In today’s information era, background checks are commonly performed by employers that yearn to know about the people they’re investing in. By executing background checks, you can secure higher employee retention, hiring high-quality staff who fit with your company culture.
Adding employees to your presently constructed team presents business risks, which you can overcome by verifying information via a background check. Pre-employment screening makes the hiring decision easier for recruiters.
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Whether you’re a recruiter or prospective employee, you can stay one step ahead of the curve if you’re aware of the information background checks show. There are many background check sites that can uncover a mass of information about any one individual.
So what can you expect from a background check? Let’s delve a little deeper and find out:
What Does a Background Check Show?
Well, it largely depends on the type of search you’re conducting. There are multiple sets of records and data to pull from. Generally speaking, a background check will bring up information like employment verification, identity verification, credit history, driver’s history, education, criminal records and more.
These can be used to form a profile on a candidate’s character while safeguarding your organization from harm. Let’s picture a hypothetical situation to bring clarity to the situation. Imagine a company onboarding a new staff member without performing a background check. The new employee is trained and integrates with the team, but down the line attempts to illicit sensitive information for personal gain.
A background check could have revealed a criminal history of similar behavior. However, as things stand, employee wellbeing would be in jeopardy, feelings of mistrust will cultivate and you will have lost time and resources in the process.
All of this could have been avoided by performing a simple background check. The potential for outcomes like this incentivizes recruiters to take preventive measures, rather than reacting once it’s too late.
Here are some of the most common background searches:
Identity and Social Security Verification
One of the first and arguably the most important step for an employer is to verify an employee’s identity. After all, can you imagine the repercussions of hiring someone with a fake identity?
Organizations search across extensive databases to uncover Social Security Administration records, for example looking at the Department of Homeland Security. A simple background check will indicate whether a Social Security number is valid, a foundation from which further searches can be executed.
Verification can be used to confirm your address, which can be cross-referenced with the information you provide to confirm the validity of your initial claim.
Credit Report
Credit reports are prepared by credit bureaus. Information can be collected upon request, drawn from various sources like credit card companies and other financial institutions. These distribute information to credit bureaus, who collate information on consumers for public records.
The categories of information which can be accessed by credit reporting agencies include:
- Identifying Information
- Credit Inquiries
- Date of Birth and Address
Credit reports also contain a list of past financial institutions, credit inquiries, identifying retailers and other lenders that have requested a consumer credit report under similar circumstances.
It will reveal tradelines information, which shows the accounts you’ve established with other lenders. The searcher will uncover account information, the type of account in question, the account’s current balance, borrowing history and the loan amount or credit limit.
Credit reports may also show previous bankruptcies, unveiling warning signals on applicants who can’t be trusted in a particular role. If you’re an employee seeking a new job role, it helps to know the type of information an employer will find out about you, and how it might influence the hiring decision.
High levels of debt or excessive spending will indicate financial irresponsibility, so as an employer it’s handy knowing that this information will be revealed before executing your background check.
Criminal Records
This is a critical step for recruiters, where negligent hiring can lead to legal complications, especially when it’s deemed you should have run a background check in advance. A criminal background check will safeguard owners from legal liability. It’s important you discover the history of criminal convictions as a preventive measure, rather than putting staff in jeopardy by failing to find out more in advance.
When conducting a criminal check you’ll reveal the following information:
- Misdemeanor convictions
- Current pending charges
- Acquitted charges
- Dismissed charges
- Felony convictions
Frequently Asked Questions on Employee Background Checks
Here are FAQ questions on employee background checks:
What information is typically included in a background check?
A standard background check can reveal various pieces of information about an individual’s history, depending on the type of check conducted. Most background checks include criminal records, employment history, education verification, credit history (for financial roles), and identity verification. Employers often use background checks to confirm that job applicants have provided accurate information and do not pose a risk to the company. Additional details, such as driving records, drug test results, and social media activity, may also be included based on the employer’s requirements. The extent of the background check depends on the industry, job role, and local regulations.
How far back do background checks go?
The time frame for background checks varies based on the type of check and state or country regulations. For criminal records, most states in the U.S. follow the seven-year rule, meaning felony and misdemeanor convictions older than seven years may not appear. However, some states allow reports to go back indefinitely, especially for high-level positions or jobs in finance and healthcare. Employment and education verification typically cover a person’s entire work and academic history, while credit checks usually report activity from the last seven to ten years. Employers should always review state and federal laws to ensure compliance when conducting background screenings.
Do background checks show dismissed or expunged records?
In most cases, background checks do not show expunged or sealed records, as these are legally removed from public access. However, if a record was dismissed but not expunged, it may still appear on certain background checks. The ability to see these records depends on the type of background screening conducted and state laws. Some jurisdictions restrict the reporting of non-conviction records, while others allow access depending on the industry. If a job applicant has had a record expunged, they generally do not need to disclose it, as it is treated as though it never existed in legal terms.
Can an employer see my credit history in a background check?
Yes, but only under specific conditions. Employers in certain industries—especially finance, banking, and government positions—may request a credit report as part of a background check. However, they do not see a full credit score. Instead, they receive a modified report that shows outstanding debts, payment history, bankruptcies, and financial red flags that could indicate risk. The Fair Credit Reporting Act (FCRA) requires employers to obtain written consent before accessing an applicant’s credit history. Some states have also placed restrictions on the use of credit reports in hiring decisions, particularly for non-financial positions, to prevent unfair discrimination.
How long does a background check take, and what can delay the process?
The length of time for a background check varies depending on the type of check being conducted and the level of detail required. A standard employment background check usually takes three to five business days, while more complex checks, such as FBI fingerprint screenings or international background verifications, can take one to several weeks. Delays may occur due to incorrect or incomplete information on the application, backlog issues with state or federal agencies, difficulty verifying past employment or education records, or additional screenings required for specialized roles. Providing accurate details and responding quickly to employer requests can help speed up the process.
