Credit Check Policy

"The University System Office will no longer require a credit history investigation for employees who are receiving renewal purchasing cards provided that the employee was an existing cardholder on July 1, 2008. A criminal history investigation is required upon card renewal unless a previous history was done for the employee by Human Resources."

Both credit and criminal history investigations are required for new cardholders effective July 1, 2008 unless previous employee investigations were conducted by Human Resources.

It is university policy (effective July 1, 2008) to check credit histories for individuals applying for positions with access to, or responsibility for money, including, but not limited to, Purchase Cards.

Guidelines for interpreting credit reports:

1. Student loans currently in default and bankruptcies should be considered bad credit, however, a bankruptcy followed by good credit established after filing, indicates an attempt to rectify past credit problems and may be considered acceptable if the bankruptcy occurred over three years ago.

2. Credit reports indicating installments in excess of 40% of gross monthly income are not acceptable.

3. One or more unpaid collections and judgments are considered to be bad credit. Collections and judgments appear under "Public Records." Collections and judgments can be paid, marked paid or satisfied but will not be removed from the credit report for 7 years. If collections and judgments have been paid and all other credit is satisfactory, the institution may approve, at their discretion.

4. Mitigating factors regarding an applicant’s credit report, such as hardships and disputes with creditors, will be considered by the institution upon submission of objective written evidence, as long as the evidence presented, in the sole opinion of the institution, represents reliable evidence beyond the applicant’s control. 

5. It is not the responsibility of the institution to discover research or verify that there are possible mitigating factors. The burden of proof to present mitigating factors rests entirely with the applicant.

Credit reports for applicants and/or current employees shall be handled in the same manner as Criminal Background Investigation reports. The same Background Investigation Consent form is used for both. The Human Resources Assistant will contact the reporting agency via fax or e-mail with the necessary information to receive a report. The report will remain with Human Resources until a determination on continued employment eligibility or initial employment eligibility has been made. The Human Resources Assistant shall place a certification memorandum in the employee’s file stating the date the report was obtained, the name of the person reviewing the report and a statement that the report showed that the employee was or was not eligible for employment with the institution.  The report shall then be stored segregated from the employee’s personnel file.  The report itself is not provided to the employee’s department.

The Background Investigation Consent form shall be placed in the personnel file of the employee and maintained in accordance with USG Record Retention Guidelines.

For all non-successful applicants and current employees, consent forms for credit reports, a copy of the pre-adverse action disclosure, a copy of the adverse action notice, the statement of the person reviewing the credit report to determine if the subject of the report was or was not eligible for employment and the credit report must be retained in accordance with USG Record Retention Guidelines.

A copy of his or her report shall be given to each unsuccessful applicant and/or employee as applicable.

Fair Credit Reporting Act (pdf)

Fair Credit Reporting Act Summary Sheet (pdf)

State Purchasing Card Policy pg. 12 (pdf)

State Purchasing Card Policy Executive Summary (pdf)

Updated 8/19/08