Why run a credit report on people you hire?

Question

I was applying for a few jobs today because i plan on changing careers from military to civilian. I found that a good 50% of the places that i applied to asked to do a credit report. Honestly what does that prove other than most all of us have had at least one bad mark or two. I don't see its relevance to acquiring a job can someone please explain this to me. I would greatly appreciate it

One of them was for cleaning carpets
for example

Answer 1

Most places that will choose to run a credit report on a prospective employee involve the handling of cash or other valuables. What that credit report will tell us is whether or not you can be trusted not to "steal."

It's the notion that those in financial trouble will be more apt to steal because they need the money. Not necessarily the case, but that's the philosophy they're operating under.

However, if you're applying for a job that doesn't involve being bonded, working for the government, or handling cash or valuables, then a credit report isn't truly necessary. A simple employment verficiation and perhaps a criminal background check will suffice.

Answer 2

To some companies this is worth more than the references usually requested in the olden days. Especially if you are working in a financial institution, what company would want an employee who has a low beacon score, declared bankruptcy or has proven inability to meet debt responsibilities. A credit report to them is gold.

Answer 3

The companies also use it as a check for possible embezzling...If you owe to several companies and are behind in payments... the future employer would like to figure out the risk of you taking money or property to help yourself out financially.

Answer 4

Some places use that as a guage of responsibility. If you are not responsible enough to maintain your own finances then how responsible could you be for the company?