Screening ServicesCredit Checks
Credit Check For Employment
Manage risk by taking a deeper look into your candidate’s credit report and financial history.
Trust & Safety
Why Employment Credit Checks Matter
Reviewing your candidate’s credit history provides insight into a candidate’s integrity and responsibility toward his or her financial obligations, and are recommended for positions where access to financial assets, transactions, and decisions are a primary responsibility. Benefits of employment credit checks include:
- Reduced risk of negligent hiring lawsuits, theft, or embezzlement
- Clear picture of a candidate’s financial responsibility
- Ability to make informed decisions based on reliable records
Results
Credit Checks For Employment: What Gets Reported
Credit background checks for employment show a record of a person’s credit-to-debt ratio and past bankruptcies, providing insight into how someone has managed credit and bill payments in the past—an important indicator for positions where the employee will be handling or managing money. While credit checks for employment do not report credit scores, results may include:
- Names and addresses of current and previous employers
- Notifications of bankruptcies
- A record of the individual’s credit and payment history
- Any unpaid bills turned over to a collection agency
- Other credit inquiries that have been made on the candidate
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Compliance
What You Need To Know When Running Employment Credit Reports
Employers must follow the federal Fair Credit Reporting Act (FCRA) when running employment credit checks, including disclosure, authorization, and consent requirements. Employers must also follow the adverse action process when deciding not to hire based on information in a credit report. Learn how GoodHire’s built-in compliance workflows can help.
State & City Laws Also Apply
Several states and a few cities like New York and Chicago have restrictions on how employers can use employment credit checks in hiring. Typically, the use of credit history is prohibited unless the employer or employee falls into special categories, such as an employee who would:
- Handle large amounts of money
- Work in a managerial capacity
- Have access to trade secrets
- Work in a field (such as financial services) in which regulations require credit reports
FRCA
The FCRA and state regulations dictate how far back and what specific information an employer will see. Learn about your state’s laws.
Easy to Get Started
Employers Must Be Credentialed First
Before running employment credit checks, employers must first meet specific eligibility requirements set forth by the FCRA. The process generally takes 3-5 days, and in some cases may require an on-site inspection to verify your business, which requires a one-time fee. GoodHire’s step-by-step workflow will take you through the process. Get started running credit checks in three easy steps:
