Credit screening on candidates or employees
A credit screening is a process whereby a person’s financial history is scrutinised to assess financial stability and ability to meet financial obligations.
As an employer, there may be several reasons to request a credit screening. Common reasons include:
- Financial responsibilities: for positions that involve money or financial decision-making, such as financial manager or bank advisor.
- Risk management: to reduce the risk of financial crime or irregularities within the company.
- Security reasons: for roles with access to sensitive information or valuable assets.
- Assessing trustworthiness: Financial history can be an indicator of a person’s overall responsibility and trustworthiness.
- Compliance: In some industries, such as finance and insurance, credit checks may be a legal requirement.
- Assessment of stressors: Serious financial problems can affect a person’s work performance.

Is it legal to run a credit screening as an employer?
It is legal to carry out credit screenings under the right conditions. Several laws regulate the right of employers to carry out credit checks, for example:
- Credit Information Act (KuL)
The Credit Information Act regulates the employer’s need for a legitimate purpose for conducting a credit report. - General Data Protection Regulation (GDPR)
The GDPR protects individuals’ personal data. - Discrimination Act
Employers must be careful that the use of credit information does not lead to discrimination, as specified in the Discrimination Act.
To comply with all the rules, consulting a lawyer or background check expert before implementing a credit check policy is recommended.
What can the employer see in a credit screening?
A credit screening – or credit check or credit report as it is also known – gives employers a broad insight into a person’s financial history. For example, the process provides information on income details, payment history, debts, property owned and company involvement.
Practical tips for interpreting the results
When you, as an employer, carry out a financial health check, the results can sometimes be difficult to interpret. It is important to use the results in a fair and ethically defensible way. Here are some suggestions on how to think:
A payment remark may indicate that the candidate has had financial problems in the past, but it is also important to look at the whole picture. If it is older or isolated, it is not necessarily a warning sign.
Debt is not always a bad thing. For example, many people have mortgages or student loans, which can be seen as signs of long-term responsibility.
If the candidate has several involvements in other companies, this may indicate an entrepreneurial spirit, but it is also important to examine whether these involvements may create conflicts of interest with the current position.
Validata – a complete solution for credit checks
Validata helps employers conduct both national and international credit screenings. We also perform other types of background checks such as education verifications, work experience checks, and criminal record checks.
We offer a complete solution to help you make informed hiring decisions, and we ensure that the process complies with all legal and ethical guidelines, so you can focus on your business.
Contact us for a free demo with one of our Account Managers today!
"*" indicates required fields
"*" indicates required fields
"*" indicates required fields
"*" indicates required fields
"*" indicates required fields