Getting licensed with bad credit in Ohio

[Qazwsx]

Currently looking to get licensed and appointed by farmers insurance . Will bad credit affect this? I will be working under an already established agent.

 

[Justin Bilyj]

Not sure about captive companies - but bad credit won't stop you from getting your license, but it can affect what companies you can be contracted with. P&C companies can be more stricter than L&H companies...

 

[FutureForbes]

Currently looking to get licensed and appointed by farmers insurance . Will bad credit affect this? I will be working under an already established agent.

Not sure about captive companies - but bad credit won't stop you from getting your license, but it can affect what companies you can be contracted with. P&C companies can be more stricter than L&H companies...

Correct, Like what Justin said, it won't effect you getting a license, Some of the carriers do Credit checks, However I have heard it's to check if any other carriers have ever Vectored you before, or basically brought you to collection for not paying back chargeback, or any lead debt to them.

One other thing is that depending if you are trying to sell Variable Products like Annuities, some states require you do get a Series 7 license, too. And that can make things tricky because at least where I live they require a financial advisor to hire you and sponsor you to get tested for that, and they won't if you have bad credit.

 

[DHK]

One other thing is that depending if you are trying to sell Variable Products like Annuities, some states require you do get a Series 7 license, too. And that can make things tricky because at least where I live they require a financial advisor to hire you and sponsor you to get tested for that, and they won't if you have bad credit.

I'm going to nitpick here, but it's not the states that require that licensing. It's FINRA, as FINRA regulates variable life and variable annuity contracts sales along with local state departments of insurance.

You CAN have bad credit and have securities licensing. However, it would have to be disclosed on your U4 forms - particularly bankruptcy or other credit compromises. And, as stated, you have to be sponsored by a broker/dealer firm in order to take those licensing exams.

However, the worse your credit is, the propensity to make inappropriate recommendations just to maximize compensation - or possibly even commit fraud. This is why bad credit is an issue in financial services. (Although, one would think that if you were committing fraud, that your credit would look better?) But these firms don't necessarily want to take that risk, so that's why it can be an issue.

 

[VolAgent]

First let's take a few steps back.

1. About the only credit factor that matters for licensing is unpaid child support, and that doesn't show up on credit anyway.

2. When it comes to Farmers, are you looking to be an agent with your own office or a staff member for an agent? Being the agent and having your own office will be tougher, and if your credit is bad you are not likely to have the assets needed to get an office up and running. If you are going to be a team member, then it isn't as big a deal. The agent can generally vouch for you and there isn't as much need for capital to get the office going.

 

[HoosierLife]

I love getting those decline emails for my downline agents because of Regulatory Actions! Oh the crazy things you hear!!

 

[FutureForbes]

I'm going to nitpick here, but it's not the states that require that licensing. It's FINRA, as FINRA regulates variable life and variable annuity contracts sales along with local state departments of insurance.

You CAN have bad credit and have securities licensing. However, it would have to be disclosed on your U4 forms - particularly bankruptcy or other credit compromises. And, as stated, you have to be sponsored by a broker/dealer firm in order to take those licensing exams.

However, the worse your credit is, the propensity to make inappropriate recommendations just to maximize compensation - or possibly even commit fraud. This is why bad credit is an issue in financial services. (Although, one would think that if you were committing fraud, that your credit would look better?) But these firms don't necessarily want to take that risk, so that's why it can be an issue.

You learn something new everyday, The other thing I forgot to mention to is Credit now is checked with almost any job that handles ANY type of money. Cashiers and Managers at retail stores now get credit checked because they handle cash everday, exspecially the Managers because they usually have to bring the cash to a bank.

But with your first premium payment and event a blank check for auto-pay, they want to make sure no fraud.

 

[Qazwsx]

First let's take a few steps back.

1. About the only credit factor that matters for licensing is unpaid child support, and that doesn't show up on credit anyway.

2. When it comes to Farmers, are you looking to be an agent with your own office or a staff member for an agent? Being the agent and having your own office will be tougher, and if your credit is bad you are not likely to have the assets needed to get an office up and running. If you are going to be a team member, then it isn't as big a deal. The agent can generally vouch for you and there isn't as much need for capital to get the office going.

I am looking to be a team member under an already established agent .

 

[VolAgent]

I am looking to be a team member under an already established agent .

Then it won't be quite as big a deal. Just make sure your future boss knows and that you disclose it on all paperwork to Farmers. It could be so bad that Farmers won't touch you, but probably not. You'll probably just need the agent to go to bat for you with corporate.

 

[FutureForbes]

I have a friend who worked for a small P&C company and they did a credit check on him because he was customer service and took credit card numbers over the phone for payments.