Quick guide to Credit Checks

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Financial Hiring Trends Report of 2023

While pre-employment credit checks have long been required for compliance in financial and legal roles, credit checks have become commonplace in many companies, with employers reporting that they now routinely carry out credit checks as part of a comprehensive background screening process when recruiting for all positions.

credit background check
Credit background check

The type of searches used in pre-employment checks are called Soft Searches, and will confirm the candidates name, date of birth and address history as well as electoral roll status, CCJs or IVAs, missed payments, bankruptcy, and house repossessions. The information available to potential employers through a soft search is much less detailed than that which is available to creditors through a Hard Search.

financial probity check
Financial probity check

To differentiate from pre-lending checks carried out by creditors, employers often use terms such as adverse financial, financial probity or consumer search to describe pre-employment credit checks, and despite Soft Searches being carried out through the same reporting companies (Equifax, Experion etc), employment credit checks don’t leave a mark on a candidates credit file.

Pre-employment credit checks are a useful tool in mitigating the risk of fraud, by uncovering bad financial situations, and although a positive credit check doesn’t guarantee that a candidate is trustworthy, it might bring up red flags which could cast doubt over a candidates suitability for a role which requires access to data, money, company accounts or assets. In addition, a bad financial situation might impact a candidate’s behaviour at work and a solid credit report might indicate that a candidate would make a responsible staff member.

credit reference check for employment
Credit reference check for employment

Credit checks also help ensure that candidates are who they say they are by confirming important information found in other checks.

bad credit and employment background check
Bad credit and employment background check

A specialist pre-employment screening company can help ensure that credit checks are thorough and effective. Veremark carries out comprehensive credit checks against all linked addresses, all previous names and aliases, and all addresses linked to aliases, to ensure that candidates are unable to conceal details of bad credit by omitting previous address details.

Pre employment international credit check

Requesting a check is simple, candidates must provide consent to employers carrying out the credit check, along with full name and title, date of birth and current address, with this information the check can begin.

Veremark completes credit checks in as little as five days, and our checks result in a full report which can be added to the Veremark Career Passport for easy sharing of data and protection through blockchain.

Veremark - International background check software


What background check do I need?

This depends on the industry and type of role you are recruiting for. To determine whether you need reference checks, identity checks, bankruptcy checks, civil background checks, credit checks for employment or any of the other background checks we offer, chat to our team of dedicated account managers.

Why should employers check the background of potential employees?

Many industries have compliance-related employment check requirements. And even if your industry doesn’t, remember that your staff have access to assets and data that must be protected. When you employ a new staff member you need to be certain that they have the best interests of your business at heart. Carrying out comprehensive background checking helps mitigate risk and ensures a safer hiring decision.

How long do background checks take?

Again, this depends on the type of checks you need. Simple identity checks can be carried out in as little as a few hours but a worldwide criminal background check for instance might take several weeks. A simple pre-employment check package takes around a week. Our account managers are specialists and can provide detailed information into which checks you need and how long they will take.

Can you do a background check online?

All Veremark checks are carried out online and digitally. This eliminates the need to collect, store and manage paper documents and information making the process faster, more efficient and ensures complete safety of candidate data and documents.

What are the benefits of a background check?

In a competitive marketplace, making the right hiring decisions is key to the success of your company. Employment background checks enables you to understand more about your candidates before making crucial decisions which can have either beneficial or catastrophic effects on your business.

What does a background check show?

Background checks not only provide useful insights into a candidate’s work history, skills and education, but they can also offer richer detail into someone’s personality and character traits. This gives you a huge advantage when considering who to hire. Background checking also ensures that candidates are legally allowed to carry out certain roles, failed criminal and credit checks could prevent them from working with vulnerable people or in a financial function.

Transform your hiring process

Request a discovery session with one of our background screening experts today.

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