08-Dec-2017 written by : FSI-Team
Any job switch can be equally exciting and stressful. New people, new processes and above all new challenges to establish yourself in the new environment can be daunting. And what happens when the new employer wishes to see your credit report prior to making you the offer. You understand that this is the first step towards establishing your impression with the employer.
Any derogatory status on your credit report can potentially take away that much required job away from you. As you know, the bureau report is reflective of your ability to manage your finances. Presumably one who is able is able to manage his finances well, should be able to manage other responsible tasks as well with diligence. One who is stressed out financially has the potential to carry pressures to work and occur mistakes and error that can lead to losses to the organization. More importantly such a person is also potentially riskier in giving a job which happens to have finances involved in it (which unfortunately today all levels of jobs are exposed to).
Legally in India an employer does not have the access to the bureau reports the way it is available in the other developed economies. However, one may be obliged to furnish one upon request from the employer. What should one be doing on receiving such a request? First and foremost do not panic. The credit report is just another document that your potential employer wishes to check. Accessing your report in no way is going to have a negative impact on your CIBIL rating. All consumers have the authority to extract the report as many times as one wishes without any bearing on the credit profile. In fact you can obtain your report for free from any of the four bureaus in India. As per a directive from the Reserve Bank of India, you are entitled to it.
But in case you have had defaults in past and there are some negative flags reflecting on your report then it may be a cause of concern. In such a scenario, you may be left with no option but to take the employer in confidence. Share the correct status with them and apprise them of the reason that led to financial stress and lead to default. You can also ask for a time frame from them to clear up all your dues if need be. In case they are hiring you for your talent, they may take that into consideration if the credit report status makes such an important part of the selection process.
While that may be the situation that you may land into and deal with it, what is advisable is to keep a track of what is happening on this front none the less. You should like your bank account statement, your regular credit card statement or any other financial statement, must be checking out the CIBIL report as well at least once a year if not more frequent.
The report may not only get impacted on account of the delayed or defaulted payments on your loans or other credit facilities, but there is a big chance that the data captured by the bureau is erroneous and is negatively impacting your credit profile. While these errors can be rectified but for the moment when you need these to be in good shape and it turns out otherwise, it can be pretty stressful. Not only for a job search perspective from availability of a loan can also get severely impacted with a bad credit score and you may not be able to access that personal loan that was definitely required to fulfill some need.
Therefore it becomes highly important to have a regular check run on your credit report and in case of any undesirable status have to work on it and have it rectified.