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Credit

What does a credit check contain? It will disclose every place where a candidate for employment has lived and also applied for credit, such as applying for a credit card, car loan, personal loan, or home loan.  If a candidate for employment lived in a community and didn’t apply for credit, that community will not show up on the credit report.

A credit report will contain a summary of how much money is owed on credit cards and bank loans.  It will show credit limits, civil litigation involving credit, collections, and bankruptcies.  It will also show past-due or late payments on credit cards or loans.  In addition, it will show the type of loan, terms of payment, and how much the payments are.  A credit check will also disclose if any other credit checks have been requested on the candidate for employment.

Not all of this information will be relevant to a prospective employer.  The purpose of this blog is simply to point out what credit reports contain.

In summary, should a credit check be run on every candidate for employment?  No, only if the position to be filled requires it or if there is a valid reason to believe that money problems will have a negative effect on overall job performance.  If neither concern applies, doing a credit check, as previously noted, is a waste of time and money, in my opinion.