News

Category: FCRA

Credit Reports Used for Hiring Purposes

By Sandra Shinn
April 09, 2014 Category • Credit Report, FCRA, Credit Check

The use of credit reports for hiring purposes can be confusing and the information overwhelming. Credit checks have been used as an acceptable means by which to conduct pre-employment screening for the past 40 years. The implementation of the Fair Credit Reporting Act (FCRA) can make the process of conducting credit checks a little more difficult to understand. The Pre-Check Company aims to answer several commonly asked questions! 1. What kind of information do credit reports provide? Credit reports show employers an applicants summary of balances, payment history, liens, judgments, bankruptcies and official inquiries. An employer must have written approval of an applicant before conducting a credit check. 2. What is the FCRA and why is it important? The FCRA was enacted in 1970 and regulates the collection of credit information and access to a consumers credit report. It is important because it ensures fairness, accuracy and privacy of the personal information contained in the files