Categories: Finance

Can An Employer Reject Your Job Application Due To Bad Credit History?

Can a company reject job application based on bad credit history

Credit history checks for a job in brokerage institutions and financial institutions is a normal trend in USA. Do not expect a favorable response if you have been struggling with bad credit ratings lately.

It has been argued that this trend makes life difficult for an already burnt person. It throws him in a vicious circle.
He cannot pay back his credit and improve his ratings unless he gets a good job. And he cannot get a good job unless he has good credit history.

Some states in USA have also enacted a rule for employers to NOT follow this trend and make life easier for struggling people.

I know the immediate question in your mind. Does this hold true in India? Do Indian companies perform credit history checks before handing over the job offer letter?

The answer at the time of writing this article is ‘No’. Indian companies do not call for credit history reports while hiring the talent.
companies here are more interested in other kinds of background checks like identity verification, criminal histories, experience, educational qualifications and past job designations.

The credit history check is currently used only for lending purposes in India. But, you never know, the trend may pick up in India soon with the CIBIL and credit reports slowly gaining ground and providing an insight into a person’s past financial behaviors.

The case gets more stronger for BPO and I.T. companies who take care of back-end operations for multinational banks and financial institutions. They handle confidential data about their customer’s finances.
The rationale behind credit history for job is that people with big debts and bad credit profiles are more likely to steal or commit fraud.

Hence, The MNC’s might push their vendors (Indian companies) to perform the credit history check before hiring for their projects.

So, this is another reason for you to maintain a good record with respect to your loans and credit cards.

Disqus Comments Loading...
Published by
Anil Gupta

Recent Posts

ACS Work Experience ‘After Month’ Calculation

ACS is Australia Computer Society and is required for certain job occupation in Australia's SkillSelect permanent residency application. ACS assessment…

3 months ago

Forgot to upload photo on NRI online passport renewal form

Online NRI passport form - Editing not allowed Editing on government's online NRI application is not allowed once you are…

7 days ago

H1B Visa Approved but Status is Administrative Processing

After the H1B Visa interview at US embassy in Delhi, India, Visa officer took my passport and told me Congratulations,…

7 months ago

H4 EAD News 2018 DHS – USCIS Plan Removal by Nov

Nov 18, 2018 - DHS may publish rule by Nov 2018 H4 EAD news update today: Two California congresswoman (Eshoo,…

7 months ago

H1B Lottery System To change In April 2019 – H1B 2020 season

H1B Lottery System H-1B cap season starts every year on April 1 for work authorization to start from Oct 1…

2 days ago

HR 392 – Removing the country limit for US green cards

The HR 392 has been merged into an amendment attached to a spending bill, H.R.6776 (DHS Appropriations Act) for 2019.…

3 months ago