When was the last time you had your background checked? This is usually done for employment purposes or if you are applying for a loan, you can expect the loan institution to conduct an inquiry for your credit score. Even us ourselves we do our very own background checks once in a while even though we really don’t realize that is what we are doing. In short this is a very common practice and is deemed necessary.
Let us talk about the 3 most common background checks that are implemented for 3 different purposes:
This is the check that is conducted to verify the legibility of the claim of your credentials that you have placed on your CV. Some people do try to make their CV more attractive just for a chance for interview but this can actually cost you the job if you happen to be found lying. Some employers would go as far as checking your criminal records but using this against you by denying you of the employment opportunity for that sole reason is unacceptable.
This is something that financial institution does in order to determine on how they are going to hand your loan application. You can expect that your credit report will be requested from either or all 3 major reporting agencies (TransUnion, Equifax and Experian). This way the loan company can get an idea on the items that have been tagged under your social security number over the years. The most important thing that this will indicate is the interest rate (if you get approved) for the loan. A good credit rating can result to thousands of dollars in savings. It is also worth noting that if you have too many inquiries under your name then this could actually bring your score down.
This is the check that is done by the insurance company you are trying to work with for your car insurance. What this determines is pretty much straight forward, it is basically checking out if you are more of a risky client. It is more of a plain practical thinking to charge higher premiums to those who are more likely file a claim. Think of it as an incentive on the other hand if you keep your records clean. As long as you have no points on your license and no unpaid traffic tickets then you are good to go.