Learning Center
Five Best Ways to Do a Background Credit Check
A background credit check report is often carried out
when employers need to hire for positions involving financial responsibilities. The Fair Credit Reporting Act (FCRA) regulates the situations when a background credit check can be used for employment selection purposes. Basically, you can run a background credit check if the position involves exercising financial prudence or handling large sums of money. If the position does not ask for such responsibilities, as an employer you must be very careful.
There are two basic types of a background credit check:
consumer credit reports and investigative consumer credit reports. Along with the written report regarding the subject’s background credit check, the latter type also includes interviews from friends and neighbors. However, a written notice must be given to the applicant before carrying out an investigative background credit check. If you have a legitimate business need and you wish to conduct a background credit check, you have various potential alternatives at your disposal for getting the information you want.
Information continued below Easy Search Form
1. State or county records. Each credit report partially contains information retrieved from public records. Filings such as tax liens, arrest and conviction records, and bankruptcies,
which are relevant for a background credit check,
can be taken from the correct town or city where the record is stored. Most of the times, the information you need for a thorough background credit check will be available at the county or state level.
2. Reporting agencies. Certain reporting agencies can
run a complete background credit check
on businesses from their directory. Although this is generally only an overview of the information needed for a background credit check, it can give you valuable data to begin with. These condensed reports can include information on tax liens, bankruptcies, lawsuits, judgments, payment trend behavior and so on. However, you will usually have to pay a one time rate for the information you’re offered.
3. Do some legwork yourself. Go check the appropriate register of deeds office in your locality, as well as real-estate mortgage records, courthouse records etc. You can also interview former coworkers, and family members of your applicant. Be ready to ask polite and direct questions and to listen carefully. Make notes of everything you
find out and use them afterwards for your background credit check.
4. Uniform Commercial Code Filings. This could be
relevant for a background credit check
as UCC allows a creditor to notify other creditors about the assets of a debtor. Usually, the creditor does this by filing a financing statement or a public notice with a certain filing office. You can do a background credit check by going through these filings using online information brokers or other public record websites.
5. Online search agencies. There are many information brokers which offer public record information
for a quicker and smoother background credit check.
Be sure to use a respectable agency, such as www.BackgroundSearch.com. If you decide to go this route, you can do an instant employment background credit check that will return information not only on UCC filings, but on many other aspects relevant for your employee’s background credit check.
Easy Search Steps:
- Enter name in search form
- Search hits are displayed for free
- Select person(s) & info you need