What is credit history check?
A credit check provides a comprehensive overview of a candidate's credit history, including details on credit scores, payment history, outstanding debts, and any bankruptcies or liens. This information is valuable for evaluating a candidate's financial responsibility and overall suitability, particularly for roles involving financial management or access to sensitive financial data.
Importance of Credit Check
Credit checks are used in pre-employment screening for several reasons:
- Assess Financial Stability :
- Control Risk :
- Regulatory Compliance (where appropriate) :
For roles that require financial oversight, a credit check offers valuable insights into a candidate's financial management capabilities, including their payment behaviour, debt levels, and overall financial history.
In specific industries, a poor credit history may raise concerns about potential financial instability or vulnerability to bribery and other financial misconduct.
Certain industries or roles, particularly those involving financial responsibilities, may be subject to legal or regulatory mandates requiring credit checks.
