Why are Credit Reports Important for Background Checks?

Credit Reporting Services Baltimore

When hiring employees, many things come into play, including running back ground checks for credit reports. Under the Fair Credit Reporting Act, employers are not required to conduct credit reports for employment background checks but it may be wise for you to run credit reports on potential employees as well as current employees.

It is important that all credit reports are conducted by an external company to ensure your company complies with federal law. Under the Fair Credit Reporting Act ( FCRA) , you must be authorize by the job applicant to perform the credit report background check. This document should be separately given to the job applicant from other documents included in the job application. You should give the job applicant a pre-adverse action disclosure that offer the job applicant the option to see a copy of the credit report. The adverse action notice will provide you information on where to mail or contact the applicant so he/she can review the report. The adverse action notice will clearly state that your company did not conduct the report but a third party company performed the credit report. This gives the job applicant the opportunity to dispute any inaccuracy or incompleteness about information filed on the credit report.

It is wise to run credit reports on job applicants because it can help you identify the level of responsibility you can give the job applicant if he/she is hired. When employees are not reliable for paying their own bills and handling their personal responsibilities, it says a great deal about their work ethic. Bad credit reports can work against job applicants. You will want the most reliable and talented workers handling your most important business needs.

In fact, you can continue running credit reports on people you hire long after they have been hired to help you make tough decisions when it comes to promotions, retentions and transfers.

Air-Pre Hire can properly handle your Pre-Employment Background Checks. We want to help you make the most informed decisions when it comes to hiring employees.

Air Pre-Hire conducts  accurate and verified universal background screening  so you will have thorough background checks on your employees. Here at Air Pre-Hire we don’t simply check the basic information, we dig deep to identify inconsistencies and make sure your potential employees ( as well as existing employees) are acceptable for hire. This is the human element of our custom pre-screening service. You can count on us for timely, verified pre-screening and employee re-screening.

Learn more by visiting our website www.air-prehire.com or calling us at 1-800-469-4473.

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