'They're Gonna Cave Like A Walmart Tent': Missouri Man's FICO Score Dropped And Now His IT Job Is At Risk - What Dave Ramsey Says To Tell His Boss

(MENAFN- News Direct) >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.

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.”

Read more: Here are 5 'must have' items that Americans (almost) always overpay for - and very quickly regret. How many are hurting you?

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.

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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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

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