Pre Employment Credit Check

Can an individual’s financial history impact their job performance?

When a person’s history of financial responsibility is important to the position you’re hiring, a pre employment credit check can be a valuable background screening tool.

A 2006 survey by the Society of Human Resource Management indicated that 43% of the Society’s members ran credit reports on potential employees. These employers use credit history to gauge an applicant’s level of responsibility, the premise being if an applicant is not reliable in meeting financial obligations they are less likely to be a reliable employee.

Although there is no way to discern for certain if an applicant will be a good employee based only on their credit check report, this perspective on a candidate can help narrow your selection task and increase your odds of finding a productive and engaged staff member .

Best Practices of an Employment Credit Check:

Employment credit reports can be particularly useful for positions that deal with cash or valuables, positions involving national security or FDIC clearances, employment with a state or local agency, and positions requiring supervisory, managerial, professional, or executive responsibilities at financial institutions.

Rules Apply to Employment Credit Checks:

While employment credit checks can be useful, it’s also important to understand the rules that apply to an employer’s use of credit reporting information in the selection process. These rules bring certain limitations that employers must be aware of. For example:

• The Fair Credit Reporting Act requires that you obtain written permission from your applicant before running a credit check.
• While you may use delinquent payment history information as a reason to take adverse hiring action, you may not use bankruptcy information to discriminate against an applicant.
• All new accounts require an on-site inspection of the end user’s place of business by a third party inspection agency.

As with all background checks, if you plan to use an applicant’s credit information to deny employment, you must first provide the applicant with a copy of their credit report and an explanation of their rights under the law. And, after the adverse action is taken, you must provide the applicant with contact information of the credit reporting agency that provided the information (i.e. Proforma Screening Solutions), along with instructions on how to dispute the information in the report. Proforma provides FCRA compliance fulfillment to meet these pre-adverse and adverse hiring requirements.

Turnaround Time:

Instantaneous

List Price:

$8.50

Get Started:

NOTE: List price represents our standard pricing. Please contact us to build a custom package with discounted pricing for your business. Request a Custom Proposal

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