Mid Level Background Check Credit Check - Unique Situation
Ladies and Gent, I have a quite unique situation and want people's opinion on best course of action. Some of the following might be distorted to protect my identity but the end result is the same.
I have been in the work force for 6 years now, currently working as a equity sales trader in Boston. I just landed a great opportunity, with a significant pay bump.
All good right? Here's the problem. I am very worried about the credit check.
I don't have any bad marks on my credit. No lates, no liens, no bankrupcy. However, my balances are very high for a reason. Here's the breakdown:
Auto loans (yes living in Boston, my wife and I have cars) : 75000 (which goes away after the move to NY) Student loans: 50000 Personal loans (at 9%): 150000 Credit Card/Revolving lines (most still at 0%): 90000 with a total credit limit of 150000
My current income is about 180k (and wife makes 50k), and the total payment on these are about 6k a month (hefty but not unmanageble), especially I still have substantial amount of cash in hand. The new offer guarantees a total comp of 250k but in NYC.
Here's the reason I have taken out all these loans/0% against credit cards. I want to reserve a significant amount of cash in hand because someone very close in my family has cancer in a pretty much pay for best care country and I wanted to create significant cash buffer for his treatment needs (and certain other members in the family have done the same). I was able to get the balances this big because i effectively applied to different issuer all at the same time before my credit report update.
See the balance sheet isn't that big per se (people my age and income with a mortgage easily show a bigger balance sheet), and there is no real bad marks (my credit score is 610). But the credit card debt and personal loan balance probably give people pause if you look close.
My question is as follow: 1) Do you guys think I am fine as is? 2) Should I bring it up pre-emptively and explain the situation, or do I just not bring attention to it? 3) If not fine as is, but I explain the situation, would I be fine? Should I gather all the documents on the diagnosis?
Thanks in advance.
I feel bad for you. No answer for you though.
bump
bump again
I would document as much as possible to explain your rationale behind your decisions. While high balances do impact scores it has to be something else going on for a score of 610. Based on what I see above you have a total of $365,000 in debt, and regardless of you trying to justify that based on your salary it is indeed some bad decision making.
Regardless of your salary, how in the hell do you have $150,000 of revolving credit with a score of 610? It's noble to help someone in your family, and family is of high priority, but it should not come with a price of sacrificing your own financial soundness.
Not to be a dick, but why the hell do you have 75k in car loans only making 230k total a year (in Boston)?....seems a little excessive
We live in the burbs, so 2 cars is a necessity. Wife and I commute opposite directions. Whatever you save on rent more than pay for 2 cars.
Regardless, I am not here for personal financial advice. I just want to know my situation wrt background check. My questions are exactly as follow:
1) Do you guys think I am fine as is? 2) Should I bring it up pre-emptively and explain the situation, or do I just not bring attention to it? 3) If not fine as is, but I explain the situation, would I be fine? Should I gather all the documents on the diagnosis?
I would SB this if I had any.
Anyone else specifically on the background check?
shameless bump
Maybe more traffic on Monday
you are fine. no one cares unless you have bankrupcy/write-offs/late payments
This may or may not help with your current situation, but assuming you've still got the cash you could pay down the loans before they run the credit check, then draw them down again. Only takes a week or so for your credit score to update. Bigger questions is why do the revolvers need to be drawn in the first place? As long as they're available, draw the cash when/if needed.
The installments are one off. The revolvers are only there as the issuers like it. They can take it away in a second, unless they are drawn, then they can't do anything about it. I didn't want to risk them getting cut, especially as i accumulated more debt, so I drew them.
Do you think it matters for me to pay them down? I don't want to risk losing the liquidity unless it matters to HR.
I have since paid off revolving debt and my credit report now shows 20k of revolving debt as opposed to the previous 90k. Installment/Auto/Student loans remain the same, is the profile substantially better and less likely to trip red flags?
Like someone above said, no one cares unless there is bankruptcy/liens. Also, if you had a hard time not living above your means in Boston, just wait until you get to NY.
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