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What Your Business Should Know About Employment Credit Checks

What Your Business Should Know About Employment Credit Checks

What Your Business Should Know About Employment Credit Checks

A credit report can provide your company with a lot of potentially useful information about a prospective employee. For instance, it can help you verify an applicant’s name, address, and other identifying information. It can also help you determine if an applicant is responsible with money, which may be important to know if you’re hiring that person for a role that involves handling cash. Let’s take a look at other information that might be important before you conduct an employment credit check.

Is a Credit Check Necessary?

Employment credit checks are most commonly used for those who are applying for positions of authority within your company. They should also be used for those who may run a cash register, make deposits, or otherwise have control over your firm’s money.

Do You Have the Authority to Conduct an Employment Credit Check?

Local, state, or federal regulations may limit your ability to run a credit check on an applicant. In some cases, it may not be possible to do so until after a job offer has been made to that person. It’s also important to note that you can only take this step with the written consent of the individual you are learning more about. It may be in your best interest to consult with legal counsel prior to obtaining a copy of a candidate’s personal information.

What Happens If the Credit Check Is the Basis for an Adverse Action?

Let’s say that a credit check reveals that an applicant could pose a security risk if he or she is hired. In such a scenario, you must let that person know that this was the reason why he or she was not chosen for a given position. Furthermore, you must provide a copy of the report that you obtained as well as who provided the information that you gleaned from it.

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