Employment CREDIT CHECKS and Monitoring Employment CREDIT CHECKS and Monitoring
Employment CREDIT CHECKS and Monitoring

Protecting Your Company's Finances

Credit reports are considered by many to be an indication of a candidate’s integrity, stability and trustworthiness. Banking, finance, security, public safety and pharmaceuticals are just a few industries that rely heavily on credit reports when making a hiring decision.

Credit checks are an important component of employment screening for some jobs. But discretion should be used and we explain why below. If you’re unsure if you’ll need this service our team will help you determine if it’s necessary.

Overview of Employment Credit Checks

Credit checks for employment purposes are typically conducted through one or more of the three major U.S. credit bureaus (Experian, Equifax, and Transunion). They differ from those done for credit scoring purposes. Employment credit checks won’t include a score, nor do they count as a formal inquiry against a candidate’s credit report.

What’s Included on an Employment Credit Report

Information included on the applicant’s credit report and which is permitted for employment purposes includes:

  • Public record information, such as bankruptcies, tax liens, and civil judgments
  • The number of derogitory or unpaid accounts that are in collection
  • The number of open accounts – loans, credit cards, etc.

Additional credit history information is also included to form a well-rounded, objective overview of your candidate. A 7-year credit search and a 10-year bankruptcy search are standard. But the time frame follows the guidelines allowable by the FCRA.

Limitations of Employment Credit Checks

The use of credit information in employment screening is limited by location, or to specific job positions. Our Compliance Library is kept up-to-date with this information and all customers have full access to it. Our compliance team is also up-to-date and ready to provide advice to customers whenever needed – by phone or email.

Limitations have been imposed by several states and cities. They’ve enacted laws and ordinances restricting the use of a candidate’s credit history. In those locations, most often the use of credit is prohibited except for specific positions, such as law enforcement, corporate executives, or those with fiduciary responsibilities.

See How Credit Checks Fit Into Your Screening Program

Schedule a 30-minute demo and we'll explain how employment credit checks might be able to save you money and help you hire better.

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