A pre-employment credit report can help you make hiring decisions for jobs that have financial responsibilities. Pre-employment credit reports include the information below:
- Accounts in collections
- Bankruptcies
- Debt amounts
- Highest historical credit limit
- Payment history on each account
- Tax liens
Employers can request pre-employment credit reports under the Fair Credit Reporting Act (FCRA). The FCRA sets national restrictions for pre-employment credit reports. Some cities and states have additional restrictions.
You can order credit reports for candidates who will have financial or fiduciary responsibility for your organization. You must state your location-specific “permissible purpose” before a candidate can consent to a credit report. Pre-employment credit reports don’t affect credit scores or show account numbers.
Consumer reporting agencies (CRA) like Checkr provide pre-employment credit reports. Pre-employment credit reports differ from other credit reports in the ways below:
- Don’t have a scoring system, such as a FICO score
- Don’t show account numbers or revolving credit cards
- Don’t affect a person's credit score because they aren't from a financial institution for establishing an account
Ordering
Pre-employment credit reports are available as standalone searches and as add-ons. To add pre-employment credit reports as a standalone search, contact Checkr. Credit report results happen instantly.
To add pre-employment credit reports to your account, contact Checkr. The process of adding pre-employment credit reports to your account requires an onsite inspection from a third party. The third party inspects the offices where you order and review credit reports. The inspection and credentialing process can take 10-14 business days. To keep the package on your account, order at least one credit report each year.
Because credit reports contain candidates’ private information, they should be treated with extreme care. The Equal Employment Opportunity Commission (EEOC) prohibits employers from automatically taking adverse action based on credit reports.
Having trouble ordering a credit check?
Note that in certain states, restrictions exist on using credit information for hiring decisions, which may prevent credit checks. Specific regulations vary by location. For more information, contact Checkr.
Candidate experience
The candidate provides the personally identifying information (PII) below:
- Birth date
- Email address
- Full name
- Phone number
- Social Security number (SSN)
The candidate then reads and acknowledges receipt of applicable forms and authorizations:
- A Summary of Your Rights Under the Fair Credit Reporting Act (FCRA)
- Disclosure Regarding Background Investigation
- Other state and required disclosures as applicable
- Authorization for a background check
After the candidate signs the authorization form, Checkr starts the report process.
If you applied for a job and want to know your background check’s status, log in to the Checkr Candidate Portal.