Why do employers want to check your background and/or your credit? It could be for one of several reasons. If government security clearances are required for the job you are interviewing for, an employment background check may be required.

Why Employers Conduct Background Checks

The employer may want to make sure you are telling the truth. It's estimated that up over 40% of resumes can contain false or tweaked information, so, employers want to insure that what they are getting in an employee is what they were promised.

The employer may perform a background check to find out whether you actually graduated from the college you said you did or to confirm that you worked at your previous employer(s) during the time stated on your resume or your job application.

What Information is Included in a Background Check

Background Check Information
What's included in an employee background check?The Fair Credit Reporting Act (FCRA) sets the standards for screening for employment. The FCRA defines a background check as a consumer report. Before an employer can get a consumer report or run a credit check for employment purposes, they must notify you in writing and get your written authorization.

What's Released During a Background Check?
Future employers sometimes do a background check as part of the hiring process, and there's some information that cannot be disclosed without your consent. See what information isn't released during a background check.

Employment History Verification
Your employment history includes all the companies you have worked for, your job titles, the dates of employment and salary earned at each of your jobs. An employment history verification is conducted by an employer to confirm that the employment information included on your resume and/or job application is accurate.

How Employers Conduct Background Checks
Employment background checks are being conducted by employers more frequently than in the past. That's for several reasons. Here's why and how employers conduct background checks for employment purposes.

Job Applicant Credit Checks
Companies are running credit checks on job applicants and employees being considered for promotion often and are using that credit information as part of the process when making hiring decisions. Here's advice on what companies can check and how it can impact hiring.

Drug Tests
There are several types of drugs tests that candidates for employment may be asked to take. Hiring can be contingent upon passing pre-employment drug tests and screenings. Review information on employment drug screening and how it impacts hiring.

What Employers Can Say About Former Employees
One of the questions I get asked frequently is "What can an employer say about former employees?" Some job seekers presume that companies can only legally release dates of employment, salary, and your job title. However, that's not the case.

Criminal Records and Background Checks 
Laws vary on checking criminal history depending on your state of residence. Some states don't allow questions about arrests or convictions beyond a certain point in the past. Others only allow consideration of criminal history for certain positions.

What's In Your Credit Report
What's in your credit report and why is it relevant to employment? What's in your credit report can hamper your job search and it can be grounds for knocking you out of contention for a job. Especially when it comes to jobs where money and financial information is involved, bad credit can be an issue.

Why Employers Check Credit History
Employers can, with the permission of the job applicant or employee, check credit history. Here's the credit information that is available to employers.

Employment Verification
When hired for a new job, employees are required to prove that they are legally entitled to work in the United States. Employers are required to verify the identity and eligibility to work for all new employees. An Employment Eligibility Verification form (I-9 Form) must be completed and kept on file by the employer.

Source: About.com