The Importance of Credit Checks in Hiring

The Importance of Credit Checks in Hiring

Have you ever considered running credit checks on your job applicants? Maybe not. After all, you might feel that your employees’ financial histories have no effect on their work performance.

However, credit checks can tell you important things about job candidates. And they might even help you avoid some major problems.

The Dangers of Debt

Most people in debt are, of course, honest and law-abiding citizens. But, high levels of debt or other financial issues could be a concern for employees in certain industries. The role that the employee has within your company and how much of that role requires the handing of company funds is one of the biggest factors that you should consider. 

If people are irresponsible or inefficient with their own funds, how well could they handle your company’s funds? Would you trust them with responsibilities that involve large amounts of company funds if they’re unable or unwilling to manage their personal finances?

A strong credit reports can indicate dependability and financial acumen, but the biggest item to stress here is whether or not the employee needs to handle significant amounts of the company’s funds or not. 

Obtaining Credit Reports

What data will your credit checks show you? Well, you won’t see any credit scores. But you could get notified about unpaid bills, past bankruptcies, payment histories, and ratios of credit to debt.

Note that, if you run a credit check on an applicant, you must give that person a copy of the report.

Also, be sure to look at the credit check laws in your state and municipality beforehand. Some places don’t let employers consider credit histories when making hiring decisions.

Credit Reports From Private Eyes Background Checks

At Private Eyes Background Checks, we’re renowned for the speed, precision, and accuracy of our information.

When we conduct a credit check, we partner with one of the three major credit repositories — which are Equifax, Experian, and TransUnion — to deliver fast and error-free results.

In the end, you want to form fair impressions of all your job candidates: their professional qualifications and their personal qualities. And a credit check can be a revealing tool in that crucial process.

Have questions?  Speak to a Private Eyes expert for more information.