What’s the Deal with Credit Scores?

When it comes to scores, people tend to ask why differences exist between each of the credit bureaus, including the major national players, Equifax, TransUnion­, and Experian. Even though their scoring models are top secret, the variations likely stem from one simple fact — not all companies report to all three bureaus equally or for the same reasons. In other words, some end up not having all of the information. 

VerifyProtect offers a wide array of thorough employment screening services, including a detailed analysis of an individual’s credit history and financial standing, to help you make an informed decision in the hiring process. Today in our informative blog, we will shed some light on the confusion surrounding credit scores.

How Credit Scores Work

It is important to understand that credit scores do not fit neatly into one box, nor do they serve only one purpose. According to the Consumer Financial Credit Bureau (CFPB), an official website of the US government, companies use credit scores for mortgage loans and auto loans, tenant screenings, credit cards, acquiring insurance, and to check the financial history of prospective new hires. “Each credit score depends on the data used to calculate it, and it may differ depending on the scoring model,” per the CFPB. People tend to pull a credit score used for one purpose and question why it’s so different from the score for another purpose. This is why.

Comparing Scoring Models

FICO and VantageScore are two widely-used but very different scoring models. However, both are utilized by employers to evaluate the credit history of job applicants, and for good reason. As detailed by Fortune, “Both scoring models range between 300 and 850” and evaluate factors such as “payment history, amount of credit used, length of credit history, and more.” To learn more about each model and to better understand how each is calculated, click here.

Employment Credit Screenings

An increasing number of employers are requiring credit screenings for new hires. This is especially true for those looking to fill management positions and other roles that may require the handling of company funds. A thorough credit screening of a job applicant can give the employer some insight as to how financially responsible the individual has been. At VerifyProtect, we offer in-depth credit screening services that are specifically designed for use in pre-employment checks. Our credit screening services will search for and reveal:

  • Address history
  • Collections history
  • Civil judgments
  • Bankruptcy filings
  • Tax liens and more…

If you’re in the process of hiring a new employee or even considering an existing employee for a significant promotion, we recommend taking advantage of our credit screening services. Please note that state law requires that you obtain explicit permission from an individual prior to conducting a credit screening on his or her identity. For more information or to get started, give us a call at (888) 219-4945, or click here to send a message. 

VerifyProtect delivers first class Employee Background Screening services nationwide. We save you time with fast, personal service and unquestionable results, utilizing advanced technology, and reviewed by a trained professional, not an AI bot. Our experts will ensure that your background check program integrates seamlessly and affordably into your hiring process. Visit WWW.VERIFYPROTECT.COM today to learn more!

Kristina Taylor
In 1989, Kristina began her career as a customer service representative at the newly formed American Tenant Screen, Inc. Ten years later, she pioneered tenant background screening on the Internet. As a long-standing member of the National Multifamily Resident Information Council (formerly the National Association of Screening Agencies) Kristina gains insight into the trends of the tenant screening industry to better understand the current and future needs of their clients.

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