Pre-employment credit checks provide valuable insight into employees regarding spending habits and lifestyle stability. Credit reports reveal judgments, liens, bankruptcies, previous addresses, prior employment, variations in their social security number, and possible aliases used.
These are useful for determining financial responsibility, money management, and the possibility of wage garnishment by state or federal tax authorities.
Fair Credit Reporting Act
Fair Credit Reporting Act (FCRA) compliance is required for employers who are using a 3rd party for background checks. In order to protect potential employees, employers must disclose that they’re conducting a credit check and gain written authorization.
You should also comply with strict ‘adverse action’ measures if you make an employment verdict based on negative information in a report. Information gathered in these proceedings is highly sensitive and FCRA compliance is our specialty. Count on us to guide you and take care of the bureaucratic heavy lifting.
Benefits of Credit Checks
Determine financial responsibility, money management, and the possibility of wage garnishment by state or federal tax authorities.
Identify payment history to discover the character and financial responsibility of a candidate.
Identify whether an individual has any bankruptcies and getting an idea of the full picture, or situation.