What is a credit report for employment?
A credit report viewed by an employer for the purposes of hiring is called an Employment Credit Report. This report does not contain the same information that is found on a credit report available to lenders or a personal report requested from a credit bureau.
An Employment Credit Report provides information about a candidate’s credit and payment history. However, a potential employer will not receive:
- A credit score. Unlike the copy of the report available to a candidate, the employer cannot choose to pay extra to see a credit score.
- Account numbers. While the source and type of credit is listed, the specific account numbers are not on the employment version of a credit report.
- A candidate’s age or year of birth.
Why use credit checks for employment?
Many jobs require a high credit score, especially those in which the candidate will have fiduciary responsibility. Some companies require credit reports when hiring highly compensated individuals, and/or individuals in a position of authority. Positions with direct access to sensitive information (computer systems, personnel information, payroll information or accounting information) often require employment-related credit reports. Use of this credit related information gives employers additional facts in the analysis of a job applicant.
What sources does Background Direct® use?
Background Direct contracts to retrieve employment related credit reports from Equifax, Experian and Transunion which are the three largest national credit bureau consumer reporting agencies.
Which packages include an employment credit report?
Employment credit reports are available in our Background Direct Premium solutions to assist employers in gaining a comprehensive view of job candidates.
Employers can build a scalable process to manage the ever-growing global workforce by working with the experienced team at Background Direct. Strengthen your hiring process with our background check solutions.