Nearly 96% of surveyed HR reps reported that they conduct background checks before hiring employees. But did you know that credit checks for employment can offer crucial protection too? Credit checks, which include a person’s credit history and verify a candidate’s identity, can help employers avoid conflict and employee fraud. Credit checks can also help employers see how a candidate might handle responsibilities in the workplace, before they’re hired.
What credit checks for employment can tell employers about candidate responsibility
A potential employee’s recent credit history can suggest whether they are responsible enough for the job they’re applying for. Results of a credit check can communicate several things to an employer, including:
- The candidate can keep track of their finances.
While unforeseen life events can complicate personal finances, a pattern of poor credit history can be concerning, especially if the candidate is applying for a position in finance. A series of outstanding debts can raise red flags. If a candidate can’t seemingly keep track of their finances, then it might indicate that they won’t keep track of responsibilities at work. On the other hand, if a potential employee has consistently made payments toward their loans, then an employer might interpret it as evidence for responsibility.
- The candidate can take time management seriously.
Credit deadlines can be overwhelming, especially if the candidate has many lines of credit. Several late payments can indicate that they might eventually struggle with managing deadlines at work. Meanwhile, a pattern of on-time payments can indicate that the potential employee takes deadlines seriously.
- The candidate can commit to a long-term position.
Some credit checks for employment can offer employers information related to a candidate’s employment history. It can be concerning if the candidate has recently been employed at several places back to back. It can indicate that they may not be ready to commit to a full-time, long-term job offer. However, life events can complicate employee history. The employer should ask the potential employee to clarify patterns of concern.
Seeking credit check services for your business? The Background Experts team is here to help!
Doing credit checks for employment 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, credit checks and more, 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.