Let's take a walk in the employer's shoes to understand.

An average corporation that screens potential employees shells out more than $1,000 before the applicant punches the clock the first time. Depending on the position, it can take as long as a year of productive service from the employee before this money is recouped. Just like every business, they want a return on the investment.

What is the harm in a credit report? Look at the history. Those with a disparate amount of debt to the potential income of the job will be in financial straits. This makes the employee more susceptible to opportunities to supplement their income. Do you see a red flag yet? Look more closely.

Employees with more than one job are more likely to be absent and tardy given their scheduling. This lost time represents lost productivity for the employer and insufficient return on their investment.  Wage garnishment and creditor calls at work are other ways that bad credit can have an impact on an employee's productivity.

Potential employees may only have no criminal history because prior employers chose not to prosecute. People who are in debt or poor, even with a job, are more likely to steal than those that are comfortably living within their means. Even theft of company supplies represents a loss to the employer.

What about those with poor payment histories? That does not affect their professional skills, but it does testify to their ability to complete assignments. Debts are resultant of contracts where a service or product is provided with the promise of later payment. Potential employees who default on promises have a higher probability to fail to meet deadlines and expectations.

What about inquiries? If a potential employee has had multiple inquiries into their credit within six months of their application, the reasons for the inquiries are another red flag to a human resource director.

When applicants have attempted to obtain additional credit, many times it is indicative of a failure to steward their finances properly. This is more negatively punctuated when the credit is refused.

Applicants with many potential employer inquiries are a different risk. This person either does not stay on the job very long or they have been such poor candidates that they have not been chosen for other positions. Both instances are a warning to potential employers.

As an employer, would you trust someone who cannot manage their own finances to be in a position of responsibility that could negatively impact your finances