How to Use a Credit Report to Screen Applicants
The biggest asset that any business will ever have is it employees. Whenever you are looking to hire a new employee, a significant amount of work and diligence needs to be done to make sure you make the right hiring decision. One part of any employee screening process needs to be the review of a personal credit report.
A personal credit report can be used to screen a new candidate several different ways:
Use a Personal Credit Report to Assess Overall Trustworthiness and Judgment
One way that employers will use a credit report to screen applicants is to determine the overall level of trustworthiness and judgment. If the applicant has a long history of accumulating consumer debt and has a history of missing payments, it could be an indication of poor personal financial management. Depending on the position, this could be a red flag.
Checking a Credit Report can Reduce Risk of Theft or Fraud
If the applicant is applying for a position that would involve touching or moving money, checking their credit score is a crucial part of the screening process. Due to the higher risk of fraud, acceptance of bribes, or theft, having an acceptable credit history is a necessity. Those that are in serious consumer debt or have other financial problems are more likely to commit fraud or accept bribes and the credit report will help you to confirm the applicant’s financial position.
A Personal Credit Report Will Confirm Employment History
The third way that you could use a credit report to screen employees is by confirming past employment history. A credit report does not necessarily list all of an applicant’s current or prior employers. However, if the applicant applied for credit and listed an employer on their application, it will be listed on the report. If you notice that there are employers listed that are not on the applicant’s resume, it could be an indication that the applicant chose to withhold prior employment information from you.
TruDiligence is the best around when it comes to running background checks on future hires. Please contact us for more information about any aspect of the background screening process.
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