When considering a new background screening provider, it’s crucial to understand how different types of checks might impact an individual’s credit score. As a prospective client seeking a comprehensive, fast, affordable, and legally compliant service, understanding these nuances is key.
Employment Credit Checks vs. Tenant Credit Checks
- Employment Credit Checks:
- Impact on Credit Score: Generally, employment credit checks do not affect an individual’s credit score. These are considered “soft inquiries” and are primarily used to verify financial responsibility, particularly for roles involving financial transactions or sensitive information.
- Contents of the Report: This type of check typically includes a detailed financial history, including account statuses with current and past creditors, bankruptcies, and civil judgments. However, it does not provide a credit score or date of birth (DOB) information.
- Tenant Credit Checks:
- Impact on Credit Score: Tenant credit checks are often considered “hard inquiries” because they are used to make a credit-based decision—approving a housing application. Such inquiries can impact an individual’s credit score, usually by a few points.
- Contents of the Report: These reports provide a comprehensive view of an individual’s credit history, including account statuses, bankruptcies, financial civil judgments, and crucially, the applicant’s FICO Credit Score.
Compliance with FCRA and Local Laws
A reputable background screening provider ensures that all checks, whether for employment or tenancy, comply with the Fair Credit Reporting Act (FCRA) and relevant state and local laws. This compliance is vital for protecting the rights of the individuals being screened and ensuring that the data used in decision-making is accurate, timely, and obtained legally.
Conclusion: Choosing the Right Screening Partner
In conclusion, while background checks are a necessary tool for risk mitigation, it’s important to partner with a qualified consumer reporting agency like EDIFY Background Screening. With our experience and technology, we can conduct thorough background investigations efficiently and affordably, ensuring compliance and minimal impact on credit scores. Trust EDIFY Background Screening to provide you with comprehensive, fast, and legally sound background check services.