In the month of July last year, the banking recruitment agency Institute of Banking Personnel Selection (IBPS) had also added CIBIL score as a mandatory qualification for candidates applying for jobs in public sector banks other than State Bank of India (SBI).
Usually you must have seen and heard that a person’s loan could not be approved by the bank and the reason for this was bad CIBIL score. Yes, this is absolutely true. If you want to take a small or big loan from the bank, then correct it. It is important to keep in mind, this figure plays an important role not only in getting a loan but also in getting you employment. Many companies check the credit history of the applicants applying for jobs during their background verification. Banks have issued a notification last year and have included it as a mandatory qualification.
Understand the need for CIBIL score like this
First of all, let us talk about what is Cibil Score and through this the bank finds out about the loan applicants whether they will be able to repay the loan taken from the bank. What type and quantity of loans have been taken in the past and whether their payment has been made on time or not. In other words, it is a measure of trust. Similarly, to measure trust and honesty, many banks and multinational companies have also started giving importance to checking credit history before giving a job. If we look at the standards, the credit score of any person is between 300 to 900 points and above 700 is considered good (Best Credit Score).
Actually, CIBIL score reflects the credit history of a person. It tells you when you took a loan, how many loans you currently have, how many credit cards you are using and how many liabilities you have. Apart from this, your responsibility regarding loan repayment is also known through credit score.
IBPS made it mandatory for job
In the month of July last year, the banking recruitment agency Institute of Banking Personnel Selection (IBPS) had also added CIBIL score as a mandatory qualification for candidates applying for jobs in public sector banks other than State Bank of India (SBI). Along with this, figures were also fixed for this. According to the notification, applicants applying for jobs in banks must have CIBIL score of 650 or above. It was also advised that applicants must ensure that they maintain a good credit history.
Like banks, many companies did the necessary
According to a report, apart from banks, now multinational firms like Citibank, Deutsche Bank, T Systems also check the CIBIL history of the applicant applying for a job along with other checks. Earlier it was said that due to poor CIBIL score, one will not be able to get loan from the bank, but with this new credit clause added in the qualifications for jobs in banks and other big companies, the importance of CIBIL score has increased even more. If your CIBIL is bad, then do not panic, it can be fixed by adopting some precautions and tips.
These tips will fix CIBIL score
- If you have any loan going on, then pay its EMI on time.
- Use the limit given in the credit card carefully, if it is not absolutely necessary then use only 30-40 percent of it.
- Apply for a new loan only when you have repaid the loan taken earlier, failing which the burden may increase.
- Do not take multiple loans at once, because due to this you may face difficulty in paying EMI, which will affect your CIBIL.
- Monitor your credit report, this will help you in knowing the shortcomings and you will rectify it in time.
