Credit checks have been used in the financial sector (where it sometimes is a legal requirement) on new hires to flag up any adverse financial history before they join the company; this has become increasingly common across other sectors as well.
A credit check is used to help defend the business and its reputation against employee fraud. By advertising the fact that your company carries out the important pre-employment screening checks, you will often put off a fraudster applying for the role in the first place.
However, even with a clear credit history, it can be worrying to a candidate when the process has not been explained properly to them. Below shows some information that can be helpful and settle the minds of those getting checked:
The credit check will NOT affect your credit score
The credit check will only show adverse data, no payment details are disclosed
The electoral roll is used to confirm the candidates current address
An adverse credit history does not automatically disqualify you – The employer may want to discuss circumstances around any data that is brought to light, along with any payment arrangements and then make their decision.
Being transparent is very important; therefore it would be useful to check your credit report before beginning your job search.
At Matthew James Consulting, our credit checks take a maximum of 4 hours once the candidate has sent us the required information (full name, date of birth & address history).
The reports are ‘real-time’ reports so this service can be used on a regular basis to continue the security of your company and check if an employee’s circumstances have changed. In many cases companies have chosen to do an annual credit check of the entire workforce.