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What is a Background Check?

financial loan background checks

A background check is a process which is used to look into the past of a person to check for any criminal history and for other purposes as well. A background check can help us determine if a person is/was involved in illegal activities such as theft, assaults, drug abuse etc.
While background checks are quite common for the police department to dig in, a lot of companies now also run background checks before hiring an employee. This helps them make sure they are hiring a reliable employee, as someone with a bad background record can potentially be of harm

Background checks help to look into important things and events that have occurred in a person’s life. These events may include past work history, credit card information, verification of education, vehicles and properties owned by a person etc.

Backgrounds checks can be done to check for:

Criminal Records

An organization or an individual can do a background check of a person to see if the person has any violent history or have been to jail before hiring them.
A person who has a clean past is more likely to get hired than a person with a bad record. If you have a history of violence or if you’ve been to the jail, you will find it difficult to score a job because organizations would be scared of asking you to work for them.

Credit Card History

A background check isn’t only confined to search for criminal history of a person. It is also used to check for the credit history of a person. This helps a company, bank or an employer to check if the concerned person has been involved in taking too many loans, or if he’s in too much debt.
These impressions are countable when you apply for a job, go to a bank to get an account opened, or to get a loan from a lender or a loan company.

Health And Fitness

A background check can be carried out to check for any major health problems in an individual. When a person applies for immigration or to study abroad, the government of the applied country does a full background check on the individual which also includes checking for any major illness or injury in a person.
This is because a country would not like to welcome an individual with certain illnesses. This can be a reason to get your visa rejected.

Loan Companies

There comes a time in a person’s life when he runs short on cash or suffers a loss of income. In such circumstances, taking a loan becomes a necessity. However, loans aren’t just handed over to people. The companies offering loans do a thorough background check on the borrower to check for any fraudulent activities in the past. Loan companies also take a look at your sources of income, places you’ve worked, just to be sure of your character and tendency to return the loan on time.

Most of these checks are performed with the help of identification numbers of fingerprinting. Since fingerprinting processing time is usually low, it is now being used all around the world to initiate background checks.

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