After paying off his car loan — a financial milestone most people would celebrate — Ren watched his score drop below 700. Now, under the terms of his contract, he fears that it could put his future at risk. But Dave Ramsey insists that's not true.
“You have to look at who’s using this, saying, ‘Listen, if you guys are so corporate and stupid, that the only measure of financial wellness that you have is a FICO score … and you’re calling me financially irresponsible — you’re stupid,” Dave Ramsey said. “When you get up in their grill, they’re going to cave like a Walmart tent.”
The Missouri caller’s concerns raise a bigger question that matters for many workers: Could a credit score actually cost you your job?
Can you get fired over a credit score?
Here’s the nuance: employers or clients cannot access your actual FICO score, though they may request a version of your credit report. And that requires your written permission.
That said, some industries, especially finance, defense and government contracting, do tie employment eligibility to creditworthiness. Companies may use credit reports to evaluate “character” or “financial responsibility,” particularly for roles involving access to sensitive data or money, as in Ren's case.
While rare, these reviews can influence hiring, contracting or retention in regulated fields. So technically, Ren’s client isn’t checking his score but rather his credit report shows closed accounts and a less active credit history, which they could still interpret negatively.
Why did his score drop after paying off debt?
Ren’s frustration comes from an ironic reality: Paying off loans can hurt your score in the short term.
According to myFICO, closing a long-standing account, like an auto loan, reduces both your credit mix and your length of credit history, which make up 10% and 15% of your score.
Ramsey put it bluntly, advising Ren to tell his client, “I have no debt. That is not financially irresponsible, and that drives your credit score down.”
Can explaining it actually work?
Companies often don’t dig into the specifics of credit scoring formulas, but policies vary. Some enforce credit requirements strictly, while others rarely act on them. A 2021 survey found that 48% of employers conducted credit or financial checks.
