- Jul 31, 2021
One of the factors which go into the hiring process today is the employment credit check. This is a relatively new component of the hiring process. Here are a few things you should be looking for on the employment credit check.
At first glance, you might think an employment credit check is all about looking into a candidate’s financial life. The real reason why credit checks are used in the hiring process, however, is to double-check facts such as residency. A person’s credit report cannot be faked. It is an official snapshot of their information. This makes it a great way to double-check things like where they have lived.
Many employers like to use the credit check just to make sure that the information which was given on the application or during the interview matches up.
This is also an easy way to ensure that someone is in fact a US citizen. If being a US citizen is essential in your hiring process, you can use this tool.
One of the most important ways you can use a credit check is to check your identity. Again, the credit report cannot be faked. The credit report also tracks people for a long period of time. If you find any types of discrepancies on an applicant’s credit report, you need to take it very seriously. When a person falsifies information concerning their identity, it is more than just a red flag. It is often an indicator of illegal activity.
Double-checking information on the credit report can help you to identify someone engaged in illegal activity before they are caught. For instance, a criminal background check will only tell you about illegal activities in a person’s past once they were caught and punished. If they haven’t been caught yet, the criminal background check could come back clean even though they are currently involved in illegal activities. Double-checking all of the information shared with you with an employment credit check is just one more way you can safeguard your business.
Obviously, the credit report will hold a great deal of financial information as well. In some cases, this financial information can be relevant to your decisions concerning a new hire. In cases in which the applicant is applying for a job that deals with money, you are going to want to make sure you are hiring someone who handles money well. If the credit report reveals that the person cannot even handle their own personal money well, it could be a strong indicator that they will not handle company money well.
The credit report can also reveal to you if someone is in apparent financial distress. Financial distress can have a huge impact on a person’s decision-making abilities. Even if you are dealing with someone who has never been involved in illegal activities or has never mishandled money, financial distress can sometimes drive people into these behaviors.
The employment credit check is just one more way you can screen potential new employees to make sure you are getting the best team members for your company.