Agencies and Credit Checks

[cojak]

While I haven’t had an agency ask me for a credit check, I have worked for a credit agency in the past and this is beginning to ring alarm bells.

One of the criteria that could damage your credit ratings is the area around Previous Searches; on the basis that you were applying for credit, NOT that you were applying for work. Too many of them meant that you might be getting yourself into too much debt.

If you end up with half a dozen PS’s over a 24 month period (which is possible), would your ability to apply for a ‘proper’ loan (such as a mortgage) be affected? In fact would your ability to find work in the future be damaged by the fact that you found work in the past?!
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I don’t have the answer to this but it is beginning to worry me…

[TestMangler]

While I haven’t had an agency ask me for a credit check, I have worked for a credit agency in the past and this is beginning to ring alarm bells.

One of the criteria that could damage your credit ratings is the area around Previous Searches; on the basis that you were applying for credit, NOT that you were applying for work. Too many of them meant that you might be getting yourself into too much debt.

If you end up with half a dozen PS’s over a 24 month period (which is possible), would your ability to apply for a ‘proper’ loan (such as a mortgage) be affected? In fact would your ability to find work in the future be damaged by the fact that you found work in the past?!
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I don’t have the answer to this but it is beginning to worry me…

Hi Cojak,

I went through this recently when mulling over a renewal with current client then changing my mind and going with new client. In the meantime current agency credit checked me for a renewal and new agency credit checked me (with permission) for new role.

I ended up having some problems with new agency as there was some inaccurate stuff on my credit file (a previous address), which took some time to clean up.

In answer to your question though, on my credit file, the agency searches show up as a 'generic search' and when getting info from the credit agency, they told me that this is just a name/address/d.o.b./previous address search and does not count as a 'credit search' so multiple searches do not have any effect.

I also found out that if you get an online quote for car insurance (for example) a generic search is run against you then as well, but again, doesn't count as a full search.

So, don't worry, be happy

[cojak]

Phew!

Thanks TM!

[tarbera]

Credit Fails

Of the last 19 Contracts offered by myself and the Manager opposite me 9 contractors have failed our Banks credit check, 100% of these are due to defaults >£500 (Settled or not) sitting on there credit reports. Hence the offer was withdrawn.

nothing to do with number of checks, wrong Addresses or anything else just defaults > £500 100%.

[cojak]

Of the last 19 Contracts offered by myself and the Manager opposite me 9 contractors have failed our Banks credit check, 100% of these are due to defaults >£500 (Settled or not) sitting on there credit reports. Hence the offer was withdrawn.

nothing to do with number of checks, wrong Addresses or anything else just defaults > £500 100%.

That's not an address check though, that's a proper credit check that'll appear as such on your record.

[centurian]

That's not an address check though, that's a proper credit check that'll appear as such on your record.

But I still think the searcher indicates whether it is a check for offering credit, or a check for general indebtedness.

Agents/ClientCo's should be checking for indebtedness, not credit. Whether they actually do that, is another matter.

Get a copy of your credit file. If anything is incorrect, you have the right to have it corrected under the DPA.

[centurian]

Of the last 19 Contracts offered by myself and the Manager opposite me 9 contractors have failed our Banks credit check, 100% of these are due to defaults >£500 (Settled or not) sitting on there credit reports. Hence the offer was withdrawn.

nothing to do with number of checks, wrong Addresses or anything else just defaults > £500 100%.

Pretty strict - so just one default > £500, 5 years ago will result in offer withdrawn.

Important to be aware, because practically any financial creditor can register a default, even if it's a mistake.

[NotAllThere]

Fail to pay off £501, you lose the contract. Fail to pay off several billion, get government help.

[JohnAbroad]

Of the last 19 Contracts offered by myself and the Manager opposite me 9 contractors have failed our Banks credit check, 100% of these are due to defaults >£500 (Settled or not) sitting on there credit reports. Hence the offer was withdrawn.

nothing to do with number of checks, wrong Addresses or anything else just defaults > £500 100%.

Are checks done with each contract renewal?

I can imagine it taking 2 months+ to get mistakes removed from the credit file. There are multiple credit agencies to check with too.