You are already aware that your CIBIL Score plays an essential part in your eligibility for credit and the terms on which you can access it. But, were you aware that your credit score can significantly impact your job opportunities as well? Let us understand how a credit check for employment works.
Understanding CIBIL Scores
To begin, let’s recap what your CIBIL Score is and what it is used for. It is a three-digit number between 300 and 900 that measures your creditworthiness. It is used by lenders to estimate your repayment capacity and, by extension, the risks involved in lending money to you. Most lenders agree that a score of 750 or higher is ideal, and can help you secure the best credit products on the most favourable terms.
Pre-employment credit checks
While not every employer in India will look at your CIBIL Score during the hiring process, some companies – specifically those in the banking and finance sectors – might check your credit score before offering you a job.
- Why is a credit history check for employment necessary?
Well, employers, particularly in the banking and finance sectors, conduct credit checks to assess a potential employee's financial responsibility and integrity. A good credit history is viewed as an indicator of an individual’s prudent financial management skills. - What is seen in the credit check for jobs?
When employee credit history is scrutinised, the individual’s past and current debts, repayment history, and any instance of bankruptcy or default are checked.
Maintaining a good credit score is essential not only for securing loans and credit cards but also for better career prospects. Services like the Bajaj Finserv Credit Pass can help you monitor and improve your credit score, enhancing your employability in sectors that value financial responsibility. So, while it is entirely up to the hiring company whether you need to provide your CIBIL Report when applying for a job, taking charge of your credit health and proactively boosting your credit worthiness is well within your hands. Sign up today and benefit from an array of credit-building tools from this unique CIBIL-powered service.
