How credit checks are used by employers

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Employers use credit checks in the hiring process to verify a job candidate's identity, background, and education.

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They also use it to gauge the potential candidate's financial responsibility and overall reliability with money.

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Employers may use credit report information to look for signs of excessive debt or past financial mismanagement.

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Bad credit information on your report could signal the potential for fraud or theft to your potential employer.

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Credit checks are typically conducted for positions that involve financial management or access to confidential info.

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They can also use credit checks to verify employment history, especially if there is missing employment experience.

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Note that not all employers conduct credit checks. It is usually done after a decision to hire is already made.

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Employers must inform the applicant that a credit check might be used as part of the employment decision.

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The potential employer must also get written permission from the candidate to do the background/credit check.

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