Settling A Loan Will Take Time For Your CIBIL To Heal
We recently got an email here at CreditSmart from a reader with the following question:
Email : *********@gmail.com
Paragraph : I did sattelment of my education loan so it can create problem for me to get a government and private job in India?
Some Employers Do A Credit Check
This is a great question and unfortunately there is some truth behind the concern. Settling a loan, while it is a great thing for your CIBIL score and peace of mind to be cleared of debt going forward, it is not an instantaneous shot from low score to high. In the short term, and by short term in CIBIL sense that is usually 1-2 years, your score will be climbing slowly only if you take the right steps.
You need credit to build credit, so if you are suffering a low CIBIL for any reason, it’s best to apply for a card or set yourself up with a secured credit card. Charge small amounts on it each month and pay in full every billing cycle. This will show your lenders you are responsible, and this information about your on time payments will get sent back to CIBIL. Eventually your score will go up.
As for your job prospects, it has become more commonplace for an employer to check a CIBIL score of a potential hire. It’s not clear how widespread the policy is within government departments, but it certainly does happen within the public and private sectors. A bad score does not necessarily mean you will not be hired, but if you are showing a lot of debt some institutions might be reluctant to hire. Again, this is not everywhere – but there is no denying it happens.
Your best option is to fast track your CIBIL rebuilding with a secured credit card – or an existing credit card. Start getting lots and lots of on-time payments to your accounts and watch your CIBIL score go up.
Best of Luck,
CreditSmart Staff CreditSmart
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