Why do companies do credit checks for employment?

Hi-


I doesn't really make sense to me that a company does creidit checks for employment. I completely understand about a background check, but what could there be on credit check that is not on a background check?

Why do companies do credit checks for employment?
An employer wants as complete a picture as possible on their prospective employees because it costs them money when they have employee turnover. One of the things they have found over time is that a credit rating affects this high turnover rate. Credit checks show them your consistency, how reliable you are, and your ability to manage responsibility. You may not have any credit rating and that would not affect your chance at that particular job, you may be over extended but show that you faithfully pay toward your obligation each month, and that could be conceived as a positive aspect of your personality. It is dependent on the type of job you are applying for, as to what the employer is looking at within your credit rating: other than a good or bad rating.
Reply:spending habits tell alot about a person
Reply:They want to see how responsible you are, if you are needy and have any reason to rob the company blind, how you treat your lenders, etc. Also, people with huge money problems like collections are going to be more stressed out and distracted at all. It's very useful.
Reply:Your credit says a lot about your character.
Reply:Well, if you have left a trail of unpaid bills etc in your past, I think it might impact someones opinion of your trustworthiness.. I was an employer and did the interviewing - though I never did any sort of check on potential hires, I cannot imagine that any and all info of this sort would not be helpful in making a decision. It tells you a little something else about the person that you are trusting to bring into your company..
Reply:Pretty much gives them and idea of how responsible you are, if you are exceeding your means and just want money not a career, or if you would potentially be a threat to their finances (stealing, etc.).
Reply:I agree. It is not right. I have heard that the reason potential employers do this is for several reasons 1)if you have money problems you cannot work in a finance-cash-money position because 2) they do not trust you around money 3) that you are too worried about your debts to be a good employee. It is a load of crap and should be outlawed! As far as poor credit saying alot about a person-be careful not to judge. Alot of times it is a family member, usually your own children who contribute to credit issues.
Reply:It gives them an indication of whether or not you are reliable in paying your bills, which speaks to character, also, whether or not you are deep in debt or in financial trouble, which could make a person desperate enough to steal or commit fraud on their employer.
Reply:Employees with money problems are more likely to steal or be stressed out.
Reply:For one thing, employers view a good credit rating as an indication of good character. And, for another, it predicts any possible interference from collection agencies and the likelihood of garnishments.