Credit Report A Factor In Hiring

We’ve come to accept that our credit history will be pulled and checked if we want to borrow money. That’s fair enough. We’ve begrudgingly accepted that insurers set car or home insurance premiums in part based on how customers handle their credit.

A growing number of people affected by record joblessness and foreclosure rates nationwide now have a new worry: Will bad credit keep me from getting the job?

Regarding the use of credit background checks for employment, supporters say the checks are a smart business tool for certain industries and critics counter that the reports unfairly discriminate against minorities and those affected by the recession.

With millions of Americans nursing damaged credit reports after a bruising recession, some lawmakers are seeking to limit the use of credit reports as a factor in hiring.

According to The Fair Credit Reporting Act, employers are required to receive written authorization from an applicant to run the report and then must provide that person, or employee, with a copy of the information.

But, do workers with money troubles have a propensity to steal from their employers? If a person has lousy credit, is he or she is more likely to embezzle money or accept bribes? There is insufficient data to support a correlation between a credit score and job performance and risk.

Certainly there are some jobs where it does matter how an employee or applicant handles money. Some employers are required to pull a credit report if an employee is going to handle cash or work in a financial services position. At least that makes sense.

The assumption that is made is, if somebody is behind on their bills, then it tells something about their integrity or responsibility, but in many cases that assumption is flawed.

This trend of employers digging into people’s personal finances is something we should be challenging and restricting.

Foreclosure Prevention Workshop

WHEN: August 10, 2013 – 9AM to 3PM

WHERE: Pompano Civic Center, West Banquet Room: 1801 NE 6th St Pompano Beach, FL 33060

WHAT TO EXPECT: Learn your options to avoid foreclosure. Speak One-on-One with a Certified Housing Counselor

and available lenders : CHASE/ WELLS FARGO/ OCWEN / OTHER SERVICERS. Open to the Public. Call to Register  866.618.3328

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Should You Refinance?

Interest rates have fallen so much, it may seem like a no brainer to refinance your home mortgage.

The decision to refinance your mortgage isn’t one that should be taken lightly. Before deciding, you need to understand all that refinancing involves. Your home may be your most valuable financial asset, so you want to be careful when choosing a lender or broker and specific mortgage terms. Remember that, along with the potential benefits to refinancing, the interest rate isn’t the only thing to consider when shopping for a new loan. Refinancing, after all, isn’t free. There are the bank fees, the bills for a new appraisal and inspection, your lawyer’s fee, etc.

When you refinance, you pay off your existing mortgage and create a new one. You may even decide to combine both a primary mortgage and a second mortgage into a new loan. Refinancing may remind you of what you went through in obtaining your original mortgage, since you may encounter many of the same procedures–and the same types of costs–the second time around. It requires an application, credit check, new survey and title search, as well as an appraisal and inspection fees. As you know, this process can be quite lengthy and expensive.

Age is another consideration. Carrying a mortgage into retirement has traditionally been viewed as a bad idea – ideally, you should be as debt-free as possible when your income stops.

As a rule of thumb, it pays to refinance if you can get an interest rate at least two percentage points lower than what you are currently paying. However, every situation is different. Make sure to carefully weigh the benefits against the costs to make the best choice for your situation.

DMCC is a 501 (c)3 nonprofit organization committed to educating consumers on financial issues and providing personal assistance to consumers who have become overextended with debt.  Education is provided free of charge to consumers, as well as personal counseling to identify the best options for the repayment of their debt. To speak to a certified credit counselor, call toll-free 866-618-3328 or email

Ways To Build Your Financial Future

You’re just out of college, starting your first job. Building long-term financial security is probably the last thing on your mind. But. young people just entering the workforce must not underestimate the importance of financial planning geared toward saving for the future.

One of the best deals is an employer-sponsored retirement plan such as a 401(k) plan, if available. These tax-advantaged plans allow you to make pretax contributions, and taxes aren’t owed on any earnings until they’re withdrawn. What’s more, Roth-style plans allow for after-tax contributions and tax-free withdrawals in retirement, provided certain eligibility requirements are met. Another big plus is direct contributions from each paycheck so you won’t miss the money as well as possible employer matches on a portion of your contributions.

If you’re already participating, think about either increasing contributions now or with each raise and promotion.

If a 401(k) isn’t available to you, shop around for individual retirement accounts (IRAs), both traditional and Roth, at banks or mutual fund firms. Generally, contributions to and income earned on traditional IRAs are tax deferred until retirement; Roth IRA contributions are made after taxes, but earnings thereon can be withdrawn tax-free upon retirement. Note that certain eligibility requirements apply and nonqualified taxable withdrawals made before age 59 1/2 are subject to a 10% penalty.