Why Companies Should Choose Candidates with Good Credit Scores?

It can be a tedious process to get a new candidate to join the company. There are many aspects to this and the most important factor is to ensure that you hire a candidate who is not only genuine with their documents but is also a good fit for the company. Another important factor is maintaining security so that the new hire doesn’t pose any threat that can potentially bring down the company’s reputation or pose a risk of landing the company in legal trouble.

To combat this issue, companies do a pre-employment screening or a background check. Now they can do this either through the hiring team or they can also hire services like Zella Information who do all the background checking work for them and provide them with an unbiased and accurate report. Hiring these services is a great choice because not only will you be saving a lot of time, but these professionals have advanced tools that also find out information that you may have potentially overlooked. 

The reason behind recruiting people with good credit scores is simple. Those who are diligent with their money and dues will be diligent with the company’s money as well. In most cases, candidates with no dues and a good credit score prove to be excellent employees as they are proficient and sincere with the financial aspects. These candidates bring a lot of value to the company and prove to be a gem when it comes to the company’s progress and profit. 

What is CIBIL?

Credit basically means borrowing money, like a loan, to purchase something. Now that loan is to be paid back within the stipulated timeline and when the individual fails to do so, a certain interest is issued on the principal amount. A credit report check is calculating the amount of credit that the person needs to pay back to the lender. For example, if you have taken a loan from the bank, a credit check is a statistical method by which the amount of credit that is to be paid back to the bank is checked. CIBIL is India’s first credit information company that checks this. 

Why is a Good CIBIL Report Preferred? 

There are various reasons why companies choose candidates who have a good CIBIL report. Here are some of the reasons why

1. Integrity 

A good CIBIL report means that the person pays their dues on time and does not have any pending dues. This kind of behavior is a positive indicator as they understand the sincerity of paying back their dues and thus can be a trusted employee. Trusted employees maintain the company’s integrity and ensure that the reputation is upheld.

2. Sense of Financial Responsibility 

Candidates with good credit scores can be trusted with the company’s finances. They especially take care that the money is spent in a legal and economic way, thus preventing embezzlement of finances. Good credit scores give candidates financial credibility and are especially favorable if you are hiring someone to manage the financial sector of your firm.

3. Preventing Fraud

Candidates with questionable credit scores can bring potential harm to the company with money embezzlement and fraud practices. Such candidates cause a legal problem for the company and should not be hired under any circumstances. A good credit score differentiates the bad candidates from the genuine ones. 

Conclusion

Companies like Zella Information have advanced tools that they use for this kind of pre-employment screening of candidates. They look into the CIBIL records and curate an accurate report for you so that you do not spend time and resources by employing your employees to look into these matters and invest that resource into the company’s growth. It is beneficial to hire these professional services as they are proficient in what they do and can chart up accurate reports and include all the necessary information that you may have accidentally overlooked.