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Credit Check For a Job in Canada

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Although it is common for the creditors and lenders to check the credit report, do you know potential employers also check credit reports too? Employers usually perform a credit check as part of a full employment background check. It includes things like a criminal record check. It is important to understand what a potential employer will see through a credit check and what they will look for in a credit report of a potential employee.

What information may an employer see during a credit check?

Although your credit report contains a lot of information, potential employers are worried about certain details that other users of your credit report may overlook. When conducting a credit check, employers will often be able to examine the following information:

Payment History: This section contains details such as missed and on-time payments.
Credit History: This covers information like the accounts you’ve opened, when they were opened, the total amount you owe, credit limit overages, and the total debt you owe.
Credit Inquiries: Creditors and anyone who have requested a copy of your credit report within the last three years.
Public Records: Public records include bankruptcy and credit-related court decisions against you. Debts owed to collection agencies, as well as other personal information found in public records.

Why Do Employers Perform Background Checks?

In recent years, credit checks for employment have grown in popularity in Canada. If you work in the financial sector, you should expect to be subjected to a credit check. Banking, insurance, finance, and accounting are all part of the financial industry. In general, any work that involves money will require an employer to assess an employee’s financial ability, which is why a credit check may be required.

Credit Checks Are Required For Certain Federal Employees

Credit checks are now required for all levels of security screening, according to the federal government. This credit check is used to determine a person’s reliability in terms of meeting financial obligations. Certain pressures or financial responsibilities may provide a security concern, which the credit check is intended to mitigate.

Can I be turned down for a job because of my credit history?

While it may appear unjust, an employer might refuse you a job based on your credit history. However, keep in mind that credit checks are not performed by all employers; they are most popular in the banking sector and the government. Furthermore, employers cannot check your credit without your permission; make sure you read everything you agree to find out if a credit check will be conducted.

Consider immediately bringing up your credit history

If you’ve had credit problems in the past, you can tell your employer about them to make the best of the situation. Admit to your possible employer that you’ve had credit troubles during the interview and do your best to explain that it was a brief, but difficult, moment in your life. Also, mention that you’ve been working hard to maintain a spotless record and that you’ve moved on from your problems.

Discrimination in the Job Application Process

The Canadian Human Rights Act contains extensive information on how human rights and employment practices interact. According to the Act, no one can be discriminated against because of their:

  • Race
  • ethnic or national origin
  • Religion
  • Sex
  • Sexual preference
  • Age
  • Relationship status
  • Relationship status
  • Disability
  • Criminal offences pardoned
  • Criminal offences on hold.

Because background checks will reveal personal information about a possible employee, it’s crucial to understand what they may and cannot consider when deciding whether or not you’re the ideal candidate for the position. Unfortunately, credit history is not included in the above list, which implies that an employer can refuse to hire you because of your credit history.

Check Employer’s Policies Before Agreeing To Credit Check

Before agreeing to a background check, inquire about the nature of your possible employer’s background checks. Before the background check procedure begins, ask your employer the following questions.

  • What kind of information will be examined during the background check?
  • What kinds of offences can cast a negative light on a candidate for this position?
  • Will the background check include a review of my social media or Internet presence?
  • How important are records that have been purged or sealed?
  • Will the background check go back in time?
  • Is a financial history analysis part of the background check?
  • What exactly do you look for when it comes to financial history?

Credit checks are commonplace not only with lenders but also with specific companies. Consider what employers will notice on your credit record when applying for jobs and be sure to completely grasp your potential employer’s background check process.

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