Credit checks, when included as part of a complete background report, provide insight into an applicant’s integrity and responsibility toward his or her financial obligations.
Some employers only request a credit history for financial positions, but you may want to consider that there may be other positions that could put your company at risk. Here are a few questions to ask yourself when deciding if an employment credit check on a candidate is appropriate.
If you have answered yes to any of these questions, you may want to consider including an employment credit check into the pre-employment screening process.
However, while employment credit checks are a valuable part of an overall background check, it is important to note that it is not appropriate for every job category. Several states have passed laws limiting the use of credit reports and there is movement at the federal level to do the same. Justifacts recommends consulting with legal counsel to determine the applicability of any legislation specific to the use of credit reports for employment purposes.