For most people, their credit score is only considered when they need a bank loan for buying a house or a car. What they don’t know is that their credit score also plays a part in their employability.
In a recent write-up, we talked about how companies like Verity Intelligence look into a prospective hire’s financial status and a credit report plays a large part in this regard.
To put it simply, every Malaysian has their credit and loan information stored in a database managed by Bank Negara which is shared to lending institutions and banks nationwide.
Unfortunately, many take their credit score for granted. Repaying your PTPTN loan on time will positively influence your credit report but late repayments or defaulting on your loan could taint your report as an untrustworthy borrower, which may result in rejection of future loan applications. This can be a point of concern for companies looking to hire, greatly impacting your opportunities for gainful employment.
In a background screen, companies can determine a candidate’s reliability after they have consented to a credit check. Based on how the candidate has managed his/her debts and finances, credit reports offer employers a way to determine if there are issues to address, such as:
- Credit mismanagement
- Late fees payments
Companies can use background screening and credit checks to identify if a person is trustworthy and responsible around corporate assets and is in overall sound financial health so as to mitigate risks of blundering mismanagement or worse – unsavoury practices within the company.
Credit reports, while an insightful tool, needs to be combined with other types of screenings in order to best profile a candidate. For more information, check out our previous articles here or stay tuned to verityintel.com for future updates.
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