Why are Credit Reports used in Employment Background Checks?
Posted: Jan 17, 2011 09:18 am
The majority of applicants consider the importance of their resume, their previous job experience and performance, and skill-set when they are job hunting and applying for a job. However, very few think about the quality of their credit reports and scores. In fact, more and more employers are performing credit checks when they conduct background checks on their potential employees.
Employers do not want to leave any stone unturned when it comes to determining the quality of the candidate’s character and whether or not they are a good fit for the job. Credit checks have become an essential part of the process, similar to employment history, educational records, and the checking of references.
A bad credit score or report does not indicate that a person has a bad character or even that they will be a poor worker. In reality, a poor financial history may even make a better worker as they are more determined to never be in financial dire straits again. Despite this, employers will often not be lenient when it comes to this. Therefore, they consider credit reports during the hiring process. Some employers may well view a poor credit report as a red flag, particularly when it comes to companies that are finance-related or will require their employees to use company credit cards.
Although it is far more common for employers to analyze the credit report and score of employees who will be responsible for finances for the company, credit checks are not only done in these circumstances. In fact, numerous industries utilize credit checks as part of their background check process. It is not limited to financial positions such as those in accounting forms, CFOs, and CPAs.
Although the employer has every right to include credit checks in background checks, they have a responsibility to inform any applicants that they plan on doing so. The FCRA or Fair Credit Reporting Act requires that the employer obtain the consent of the applicant before they obtain your credit information, report, and score. If an applicant for a position is not given the job and the reason for this is based on the credit report, the employer is required to provide the candidate or applicant with a copy of their credit report. They will also provide the individual with information by which they can obtain a free credit report copy.
In order to obtain a copy of your credit report visit http://www.mybackgroundcheck.com/CreditReports.aspx To obtain more information regarding background checks and the impact of the credit check on this process, you can visit mybackgroundcheck.com for more important information.
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