Conduct a Credit Check for Employment Purposes
When to use this flowchart
Use the Conduct a Credit Check for Employment Purposes flowchart to determine how to obtain and use a credit report when making employment decisions.
The Fair Credit Reporting Act (FCRA) regulates how a credit reporting agency (CRA) handles credit information and provides individuals with the right to access and correct inaccuracies in their credit reports. It also protects the privacy of credit information and gives consumers rights when an employer uses information in a credit report for decision-making purposes.
This flowchart walks an employer through the major steps to take to help limit the risk of FCRA violations when conducting a credit check.
- Is a credit check appropriate?
- Is the employer requesting an investigative consumer report?
- Certify compliance with FCRA.
- Is employer considering an adverse employment action?