Your typical applicant screening process likely includes a criminal history check, an identity verification, a drug test, an education history and employment verification, and a work authorization. But have you ever conducted an employment credit report check?
A financial background check can give you a good idea about whether someone is prone to monetary mismanagement and will give you peace of mind that you’re picking the right candidate to handle money matters. Here, we will go over the importance of this process, when it’s necessary and appropriate to check an applicant’s credit report, what’s included in the check, and how you can do so according to compliance regulations.
Why Is an Employment Credit Check Important?
A candidate can tell you how good they are with money until they’re blue in the face, but their credit report can prove it. An applicant’s credit report is a good indicator of how responsible and reliable they are — especially with money. If an employment credit report check comes back showing high amounts of debt, bankruptcy, or general financial turmoil, the candidate may be more likely to commit theft or fraud against consumers or your company as a whole.
When it comes down to it, checking a credit report is a matter of protecting your organization from the risk of financial losses, lawsuits, and/or embezzlement. Having this information will ultimately help you find the best fit for the job.
What Can You Learn From an Applicant Credit Check?
To be clear, a pre-employment credit check will not reveal an applicant’s credit score but rather a summary of their payment history and debt.
An applicant credit check will include:
- Work history
- Past and present addresses
- Names currently and previously used
- Bankruptcy filings
- Payments in collections
- Credit inquiries
- Credit-to-debt ratio
- Liens and judgments
- Payment patterns
Entrust VICTIG With Your Employment History Checks Today
VICTIG is committed to being the best user experience in the industry. With 100% compliant processes, a superior customer service team, and easy-to-use software, we make it easier than ever before to onboard qualified candidates. Breathe easier by outsourcing your employment history checks today.