Dec 9, 2025
Ren, an IT contractor for financial institutions, recently discovered a problem that has little to do with his work performance and everything to do with his FICO score.
He told The Ramsey Show he's involved in security work for banks, and his FICO score is one of the things directly tied to his job.
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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.
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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.
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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.
That means Ren has nothing to lose by being upfront. He could explain major credit changes, especially since his role involves security and financial access. His client may be more understanding than he thinks, particularly if he can show positive indicators like no missed payments and low debt.
If things go south
If they aren't so understanding, Ren could highlight his wins and contributions over the term of his contract, much like he would when asking for a raise.
He should review his contract to see if it clearly addresses the company's right to assess his financial standing. If it doesn’t, it may be worth checking his state's employment rights and making a strong case if the company decides to act. That could buy him extra time to find a new job while still earning an income.
Read More: Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it
The bigger problem with FICO
At its core, Ren’s story exposes the flaws in the FICO system.
“One hundred percent of the elements in the algorithm that create a FICO score are about your relationship with debt,” Ramsey said. “The only way you get a 700 to 800 credit score is you have paid hundreds of thousands of dollars over the scope of your life in interest to a bank.”
In other words, the score rewards consistent borrowing, not true financial health. Net worth, savings and debt freedom don’t factor into the equation.
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With a writing and editing career spanning over 13 years, Emma creates and refines content across a broad spectrum of industries, including personal finance, lifestyle, travel, health & wellness, real estate, beauty & fitness and B2B/SaaS/tech. Her versatility comes through contributions to high-profile clients like Moneywise, Healthline, Narcity and Bob Vila, producing content that informs and engages, along with helping book authors tell their stories.
