How to Read an Employment Credit Report

Understanding the PEER Report

Verified First provides Pre-Employment Evaluation Reports® (PEER) through TransUnion. It is important to note two key factors for both employers and candidates:

• Soft Inquiry: This search is a "soft inquiry," meaning it does not impact the candidate's credit score.
• No Credit Score: Unlike standard consumer reports, employment credit reports do not include a FICO or credit score, as these are not typically used for employment purposes.

An employment credit report is a specialized version of a standard credit report, modified for pre-employment screening. It provides a snapshot of a candidate’s financial responsibility and history without including a credit score, as scores are generally not used for employment purposes.

Report Header & Status

At the very top of the report, you will find the Product Name (e.g., Employment Credit Report) and the current Completion Status.

• Verified First Information: The top right section contains Verified First’s contact details. This is crucial for candidates who may need to dispute information or ask questions about the reporting process.
• Order Details: The middle section lists the order date, report date (last update), and any reference or cost codes applied to the file.

Subject (Applicant) Information

This section contains the Personal Identifying Information (PII) provided by the candidate or the HR user. Key details include:

• Name and SSN: The individual's full name and the last four digits of their Social Security Number.
• Address History: Current and previous addresses.
• Employment Data: A history of reported employers.

Credit Summary

The Credit Summary offers a high-level overview of the information collected in the report. It allows you to quickly see the total number of accounts, balances, and any major red flags before diving into the granular details.

Public Records Section

This section is primarily used to report bankruptcies. It is important to note the different retention periods for these records:

• Chapter 7 Bankruptcy: Generally remains on the report for 10 years from the filing date.
• Chapter 13 Bankruptcy: Generally remains on the report for 7 years from the filing date.

Collections

Collections represent accounts that are seriously past due and have been turned over to a third-party collection agency. This section will list the original creditor, the collection agency, and the current balance owed.

Trade Accounts

The Trade Accounts section provides a detailed look at the candidate's credit accounts, such as credit cards, mortgages, and auto loans. This typically includes:

• The name of the creditor.
• The type of account (e.g., revolving or installment).
• Payment history and current status (e.g., "Paid as Agreed" or "30 Days Past Due").

State-Specific Disclaimers

Depending on the candidate's location, you may see specific legal verbiage below the header. These disclaimers ensure the report complies with local and state-specific fair credit reporting laws.

Support and Disputes

If a candidate identifies an error on their report, they should contact Verified First directly using the information provided in the report header. For more detailed information on credit reporting standards, you can also refer to the TransUnion Guide to Reading a Credit Report.

FAQs

Q: How do I read the "Payment Patterns" section?

A: Think of this section as a timeline of your candidates payment history. Each character represents one month, starting with the most recent:

• Blank: The payment was made on time.
• Numbers: These indicate how late a payment was (e.g., 1 is 30–59 days late, 2 is 60–89 days late, etc.).
• X: Data is unavailable or was not reported for that month.
  
   

Q: What do the colors on the Trade Accounts signify?

A: Trade Accounts are color-coded to give you a quick "health check" on your candidates accounts:

• Yellow: The account is Current and up to date.
• Red: The account is Past Due and requires attention.

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Disclaimer: This document is for educational purposes only and does not constitute legal advice. We recommend consulting with your legal counsel to review your specific hiring policies and job descriptions.

The information and opinions expressed are for educational purposes only and are based on current practice, industry related knowledge and business expertise.