Employment Credit Report are useful tools when attempting to determine the level of an individual's responsibility and trustworthiness. It is widely known that banks use credit reports to decide whether or not an applicant will be granted a loan, but did you also know that credit reports may be used by employers when evaluating if a job applicant is properly suited for the position they intend to fill?
Contrary to popular belief, the types of credit reports used by financial institutions are different than those used for employment. Employers can request what is called a "PEER" or Pre-Employment Evaluation Report. These PEER credit reports are unique from traditional credit reports in the fact that they do not include a score.
Pertinent and often sensitive financial information, such as:
Such positions may include:
Due to the sensitive nature of the information contained within a PEER credit report, the credit bureau that furnishes the information requires additional vetting of the requestor beyond that which is necessary to set up an account with Backgrounds Online.
These extra steps are purely precautionary to ensure the end user is a legitimate business and has a permissible purpose to perform credit checks (rather than an identity thief pretending to be an employer in order to steal people's personal information).
Requirements for credit report access:
Before any background check is performed, the subject of the report must first give authorization by signing a release form. Typically, Backgrounds Online does not require a copy of the authorization be provided to us during checkout. Credit reports are a special case, however, and before we can fulfil any order for credit information, we must first have a copy of the signed release on file. Releases can be uploaded online during checkout, via the Report Manager or sent to our office via fax or email.
Many states impose their own rules and limitations on the use of credit reports for employment purposes. For example, California has a special release form specifically for credit reports. This release, along with other vital documents and forms, can be found in your Backgrounds Online Resource Center.
Some examples of state-specific restrictions include: