How to Read a Background Check: All You Need to Know

Understanding how to read a background check is important for landlords, employers, or anyone else to conduct comprehensive screening before employing or leasing an apartment.

Each section of the report, whether a criminal background check, employment verification, or credit report, provides information about a person’s reliability and suitability.

However, not fully understanding the details in these reports can lead to the wrong hiring decision.

This article will briefly summarize the background report and help landlords, employers, and HR professionals easily interpret this information.

What Is a Background Check?

A background check helps verify a person’s identity and history. Employers, landlords, and other entities often use this process to gather necessary information about candidates.

A background check typically involves investigating a person’s criminal record, employment history, education verification, and credit reports. 

It collects accurate background information that supports informed decisions about hiring, renting, or other forms of partnership.

For instance, an employment background check gives employers insight into a candidate’s past employment.

A criminal background check report reveals any criminal charges, misdemeanor convictions, or felony charges that could impact a candidate’s fitness for a particular position. 

Similarly, a credit report can shed light on an applicant’s financial responsibility, which might be relevant to specific job roles or tenancy agreements.

Types of a Background Check Report Explained

A background check report can provide different but important information about the person you’re interested in that can help you decide whether they’re a good fit.

Let’s take a look at the types of background checks and see how each can contribute.

Criminal Records and Criminal Background Checks

In situations where trust and responsibility are crucial—such as selecting a caregiver, tenant, or employee—reviewing a person’s criminal history can help assess past legal issues or jail time.

The criminal record section reveals potential criminal background information, including misdemeanors, felony charges, and other instances of disorderly conduct.

A comprehensive criminal background check report may include details from court records, such as the sex offender registry or records of unlawful possession. These details help hiring managers better understand the relevance of a candidate’s past actions.

Employment and Education Verification

Alongside a candidate’s criminal history, verifying their employment history and education is an important element of comprehensive pre-employment screening.

It gives assurance and validity that their experience aligns with the position requirements and helps prevent issues like identity theft or resume fraud.

This process involves confirming past job titles, responsibilities, and employment dates to check if they match the candidate’s resume and claims.

Validating education credentials ensures the candidate possesses the qualifications essential for the role.

Credit Report and Financial Responsibility

A credit report shows a person’s financial responsibility. It details their debt levels, payment history, and other financial obligations.

While not always relevant, credit history checks are essential when hiring for roles involving financial decision-making, handling money, or assessing whether a tenant will be dutiful with their payments.

Driving Records and Drug Testing

For any roles and situations that involve operating a motor vehicle (such as delivery services or contractor work), a comprehensive driving record check is essential, as safe and responsible handling is crucial.

A proper investigation can provide valuable information such as traffic violations, accidents, and license status. 

Drug testing is often a standard requirement and helps identify individuals who use controlled substances that might interfere with performance or create liability in various situations.

Social Media Screening

Social media screening has become a valuable tool for anyone seeking insights into a person’s behavior, professionalism, and potential red flags that may not appear in a criminal background check or prior history. This process involves reviewing publicly available social media profiles.

To screen effectively, stick to public content and use a checklist to stay objective. If you’re conducting a hiring process, follow Equal Employment Opportunity Commission (EEOC) guidelines to keep hiring non-discriminatory.

This approach ensures candidates for sensitive roles—like PR, healthcare, or education—align with industry standards and represent the company well.

Legal Considerations When Reading a Background Check

When reading a background check, it’s important to follow legal guidelines to avoid potential issues and protect both the individual being screened and the party conducting the check.

Federal and State Laws

Background checks are governed and guided by both federal agencies and state laws, which set strict guidelines on how much information can be collected, used, and disclosed.

Here are some of the regulations enforced:

• Fair Credit Reporting Act (FCRA): Authored by the U.S. Congress, this act requires employers to get the applicant’s permission before accessing their credit or criminal background. If the report influences the hiring decision, the employer must disclose it to the candidate and allow them to respond.
• Federal laws: Various federal laws were created to address specific aspects of background checks in certain industries, like the National Child Protection Act of 1993, which requires a thorough criminal background check for applicants in industries involving children or the elderly.
• Local laws: Some states, like New York, have additional restrictions, like the “ban-the-box” laws, which prohibit employers from asking about criminal history on initial job applications.

EEOC Guidelines

The Equal Employment Opportunity Commission (EEOC) enforces federal laws that protect candidates from discrimination based on race, color, religion, sex, national origin, age, and disability. 

Employers must carefully follow EEOC guidelines to avoid discrimination and enable compliance with both federal hiring laws and applicable laws related to fair hiring practices.

Following these guidelines can help employers make fair decisions while protecting against discrimination claims. Key points include:

• Individualized assessment: Instead of disqualifying a candidate solely based on a criminal record, the EEOC encourages an individualized assessment that considers the nature, criminal convictions, severity, and timing of any offenses, as well as their relevance to the particular position.
• Avoiding blanket exclusions: Automatically disqualifying candidates due to certain background information, like criminal history or a credit report, may result in discrimination claims. Employers should instead evaluate each case to determine if it poses a genuine risk to the specific role.
• Consistency in hiring practices: Employers should consistently conduct background checks on all candidates applying for similar roles.
• Privacy and confidentiality of information: Sensitive data in background check reports, such as credit history, criminal offenses, or driving records, must be handled carefully.

Tips on Making Informed Decisions

Accurately reading and evaluating background checks is essential for making fair and unbiased decisions. Using a standardized checklist ensures each report receives the same level of review, helping to reduce any forms of bias, whether the check is for hiring, tenant screening, or selecting a babysitter.

Key checklist items include verifying employment, criminal background checks, reviewing credit history, and assessing driving and drug test results when needed.

It’s also critical to consider the context of any findings, such as whether a minor offense happened years ago or recently.

Applying these standards consistently promotes fairness and protects against legal risks.

When to Seek Legal Counsel

Sometimes, background check results raise questions that need expert interpretation. Legal counsel is helpful in these cases, especially with complex criminal cases or sensitive information.

Legal advice is needed for open criminal investigations, where a lawyer ensures your decision is legally sound. For job positions under federal agency requirements, legal experts familiar with hiring regulations can guide you in handling sensitive data.

Additionally, when compliance issues arise, especially with FCRA or EEOC guidelines, legal counsel can help you avoid potential liabilities.

Choosing a Background Check Provider

A professional background check service is crucial in helping reduce risks, protect reputations, and create a safe environment, whether in a workplace, rental property, or partnership situation.

These services offer expertise and resources that many may lack, such as access to accurate information from county criminal records and legal insights that help avoid compliance issues. 

Choose a provider that adheres to all relevant federal, state, and local laws when conducting background checks. This ensures the process is carried out legally and ethically and reduces the risk of legal repercussions for you or your organization.

When comparing providers, consider the pricing structure to make sure it aligns with your budget. Although some services may appear cost-effective, they can sometimes sacrifice accuracy and may have hidden fees.

You should aim to pick a knowledgeable representative who understands both the background check process and compliance requirements. This will help resolve issues efficiently.

Using a reputable background check provider ensures a legally sound and consistent approach, enhancing the efficiency and fairness of the screening process.

For instance, Stellar Background Checks offers comprehensive and customizable services designed to meet industry standards, with a focus on compliance, accuracy, and customer support.

Make the Winning Hire With Stellar Background Checks

Hiring the right candidate requires speed, accuracy, and compliance, and Stellar Background Checks delivers on all three.

Our expertise in background check reports is designed to give you the complete picture, helping you make well-informed and confident hiring decisions.

With a commitment to reliable data and legal compliance, we ensure that every report is thorough and clear, so you can focus on bringing top-tier talent onboard quickly.

Whether you’re filling a key position or building an entire team, we’re here to support and help you make informed hiring decisions. Get started by filling out our form or calling us at 1-800-301-4140 today!

FAQs About How to Read a Background Check

What are some red flags on a background check?

Red flags can include a criminal record with serious offenses, job history inconsistencies, poor credit history (if relevant), or a failed drug test. Depending on the type of role or situation, these might indicate risks.

What does complete vs. clear mean on a background check?

Complete means the background check process is finished, while clear means no issues were found that would raise concerns. You can have a check that’s complete but not clear.

How do you know if you will fail a background check?

If you have a criminal record, recent bad credit, or anything else that might be a concern for the specific role or situation, it could be flagged. Knowing what’s on your record can help you anticipate any issues.

What does a normal background check look like?

A typical background check reviews criminal records, job history, education, and sometimes credit or driving records, depending on the reason for the check. It’s usually straightforward and confirms the information provided.