Credit score: Not just loans, poor credit score can also spoil your work in these 4 places..

Whenever we hear the name of 'Credit Score' or 'CIBIL Score', only one thing comes to our mind - a loan. We think that if the score is good, then we will easily get a home loan, a car loan, or a credit card, and if the score is bad, then we will not get it. That's the whole story.

But if you also think like this, then you are living in a big misunderstanding. In today's digital era, your credit score is not just a measure of a loan, but it has become your 'Financial Character Certificate'. A bad credit score not only gets the loan application rejected, but can also cost you thousands of rupees in many other important aspects of your life. Let's know those 5 big places where a bad credit score can become a problem for you.

1. Hurdle in Getting a Job

You may be surprised to hear this, but it is true. Nowadays, many companies, especially those in the banking, finance, insurance (BFSI), and fintech sectors, check the credit score of the candidate before hiring them.

Recently, Rajya Sabha MP Dr. John John Brittas asked the Finance Ministry whether it has been made mandatory for candidates to maintain a minimum CIBIL score of 650 or more for banking jobs. In response to this, Minister of State for Finance Pankaj Chaudhary had said that this rule has been implemented to develop financial discipline in new employees.

Candidates appearing for the National Bank exam will have to show a healthy credit history at the time of joining. If a candidate's CIBIL record is not updated, he will have to take an NOC from the bank; otherwise, the offer letter can also be canceled. The final decision in this regard will be in the hands of the concerned bank.

Why do they check?
Banks believe that a person who cannot handle his own finances responsibly (whose score is poor), how will he handle the company's money or sensitive data? A poor score reflects your indiscipline and unreliability.

What is the effect
If two candidates are equally qualified, the company will always choose the candidate with a better credit score. A bad score can snatch away a good job from you.

2. Higher Insurance Premium

Your credit score can now determine the premium for your car or health insurance.

What is the connection?

Insurance companies are now using a 'credit-based insurance score'. Research has shown that people with a bad credit score are more likely to make an insurance claim.

What is the effect

If your score is bad, the insurance company considers you a 'high-risk' customer and charges you a higher premium. On the other hand, a person with a good score gets the same insurance policy at a cheaper price. This difference can be thousands of rupees.

3. Difficulty in Renting a House

This has now become a new trend in big cities. Landlords are now asking not just for your bank statement but also for your credit score.

Why do they check?
Landlords want to ensure that their tenant is financially stable and will be able to pay the rent on time every month. A poor score indicates to them that you may default on paying rent in the future.

What is the impact?
If your score is poor, the landlord may refuse to give you the house or may ask for a higher security deposit from you.

4. Issues with Utility Connections
Do you want to get a new postpaid mobile connection or get broadband installed at home? The service provider company may check your credit score before approving your application.

Why do they check?
Companies want to see whether you have a record of paying bills on time or not.

What is the impact
If you have a poor score, the company can either refuse to give you a connection or ask you to deposit a large amount as a security deposit.

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