Types

• The most basic background check searches for criminal convictions in your state. Some businesses will also conduct a nationwide criminal background check, a credit history check and a thorough investigation of potential employees or business partners.
  
  

Considerations

• A thorough background check would include a credit history since prior bankruptcies or significant debt might raise red flags about the subject's suitability for a particular position.
  
  

Time Frame

• A background check typically will search for information during a specific time period. Many will examine the past 10 years of criminal and credit history. Juvenile records are generally sealed, so records prior to a person's 18th birthday will not be disclosed in a background check.
  
  

Identification

• A background check can also verify identity. State laws vary, but generally the subject of the background check must give permission for information to be released about her criminal and credit history, and positive identification is required to ensure accuracy.
  
  

Warning

• There may be limitations on the use of background information, even when the subject has granted permission. For example, according to legal research experts at The Virtual Chase, using voter registration records for a non-political purpose is not allowed in Pennsylvania.
  
  

Limitations on Information

• Several federal statutes regulate how information gathered for one purpose can be used in a background check. The Gramm-Leach-Bliley Act regulates financial institutions revealing information, the Fair Credit Reporting Act regulates credit information and the Drivers Privacy Protection Act regulates disclosure of individuals' driving records.