Credit Report
Financial Background
May Provide Present and Past Address
May Provide Current and Past Employers
May Provide A.K.A.'s
Verifies the Users of the S.S.N.
Credit reports used for employment background check purposes are not the same as a standard credit report. The Fair Credit Reporting Act (FCRA) specifies that certain account information must be stripped from the employee background check credit report before it can be used for employment purposes.
This information is received through an online connection with a National Credit Bureau. The credit bureau verifies Social Security Number information through the Social Security Administration. The SSN will be verified along with the presence of bankruptcies, judgments, foreclosures or collection items, and the minimum and maximum range of credit reported from the credit accounts the person holds.
Employers seek credit reports on job applicants for a variety of reasons. Some employers utilize a credit report to verify that an applicant is responsible and reliable or to confirm identity.
An employer should first determine if there is a sound business reason to obtain a credit report. Unless the information in a credit report is directly job related, its use can be considered discriminatory. For example, running a credit report for an entry-level person with low levels of responsibility or no access to cash is probably not a good practice.