Shocked To Get Rejected For A Job Due To CIBIL Score? Read On To Know More

20-Dec-2016 written by : FSI-Team

Neelam had set her hopes high on her job application with a software giant. She had cleared all the rounds of screening and was expecting a call any day now. She was so sure of being selected that she had spent a large sum on her credit card knowing she would be able to take it on in the following month.

Alas, she received an email from the company telling her she hadn't been selected. It brought her whole world crashing down around her. She had considered herself as the ideal candidate, with the right amount experience and the perfect academic background. Then what went wrong? The most shocking revelation - her poor CIBIL score was the reason for rejection.

Sounds absurd, doesn't it? But it is a fact. Companies insist on checking the credit score of a potential candidate before hiring. Initially it was discussed as a western concept and only in the western nations employers take note of the credit background, but now it is happening in India too. Especially in the financial realm, banks and other institutions are checking the credit history of a person to assess one's capability and responsible behaviour.

Why Companies Want To See Your Credit Report

A credit report is an important window that allows potential employers to peek into your credit past and let's them draw conclusions on how responsible you have been as a borrower. "But why should companies be concerned about my personal finances? Am not applying for a loan with them?" wondered Neelam. Surely, this is a common concern.

One must understand that your credit report speaks volumes about you not just as a borrower but also as a person. If you have a shaky credit past, have consistently defaulted on payments, are under a huge debt pile then certainly you have made a mistakes somewhere down the road. From the company’s standpoint you have not been careful enough with your own finances so it is difficult to trust you with company's money.

No company wants to invest in a person who shows nonchalance towards own responsibilities and is careless. When you use a credit card or take a loan, you make a promise to repay your debtors on time. A person who is consistently missing payments cannot be trusted to meet deadlines at office. This means there would be conflicts at workplace and the work will not be completed on time. Thus, a poor credit score is a stain on one’s financial character.

Entrapped in debt, a prospective candidate may not be able to fully concentrate on work. If there are overdue accounts in the report, then chances are that your work could get disrupted due to interference of collection agents. A new employee is a pure expense for every company. They do not want personal worries to be carried to office.

A default or "written off" flag could indicate dishonest intentions in general. It is possible that you are prepared to evade payments when taking a debt. This means you have trickery at heart and no one wants to collaborate with such a person.

The moment Neelam came back from her interview, she went on a shopping spree using her credit card. Perhaps, she counted her chickens too soon. In the absence of income, it will become difficult to pay off her bills on time and will add to her already piling woes. There was no need to hurry to the mall. She should have waited patiently. Through her report it would reflect as she is a person who is over-zealous, underprepared and impatient. All negative traits that affect one’s employability.


A poor CIBIL score can easily dash your hopes of employment. However, the opposite is not true. A good credit report is no guarantee of a job. Ofcourse, irrespective of your score, there can be other reasons too for rejection. Companies check credit background to maintain high financial hygiene. They don't want to indulge with anyone who has a tainted credit history. A few reasons why companies check your credit reports are:

  • To see if you are entrapped under heaps of bills
  • To examine your behaviour towards own finances. If you have been very careful with own money then you can be entrusted with company's reins too.
  • To assess your demeanour as a person. Whether you are dishonest towards your creditors or over using credit or you have collections accounts. All these indicate troubles and companies don't want any disturbance.
  • Don't let your CIBIL report become an obstacle to your prospects of being employed. Work on it today.



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