IBPS Mandates Minimum CIBIL Score Of 650 For Bank Job Applicants

If you aspire to secure a job in the banking sector, beyond academic merit and hard work, maintaining a ‘healthy’ Credit Information Bureau (CIBIL) score has become a crucial criterion. The Institute of Banking Personnel Selection (IBPS), the primary recruitment agency for the banking sector, has introduced a new credit history clause for job applicants. According to the notification, candidates seeking positions in banks must ensure they maintain a “healthy Credit history and shall have a minimum CIBIL score of 650 or above at the time of joining.”

This development underscores the significance of a good credit score in not only securing a job in the banking sector but also facilitating easier access to loans. Failing to achieve a satisfactory CIBIL score can significantly diminish one’s chances of employment in this sector. However, individuals can take proactive steps to improve a less-than-ideal credit score.

Here are a few strategies to enhance your CIBIL score:

Timely Bill Payments: It is crucial to pay bills, especially credit card dues, before the due date. Late payments not only attract penalties but also adversely impact the credit score.

Prudent Credit Card Usage: If offered the opportunity to increase your credit card limit, exercise caution. Fully exhausting the credit limit raises the credit utilization ratio, which can contribute to a lower credit score.

Understanding Loan Settlement: Distinguish between ‘loan settlement’ and ‘loan closure.’ Loan settlement occurs when an agreement is reached with the bank due to an inability to repay the loan on time. This negatively affects your credit history and CIBIL score.

Strategic Credit Card Usage: Using credit cards responsibly can contribute positively to your CIBIL score. Making timely payments via credit cards reflects positively on your credit history.

The integration of credit history and CIBIL scores as a selection criterion in banking job applications highlights the increasing importance of financial responsibility. Applicants are encouraged to be proactive in managing and improving their credit scores, not only for career opportunities but also for overall financial well-being. As the banking sector evolves, financial institutions are placing greater emphasis on holistic assessments of applicants, including their creditworthiness.