Through our integration with various credit bureaux, Procheck conducts a full investigation into the candidate’s credit history. Any matters of concern will be detailed in our confidential report, together with details of any actions or sentences.
If there is evidence of the candidate’s involvement in any civil lawsuits, the relevant documentation will be obtained from the courts and incorporated in our report.
Why do employers check credit history? Employers use credit reports to judge how responsible you are and to determine how financially stable the potential employee is.
Liens - Any type of lien against an employee could be a sign of irresponsibility. It suggests to employers that you weren't responsible enough to pay off your debt or negotiate a settlement.
100% Credit Utilization - This shows employers that you're in over your head and can't stick to a budget.
Bankruptcy/Foreclosure - Again this shows a lack of responsibility with things you're committed to. To an employer this could suggest that you'll bail on large projects and aren't resourceful enough. It also may suggest that you don't have long term visibility.
Recent Late Fees - Recent 30, 60, or 90 day late fees show finances are causing you significant stress. This activity may appear as more of a red flag for financial positions because it suggests you have trouble budgeting.
Significant Activity - A recent opening of several new accounts or closing of several accounts could appear as a red flag. Significant new activity may trigger employees to think you are desperate and need extra credit because you are in over your head. Closing several accounts could appear as a sign that you aren't good with money and don't know how to avoid charging up a large sum of debt.