Contact us to initiate a background credit history check on a potential employee today. We will tell you what details we need and then we take it from there. You receive a full report at the end of our investigations.
Credit History Check
A credit history check, also commonly referred to as a credit check or credit report inquiry, is a process through which a person’s credit history is examined by a lender, creditor, employer, or other entities to assess their creditworthiness. The credit history is a record of an individual’s borrowing and repayment activities, and it provides insights into their financial responsibility and management.
It’s important for individuals to be aware of their credit history and regularly review their credit reports to identify any inaccuracies or fraudulent activities. Understanding one’s credit history is crucial for financial planning and can have a significant impact on various aspects of life, including obtaining loans, securing housing, and even certain employment opportunities.
Here are key aspects of a credit history check:
Credit Report:
- A credit report is a detailed record of an individual’s credit history, including information about credit accounts, payment history, outstanding debts, and public records such as bankruptcies or tax liens.
- A credit report is a detailed record of an individual’s credit history, including information about credit accounts, payment history, outstanding debts, and public records such as bankruptcies or tax liens.
Credit Score:
- A credit score is a numerical representation of a person’s creditworthiness, calculated based on the information in their credit report. Credit scores are often used by lenders to quickly assess the risk of lending money or extending credit to an individual.
- A credit score is a numerical representation of a person’s creditworthiness, calculated based on the information in their credit report. Credit scores are often used by lenders to quickly assess the risk of lending money or extending credit to an individual.
Purpose of Credit Checks:
- Lending Decisions: Lenders use credit history checks to evaluate the risk associated with lending money. A higher credit score is generally associated with lower risk, making it more likely for an individual to be approved for loans or credit cards.
- Employment Screening: Some employers may request credit history checks as part of the hiring process, especially for positions that involve financial responsibilities. This is more common in certain industries, such as finance.
- Rental Applications: Landlords may use credit checks to assess the financial responsibility of potential tenants. A positive credit history can be seen as an indicator of a person’s ability to pay rent on time.
Information Included:
- A credit history check typically includes details such as the individual’s personal information, credit accounts, payment history, outstanding balances, credit inquiries, and public records.
- A credit history check typically includes details such as the individual’s personal information, credit accounts, payment history, outstanding balances, credit inquiries, and public records.
Soft vs. Hard Inquiries:
- Soft Inquiry: When an individual checks their own credit report or when a creditor conducts a credit check for promotional purposes, it is considered a soft inquiry. Soft inquiries do not impact the credit score.
- Hard Inquiry: When a potential lender or creditor checks a person’s credit report as part of a credit application, it is considered a hard inquiry. Hard inquiries can have a temporary impact on the credit score.
Credit History Check
Running a background check on a candidate’s credit history is a requirement of the hiring policy of many companies. How an individual has handled personal consumer finance in the past reflects character, integrity and reliability.
Performing a background credit history check is now a very common requirement when hiring. Many company’s nowadays, and not just those in banking or financial services, look at how well a candidate has handled personal finances in the past. They believe that a poor track record of personal consumer finance may indicate weaknesses in other areas. Some also fear that it may reveal security vulnerabilities too. A credit history check mitigates unnecessary risk.
The Krib Information Services background check uses information stored by consumer credit reference agencies and other financial sources. The objective is to establish whether or not the individual has a clean credit history or has what is considered a poor track record in consumer finance.
Compliance with legal and regulatory requirements
In many sectors and in various countries, running a background check on an employee’s credit history is a legal requirement. It is mandatory for any new hires.
International credit history coverage by Krib
Once we know what countries the individual has resided in we can access the appropriate public domain records in those jurisdictions. That will reveal and bankruptcies, financial litigation or other debt issues in the individual’s past.
Available sources of information and the legislation governing their access and usage, varies from country to country.