credit card at the moment based on the fall out (and the debt I was saddled with as a result of a messy divorce).

Anyway, that aside, my question focuses on two areas.

Firstly, for a lot of financial services roles you need to undergo credit checks. I know that as an individual, I'd be unlikely to pass these checks and therefore, be unable to take employment in this industry. As a Ltd Company, would these checks still apply, or is the fact they are employing a company, rather than an individual on a PAYE basis mean these checks would be unnecessary?

Secondly, does anyone know if I'm likely to have problems opening a business account as a result of my current credit status?

(Trust me, these financial problems aren't entirely of my own doing, when you find your wife in bed with someone else and decide to end the relationship, only to find out 3 months later, she has put over £25,000 on joint credit cards which she has no way of paying off, you tend to miss a few payments as you try and juggle a mortgage and eat and get yourself to work)

[northernladuk]

I've been chatting to a number of agencies about contracting.

I've contracted on a PAYE basis before, but never as a limited company. The question I have is regarding working in a regulated environment, namely, financial services.

My own credit history is somewhat poor (I've never been made bankrupt, but if I'm being honest, I wouldn't waste my time applying for a loan or credit card at the moment based on the fall out (and the debt I was saddled with as a result of a messy divorce).

Anyway, that aside, my question focuses on two areas.

Firstly, for a lot of financial services roles you need to undergo credit checks. I know that as an individual, I'd be unlikely to pass these checks and therefore, be unable to take employment in this industry. As a Ltd Company, would these checks still apply, or is the fact they are employing a company, rather than an individual on a PAYE basis mean these checks would be unnecessary?

Secondly, does anyone know if I'm likely to have problems opening a business account as a result of my current credit status?

(Trust me, these financial problems aren't entirely of my own doing, when you find your wife in bed with someone else and decide to end the relationship, only to find out 3 months later, she has put over £25,000 on joint credit cards which she has no way of paying off, you tend to miss a few payments as you try and juggle a mortgage and eat and get yourself to work)

Firstly if you actually put what your post was about rather than apologising would have helped. We don't even know what it is about to know if your apology is valid or not. The forum titles tend to be pretty descriptive.

Financial checks still apply if you are a LTD. YOU are doing the work and YOU are the one that is the financial risk, not the company. They are not employing the company, they are contracting work to it but a person still has to come in and do the work. If they are in debt they maybe tempted to abuse their position and commit fraud.

Re the company account. It really depends on how much trouble you have been in and how recently. I have met contractors with bad history that got an account but they did work on the credit score in an effort to make it look better and some of these were quite awhile ago. From what I can tell there doesn't seem to be any single factor that is a no but the devil is in the details. Might have to try it just to see. Never been there myself but few posters on here have had some experience in the past so maybe they can shed a bit more light. If it is very recent and includes a raft of CCJ's then it is a pretty open and shut case.

I am sure there are a raft of questions about why does your wife still have a joint credit card after she left and isn't she jointly liable yadda yadda but I am sure you have been over this area with everyone so will leave it there but what I would say is when you discuss this with anyone else you forget this bit. A) People don't care how you got in to debt and B) makes you look like you can't run your life or you money. C) It's your personal problem, keep it that way. Just say you had credit problems and forget the story. Maybe I am being harsh but so many people go in to the inner workings of their debt for no reason and it doesn't look good.

[TykeMerc]

When contracting to the banks and financial services they will credit check you personally, it could be a major issue for you.

Opening a business account could be a challenge with a bad credit history irrespective of the cause.

[SueEllen]

While you won't be able to contract in financial services and will have difficultly getting credit for things like a mobile phone and broadband through your company, you should be able to open this business account Halifax Treasurers Account as it's passbook operated.

[Old Greg]

While you won't be able to contract in financial services and will have difficultly getting credit for things like a mobile phone and broadband through your company, you should be able to open this business account Halifax Treasurers Account as it's passbook operated.

Others will know better whether this is feasible but could the OP set up a Ltd, own 100% of shares and appoint his dear old Mum (or whoever) as sole director and himself as secretary. Would that open the door to a business account. Speak to sjd as they seem to be able to open accounts with the lovely Cater Allen bank pretty easily.

Doesn't help with the financial services business I'm afraid.

Best of luck.

[Zippy]

Use one of the more reputable umbrella companies until your credit score improves a bit. You'll lose a bit of money but you can still claim legit expenses.

[Bexter]

hi there, just wanted to quickly point out that having a bad credit score does not necessarily exclude you from working in financial services. I was once recruiting someone, and then found out from HR that we couldn't hire them as they had a CCJ. And from what I could gather, being in debt generally isn't the deciding factor...its more about what your credit score is, i.e. do you have either a CCJ, or any missed payments on cards or credit accounts.

I know you say you have missed a few payments, and I assume you have read your credit report and checked your credit score with experian etc, but I would still have a go for it. If you get offered the job in banking and then they turn you down cause of the credit check, you've not lost anything.

The bank account probably won't be as difficult, as others have suggested, there are ways to sort that. Again though, probably depends on things like CCJ's and the extent of missed payments.

[Scrag Meister]

As others have said, it not having debt that is the issue. The problem arises when you get judgements against you for not servicing the debt well.

I have a monster mortgage and occasionally a big lump of my credit card, but these don't way against me in the job hunt.

Its when you get in a position where your debt, payment issues cloud your judgement or tempt you to do something illegal.