Finance

4 Important Things a Person’s Credit History Can Tell You About Them

A given company or business is like a chain. It’s only as strong and effective as its weakest links, so hiring the right people is critical. However, knowing you’re serious about building a reliable team populated by responsible, hardworking, honest individuals is one thing. Successfully identifying the best candidates during the hiring process is another matter entirely.

Everyone is on their best behavior and tries to put their best foot forward at a job interview. And even honest people sometimes do things like lie on their resumes, exaggerate when talking about their strengths, and downplay things that may make them look less than their best. Good hiring managers know how to get to the bottom of things regardless, so running a credit background check as part of the standard hiring procedure is always a smart move. Here’s a closer look at what it can teach you about your next crop of job candidates.

  1. How Responsible Someone Is

If there’s one trait you want in pretty much anyone you hire, regardless of their would-be position, it’s responsibility. Someone’s credit information can’t tell you everything about how responsible they are or aren’t, but it can certainly give you a decent idea.

Someone who uses credit responsibly and takes a “no matter what” approach to making their payments on time is likely to have that same attitude toward other essential principles in life. They’ll be more likely to do whatever’s necessary to honor work obligations, meet tight deadlines, keep promises, and follow through with commitments.

  1. How High a Fraud Risk They Are

It’s a common misconception that only seedy, immoral people do things like embezzling money, commit fraud, or steal things that don’t belong to them. If circumstances are dire enough, even an honest person who’s never screwed up before could be moved to make a wrong decision that lands them in hot water right alongside you and your company.

Checking someone’s credit history can give you some insight into whether that ideal job candidate you just met with might be too good to be true. Excessive debt or a high percentage of available credit used can mean the person’s struggling financially and may be close to reaching a breaking point.

  1. Whether You Can Trust Them With Money

Many open positions call for a candidate who can be trusted with money, sensitive data, and other critical assets. It’s not unheard of for someone to be highly responsible and reliable in some areas of their life but not particularly good at managing money. A credit check can give you some insight into whether that’s the case for someone in particular.

Inconsistent payment habits, especially when paired with a tendency to spend exorbitantly, can indicate an impulsive personality who doesn’t always think clearly when it comes to money. You don’t want someone like that in charge of company funds or important consumer information.

  1. How Forthcoming They Are

Although any job candidate will be focused on making a good impression, some will be a lot more forthcoming than others. Honest candidates disclose things they know you need to know, even if they also know it doesn’t paint them in the best light. They’re only human, so of course, they’ll present information in the best possible light, but they’ll still give you frank, forthright answers to your questions.

Precautions like background checks and credit checks can help you get a read on how honest someone was during the interview process. How does the information in their report stack up against what they told you during their interview? Is there anything that’s at odds with what their resume or references are telling you?

At the end of the day, anyone can make a bad judgment call on someone’s character. But when your company’s future and your customers’ security are on the line, you can’t afford to make such mistakes. Hiring the wrong person can easily lead to nightmares like lawsuits, theft, legal violations, and so much more. A simple credit check is all it takes to drastically reduce the likelihood of these things happening, so it’s worth your while to explore the possibilities. Get started today!

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