The Use of Credit Reports in Employment Screening

When you intend to attain the most qualified candidates for a position, it’s important to use credit reports. In the modern-day, you are allowed to have a look at a limited version of the candidates’ credit reports. This is because these reports give a clear and deep perception of an individual’s financial state. Indeed, it is valuable in verifying the information provided by a candidate.

Most employers conduct background checks on all the employees that they hire with nearly 30% of the employers checking credit reports.

What exactly do you look for in credit reports and what do you intend to achieve? Below are some of the reasons why employers use credit reports in employment screening.

To Ascertain the Trustworthiness of Candidates

If an individual applies for a job, there is a high likelihood that you will look at their finances. Any failure by the individual to honor previous financial obligations is a potential sign of irresponsibility and is likely to negatively impact on his or her selection for the position.

For Purposes of Verification and Security Clearance

A credit report is used in employment screening for verification purposes and for security clearance. Also, you use the reports to compare the information provided on the application. This aids in verifying the candidate’s identity and helps in preventing any cases of employment fraud. Therefore, next time you receive applications for a job there is a need for you to inform the candidates to crosscheck their credit reports. This ensures that all the information is accurate as this improves their chances of getting hired.

However, it is important for you to be aware of the fact that you cannot check the candidates’ credit reports without their consent. Besides, you do not have access to the full report because doing so might lead to violation of laws regarding equal employment.