Many people can be under the impression that credit checks are only used when applying for loans, mortgages, and credit cards, but this isn’t the case. Although credit searches are used by those wanting to borrow money, they’re also used to verify a person’s identity and establish whether they’re the right fit for a job role.

The following is an overview of how credit searches are used when applying for a job and how credit history can affect employment.

Why Credit Searches are Carried Out

There can be many instances when those applying for a role aren’t always doing so for the right reasons. A business must undertake several checks to ensure Data Protection is maintained and the company is protected.

In addition to verifying a person’s identity, employers and organisations can also use them to check that a person is responsible with money, which can be essential when applying for a job involving finance.

If a good credit score is a role requirement, a business will typically make this apparent during its hiring process. However, those with any questions regarding background checks should reach out to the company before making an application.

Does Poor Credit History Affect Employability

A poor credit search may not look great, but it doesn’t always mean an employer will deny a job offer. However, if a person has stated the credit is flawless on the application, only for a credit report to show otherwise, this could be deemed dishonest.

As such, those unsure of their current credit score should obtain credit reports from Experian, Equifax, and TransUnion and ensure all the information is current.

Although each agency will give a realistic outlook of your credit score, obtaining a report from each ensures you have all the information regarding your financial history and allows you to make sure all the information contained on each is correct.

Can a Credit Search Be Carried Out at Any Time?

Companies who run a credit check as part of the job application will make applicants aware of this during the hiring process. Permission is needed to carry out a credit check, so a company can only request them after this is granted.

If regular background screening is a requirement for the role, then the business will explain this process. For example, although an employee may not need continuous credit checks, staff may require regular DBS Checks.

How Long Does a Credit Check Take?

Credit checks can often be completed in as little as two days, but there can be instances when the process takes longer. When the process takes longer, it can often be because the person cannot be located by the information given, so additional documentation is needed.

In addition to requesting the documentation, businesses will also need to ensure the documentation is genuine. Fortunately, this can be done immediately when using an external professional agency.