Last Updated on March 9, 2024 by Britt Olizarowicz
If you are considering joining a country club, there are some steps in the joining process that you may not be aware of, namely, the credit check. Some people feel joining a club can be a bit cumbersome and intrusive, but there is a good reason for that. As a former membership director at a private country club, I can tell you that not running credit checks is a problem for current members, staff, and even future members. Let’s take a look at why country clubs do credit checks.
Why Do Country Clubs Do Credit Checks (TLDR)
Need the quick facts on why country clubs do credit checks – here you go:
- Golf clubs are more secure when they have financially responsible members
- Country clubs will work with you on a case-by-case basis, but they may have you pay more upfront if your credit score is poor.
- Credit checks to join a country club can seem intrusive; if you fully intend to pay all of your club bills, this process shouldn’t bother you.
- Some clubs will ask for financial statements or to meet certain net worth requirements if you have issues with credit.
- Refusing a credit check could mean you are not accepted into the club.
Country Club Credit Checks – What You Should Know
Country clubs do credit checks to ensure that all members are in good financial standing before they join the club. Most country clubs allow members access to the club for the entire month and then bill them for any fees after the fact. This leaves them in a vulnerable position for trying to collect on this spending.
Dues and initiation are often paid upfront. However, there is still a lot of damage that can be done when country club members do not pay their bills.
Let’s say someone takes advantage of a membership special, joins the club, and racks up $5000 in golf, dining, and pro shop expenses in the first month. When the bill comes at the end of the month, the country club can have a really hard time collecting.
Most clubs will have information in a place that allows them to charge interest on past due balances, but many times, this money is just lost. The person who created all the expenses moves to a new club.
What Credit Score Do I Need To Join A Country Club?
A credit score is a constantly changing number. In addition, it is not the only way to show that you are financially credible.
Country clubs typically do not set a number that is required from a credit score standpoint.
Instead, they may take your credit score into consideration with the rest of your application.
For instance, someone may have a credit score that is a little low but on its way back up. This person may offer to pay ahead of time for expenses. Some clubs will allow you to leave a credit on your account.
There are ways to work it out with some country clubs.
Others are strict and take credit scores to indicate how you live.
Will A Country Club Perform A Background Check?
Country clubs will often perform a background check and a credit check before your application for membership is accepted. The background check is often waived for those who have sponsors.
If you have five current members signing off on your current membership paperwork, the club may skip a background check. Other clubs have had issues in the past and remain strict.
In the end, finding a list of rules/requirements that will keep you out of a club will be hard. Most membership directors and boards work with you on a case-by-case basis.
Do I Have To Pay For A Country Club Credit Check?
The country club will pay for the credit check. There could be an application fee to join a club. However, this is usually more about processing fees and the time to input you into the system. Application fees are rare for high-end country clubs. Chances are that the $75,000 initiation fee you pay has an application fee in there somewhere!
How Often Do Country Clubs Do Credit Checks?
Country clubs only do credit checks when you join the club. Remember that anytime you have your credit checked, it can start to count against you.
One of the negatives or “hits” on a credit report is too many inquiries.
If you are a member of a country club in good standing, there should be no credit checks. If the club decided to run one, they would have to let you know.
Can You Negotiate When Joining A Country Club?
One of the questions we are asked the most about joining a country club is whether or not you can negotiate.
My answer to this is quite simple: you have to try.
Of course, the club can simply say no, but in some instances, you may get a deal of some kind.
Most importantly, membership deals must be run through a board or a committee. The membership director may want to help, but they work for the club. Joining incentives help make it a little easier to pull the trigger on that initiation fee.
If your credit score is bad, you may want to hold off on the negotiating and instead make sure that your application is accepted. One of the best ways I’ve seen to get around these credit issues is to offer to prepay.
You will pay your dues and initiation fee but give the club an extra $1000 to hold on to for your expenses incurred each month. In addition, leaving a credit card on file is smart.
The key is to show the country club that even though your credit report may show issues, you still have plenty of great things to offer as a club member.
What Can Make You Fail A Country Club Credit Check?
Chances are you have a good idea as to what your credit score currently is, but you may want to check on it yourself before you fill out your country club application.
Negative account information, improper payment history, missed payments, bankruptcies, and foreclosures can all impact the total score.
In addition, for younger country club members, a lack of credit history can also cause you to fail a country club credit check.
If you should run into this situation, you may be able to use a sponsor or a letter of recommendation.
In the end, much of this depends on the current health of the country club. When clubs need members, they may be more lenient. If the country club has reached maximum capacity, they will turn you away.
Does A Country Club Need To See My Financial Statements?
Country clubs are often private entities, and because of that, they are allowed to ask for the documents that they want. If you don’t want to show these documents, you don’t have to.
Some country clubs will have a minimum net worth they require.
This can include having to show some financial statements. However, it can also be as simple as getting a letter from your financial advisor.
Country clubs take these things seriously because it only takes one bad egg to make a mess of the club.
Final Thoughts
The process of joining a country club takes a bit of planning. As you can see, country clubs do credit checks to ensure that the club remains in good financial health for years to come. The wrong people can take advantage of a country club and get them into a bad financial position; these credit checks will help.
