Conduct a Credit Check
When to Use This Workflow
Use the Conduct a Credit Check workflow to determine how to obtain a credit report on a job applicant while ensuring that the employer remains in compliance with the Fair Credit Reporting Act (FCRA) and state law.
Employers may choose to conduct credit checks on job applicants when they apply for positions that are relevant to an employee's credit history or credit worthiness, such as employees who handle money or who monitor financial transactions. However, some states restrict an employer's ability to conduct credit checks.
This workflow is valuable for employers to address the common scenarios in which to conduct credit checks on job applicants and the ways in which HR professionals should consider an applicant's credit history as part of the application process. Following this procedure will enable employers to properly conduct credit checks and use the information they obtain in a legally compliant manner. It will also help employers avoid the risk of FCRA-related penalties, as well as lawsuits or enforcement actions for improperly acquiring or considering an applicant's credit history information.
- Request job applicant's written consent
- Is the job financially related or does it involve handling sensitive data in a regulated state?
- Does credit report reveal poor credit history?