If you are considering applying for employment, there are some new trends you should know about. One is that more companies will conduct a credit check for employment. This is a soft inquiry on your credit report, which means your score is one of many factors in your employment prospects.
Background checks are coming to terms with hiring from afar
Considering a plethora of job-searching software available in the cloudy reaches of the interwebs, this is not the wrong time to view the best of the best a la carte. After all, you might be interested in a job that pays the bills. Of course, there’s no guarantee you’re not tasked with the lion’s share of a household budget, which isn’t bad. Besides, it’s about time you spent some good old-fashioned quality time with your spouse, girlfriend, or whoever it is. To do so in style, you’ll need to learn proper etiquette. Luckily, the modern-day workforce is a lot more tech-savvy than its predecessors. The good news is that you’ll be a happy and well-fed a.
Employer credit checks generate a soft inquiry on your credit report
An employer credit check does not affect your credit score. However, it may impact your credit history. This is because soft and hard inquiries are recorded on your report.
When you apply for a loan or a new credit card, you will be asked to complete a credit application. If you are rejected, your employer will be notified. As part of the process, your employer will receive a copy of your credit report.
Your credit report will contain your current score and information on any credit inquiries made in the past two years. Any adverse actions you’ve taken or negative details on your report will be explained in an adverse action notice.
Your employer will also receive a modified version of your credit report. It will include information about the credit inquiry and why it was denied.
In some states, an employer credit check is not allowed. In those states, it can be used only for a specific purpose.
Ban the box legislation is a new trend in background checks
Ban the Box legislation is a nationwide movement to remove the question about criminal history from job applications. It is designed to advance opportunities for job applicants with criminal records.
These laws have been passed on both the state and local levels. Depending on the locality, the “Ban the Box” or Fair Chance hiring policies may have different requirements.
In some cases, the Fair Chance laws require that the employer consider qualifications for the position first before looking at the applicant’s criminal background. Others allow for a discussion of the applicant’s criminal history as a part of the interview.
There are also provisions in the law that prohibit employers from requesting criminal background information until after a conditional offer of employment has been made. Some states have stricter adverse action requirements than the federal Fair Credit Reporting Act.
Several private corporations have paid substantial penalties for non-compliance with these laws. Employers should review their hiring practices to ensure they comply with these laws.
