Consumer Credit Report
Although checking a candidate’s credit history is highly recommended for anyone who is applying for a financial position, it also lets the employer know how responsible the applicant is with their personal finances.
The truth is simply this; if a person has serious credit issues and can’t pay their bills on time or even at all, do you really want them working for you? The logic behind this is, if a person has a poor credit history, the propensity to steal from you, the potential employer, increases. You have the right to know who to put in a position of trust. There is a misconception that checking an employee’s credit worthiness is an invasion of privacy’ this is not so anymore.
A pre-employment credit report a potential employer receives is much different than one seen by an individual or creditor, the inquiry made is considered a “soft” inquiry which will have no bearing on the applicants FICO score. More and more, employers are requesting this search in addition to a typical criminal background checks. This nationwide check can reveal a great deal of information about an applicant, such as tax liens, bankruptcies, items placed for collections, late payments and charge offs.
All employment credit checks are conducted in full compliance with the Fair Credit Reporting Act (FCRA) and all applicable county, state and federal laws. This search is recommended for any applicant that will be handling cash, such as point of sale cashiers, or accounts payable/receivables clerks that will have access to company credit card information or client credit card information. We also recommend running this search on anyone that has access to sensitive information such as social security numbers, date of birth, or client login information. Just like any other search conducted for pre-employment purposes the FCRA requires that a signed release and disclosure form be completed by the applicant.
