In the 21st century, job applicants can expect a few things before an employment offer is made that weren’t necessarily standard practice a generation ago. First, a pre-employment offer drug screening is often required, which is understandable. So is a criminal background check. For many, however, the prospect of having their credit and credit history checked is a bit of a headscratcher. “What does credit have to do with performing the task at hand?” you might ask. Here are three common reasons why employers run credit checks.
Verifying Identity
One of the simplest pieces of information credit check services for employers provides is identity verification. In other words, a credit check can quickly and easily show an employer that their prospective employee is who they say they are. That may seem to be a non-issue, but there are sometimes issues with identity theft, child support, or immigration status that cause people to go to great lengths to falsify this information.
Examining Criminal History
It’s possible for some cases of fraud, non-payment, or misrepresentation of identity to slip through the cracks of a criminal background check. They will, however, become immediately apparent through a credit check. Also, there are many things that a credit check will reveal that aren’t crimes but show questionable judgment or behavior. Employers should keep a somewhat open mind (especially if a long time has passed), but recent, repeated issues are a cause for concern.
Determine Trustworthiness
Going a step further, consider this: if you’re hiring an employee who will be handling cash or working with your books, you don’t want someone who has forged or repeatedly bounced checks, do you? Also, while it’s not the full picture of a potential employee, a strong credit score and history usually correlates to a responsible, steady, reliable person. Take this into account along with their personal interview, criminal history, and drug screening.
