4 steps HR teams can take to prepare for an applicant’s Florida employment credit check

In addition to a background check, Florida HR teams may ask potential hires to complete an employment credit check. If the position involves money — like accounting — or intense managerial responsibilities, a credit check can be a good way to determine if a job candidate is responsible with their finances.

Credit checks reveal a lot about an employee’s financial history, including credit history, outstanding loan payments and past employment. Before running an employment credit check, HR teams in Florida can prepare in a few ways. 

4 steps an HR team needs to take to prepare for a Florida employment credit check

  1. Obtain permission from the applicant. 

First and foremost, an employer must let their applicant know that they want to run a credit check. According to the Fair Credit Reporting Act (FCRA), an employer in Florida must legally obtain written permission from the applicant that says performing a credit check is OK. A credit check cannot be performed without the applicant’s permission.

  1. Know the laws. 

While Florida does not limit how far back a background check can go, HR teams must follow federal policies tied to the FCRA. According to the FCRA, debts cannot be reported if they are more than seven years old. Employers must also treat every applicant equally according to the FCRA. Race, religion, sex, age, disability or other demographic factors cannot influence the way HR tetams interpret credit check results.

  1. Know how to look out for red flags. 

HR teams should be sensitive to several possible red flags in credit check results. For example, if the applicant’s employment history on their resume does not match with their credit check, then it can be a sign the applicant is hiding something. HR teams should be prepared to ask clarifying questions when needed.

  1. Keep an open mind. 

Debts and late payments do not necessarily mean that the applicant is irresponsible. One study revealed that an employee’s credit history has no relationship to their performance ratings at work. Prepare to interpret credit check results with an open mind. 

Seeking employment credit check screening services for your business in Florida? The Background Experts team is here to help!

Doing employee credit checks can be frustrating and time consuming. Fortunately, our Background Experts team can take this task off your hands. Our team members have 30 years of combined experience in performing employee background screenings, and we’re fully FCRA certified. We also offer a wide range of screening services that can help HR managers and hiring agents ensure that their potential employees are fully vetted and ready to get to work. 

Contact our team today for more information about our services or to talk to one of our background screening experts.