Tag Archives: Credit Score

Clearing up myths about background checks

Posted on by
Reply

With the use of background checks increasingly in the news, employees and job seekers across all industries are becoming more wary of what details about their personal and professional histories are being researched, reviewed and used against them during the hiring process.

The vast majority of employers use fair, unbiased measures to help them determine the best applicant for a particular job. But that doesn’t mean there aren’t a slew of misconceptions out there regarding employment screening. Here are a few of the most common misconceptions, which all employers should be aware of as you journey through the hiring process.

Myth 1: Background check policies are the biggest reason the unemployment rate is so high. This is untrue. Background checks do keep the occasional applicant from securing the job, but background check policies are put in place to ensure the best applicants are hired and retained. The goal is to hire, not to keep a position unfilled.

Myth 2: If you have a criminal record, you won’t be hired. While having a criminal record could pose some difficulties during the hiring process, that depends on how long ago the crime was committed, the nature of the conviction, among other things. According to one survey, less than 10 percent of applicants with criminal records are denied employment.

Myth 3: Employers factor in your credit score when deciding whether or not to hire you. Not true in most cases. Credit checks are typically done when the job in question involves handling money and keeping track of finances. Even so, most employers use what’s called an Employment Credit Report, which does not include a credit score.

Myth 4:  Applicants aren’t given a chance to correct or argue findings. Actually, by law employers are required to give job applicants a copy of their background check and allow them to clear up any misinformation.

As with most areas of business, communication is key. Make sure your policies are clearly stated, and strictly followed. And give prospective employees the chance to clear up any misinformation that might have been uncovered during the process.

Use Credit Reports Wisely — and Legally — When Vetting Applicants

Posted on by
Reply

There has been much controversy and buzz surrounding the use of credit reports during the process of conducting background checks for potential hires. Many job applicants are confused about what exactly their credit history has to do with their ability to perform a specified job. Others are wary of too many people knowing their credit score. Still others think that the pre-employment screening process of obtaining a credit report will lower their overall credit score.

Employers need to be clear about why they’re preparing to do a credit check, and they need to get the applicant’s permission to do so, according to the rules of the federal Fair Credit Reporting Act. If the results of the credit report adversely affect the employer’s decision to hire, the applicant is entitled to obtain a copy of their credit report and to challenge anything they see in it that they deem to be false.

Before conducting a credit report, or even asking for permission to do so, employers should ask themselves whether the information contained therein is really necessary for the applicant’s success in that particular job.

Follow VerifyProtect.com on Twitter!

Don’t Let Poor Credit Be the Sole Factor For Determining Employability

Posted on by
Reply

Checking a job applicant’s credit score is among the many ways employers are checking up on prospective employees to get a better idea of their personal history and how responsible they are. Unfortunately, in today’s tough economic recession there are plenty of job applicants out there who are both fiscally responsible and suffering from the fallout of job loss, home foreclosure and mounting debt as families try to stay afloat financially with less money coming in.

That’s why it’s important for those employers who are doing a credit check on their job applicants’ to keep a few things in mind:

1. Does the job the person is applying for deal with company finances, personal information or include a security clearance? Consider whether the job in question would be performed to the same level of professionalism by someone with less than stellar credit.

2. Pay close attention to the rest of the application and the other results from a pre-employment screening that is performed on the job applicant. Nobody likes to be judged on just one aspect of his life, and no job applicant should be judged based solely on a number. Instead let your instinct, careful review of all documents, and the interview guide you.

3. Be aware of the law. It is unlawful to deny someone a job based solely on his or her credit score.

4. If you’re on the fence, be honest about your qualms. Talk to the applicant a little more, and see whether the details and recent life history they give lines up with what you found in your background check.

Follow VerifyProtect.com on Twitter!

Warning to Job Seekers: Pay Your Bills!

Posted on by
Reply

The job market has changed dramatically and that means job seekers have to pay more attention to the way they appear to potential employers than ever before.  They have to dress smarter, have more substantial resumes, be more flexible with employment options and, on top of everything else, keep their credit scores as high as possible.

That last item seems to be difficult for many job hunters, as they’re struggling to pay their bills.  But, like it or not, it’s critical for employee wanna-bes to keep up with their creditors lest they lose a coveted position because of a shoddy credit report.

Of course, some employees a) don’t know this fact and/or b) don’t care about it.  But they should make no mistake — more and more companies are including credit reports as part of their standard new hire background check procedures.

So what should job hunters do?  First, they can get a copy of their credit scores and reports (for free) to make sure they’re in order.  Next, if there are any red flags, they can tell a potential employer upfront so the employer isn’t surprised by the credit report.  Finally, they can aim to increase their credit score by paying bills on time or even working with a financial counselor who can assist them in upping their report.

Above all else, though, job seekers need to realize that how they handle their finances at home could greatly affect whether or not they’ll be offered a job.

  • Subscribe to this blog via email (input your information in the upper right-hand corner to be the first to receive VerifyProtect’s updates)
  • VerifyProtect: Fast, Secure, Affordable Background Checks.
  • Join VerifyProtect on Twitter.

    • What Does a Bad Credit Report Mean?

    Posted on by
    Reply

    Employers are increasingly conducting credit checks on potential new hires, but not all of them understand how to interpret the data.  After all, a credit check report doesn’t equate to simply receiving a credit score; in fact, it’s much more comprehensive… and that can make evaluating it complicated.

    So what does it mean if a potential employee’s background check comes back clean but his/her credit check comes back with “black marks” (figuratively speaking, of course)? 

    Here, we’ll look at a quick way to determine how the credit check data potentially affects your decision:

    1.  Typically, if a person is to have any financial responsibility, you want someone with a squeaky-clean credit check report.  If he/she cannot handle his/her own finances, do you want him/her to handle your company’s?

    2.  If you see that a person owes a great deal of money and will be in a position where he/she can have easy access to your business’s cash, you might want to think twice about making a job offer.  Many cases of embezzlement occur because the embezzler is deeply in dept.

    3.  If you notice that the individual consistently makes numerous late payments (or skips payments), it could be a sign that he/she isn’t dependable.  While it’s not necessarily a total deal-breaker (especially if the late payments were five years ago), you do have to ask yourself if he/she will be late with other items, such as projects and assignments.

  • Subscribe to this blog via email (input your information in the upper right-hand corner to be the first to receive VerifyProtect’s updates)
  • VerifyProtect: Fast, Secure, Affordable Background Checks.
  • Join VerifyProtect on Twitter.