*Loan,banking and credit>>>credit report

Credit report for new hires?

...apparently your credit history gives a picture of your performance and reliability on the job. I know of people who have terrible credit due to lay-offs, divorce, etc. but are very dependable in all aspects of their lives. What gives with the employers wanting this info? Aren't job references enough anymore?

Your credit history is in no relation to your job performance.
Employers check your credit to see if there is a possibility that you might be susceptible to stealing or skimming to pay your debts.
I have not-so-great credit but I do my job 100%.
I agree with most people, that checking your credit report should not necessarily be a major factor in determining your performance or reliablity. Credit checks do not show if you've ever been late, took too long of lunches, had an affair with their boss...etc. I'd rather go by references or past performance reviews. I'm sure there are lots of people with great credit but have terrible work ethics.
Anyway, potential employers must have your permission first. Also, not every employer checks your credit. They usually check if your job involves dealing with money (banks, retail..) or if your new job or promotion at your present job involves a large sum of money.

Very few employers have access to your credit report for hiring purposes, VERY few employers "qualify" to run score reports on employees.
If someone has a lot of credit problems, they may not be concentrating on their jobs. They might spend time on the phone with bill collectors, are they might be distracted by their money issues. They also might be more prone to steal.

If the job involves travel, they need to have credit available to make purchases on the road.

Credit also indicates how well someone manages their personal obligations. If they can't manage their money, I certainly don't want them trying to manage mine!

I think that the credit report is just one part of it though. Unless travel is involved, I don't think my company would decide against offering a job to an otherwise qualified candidate. BUT if there are two equally qualified candidates, then the one with the best credit might end up a bit higher on the list.
I think that mostly employers that deal with money can run credit reports (like banks). And I believe this is so that people who owe a lot of money aren't tempted by they cash they are working with.
I work in the HR department for a large corporation. The ONLY times I've ever seen and/or heard about someone's credit report being run for the possibility of a job is when dealing with money directly IE. a Bank. The reasoning behind this is if you owe a good deal of money, you might be tempted to take some here and there to pay your bills. From what I understand only a financial institution has any sort of right to run your credit report as basis on hiring status.

You have the right to know who's digging where they shouldn't be. If you believe someone is checking your credit report without your consent (If you signed a credit report consent form, obviously you don't have a leg to stand on.), I would speak with someone from your local credit bureau for the next steps to take.
HR for years and years and years.
They also do it for jobs where bribes can be an issue like law enforcement positions.

I work in a bank and didn't have a credit report taken on me for it so I guess it just all depends on who the employer is.