Using Credit Reports For Employment Screening

Equifax has announced that it will no longer allow employers to run credit checks of future employees through their systems. Even though it’s perfectly legal for employers to require a credit check before hiring employees, Equifax has determined that this is not within their business model.

The topic of companies using credit reports as a way to filter out possible new hires has become very controversial these days. The information on credit reports contains highly sensitive information related to finances and money. Employers view the practice as a heighten security measure, not to be taken lightly.

Credit Scores

The credit scores were used as a “risk guage” to determine who would be hired and who would not. For jobs with access to sensitive data or checks and balances related to money, a candidate would have to have a high credit score to get hired.

Equifax is Out

The days of pre-employment screening using credit reports are over at Equifax. They are no longer selling this product type. Don’t be surprised if your credit report is requested to be pulled as part of the screening process during your next job opportunity. It just will not come from Equifax.

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