Recently, Cred’s Founder and CEO, Kunal Shah, publicly stated that the company hires only employees with a credit score of 750 or above, emphasising that maintaining good credit behaviour is fundamental to its mission.
Shah added that in cases where employees have little or no credit history due to their age, they are given three months to achieve a minimum credit score of 750.
Though this approach is not so uncommon in BFSI companies handling sensitive financial information or where trustworthiness is paramount, how practical is this approach in the long run?
Will it be a loss or a gain for the firm if every candidate is evaluated on this parameter? What are the risks associated with hiring candidates for their credit scores? And, most importantly, is it a fair criterion to filter out the candidates in this way? Let’s ask the HR leaders.
Hire humans, not balance sheets!
Abhishek Gupta, Head – Human Resources, ZebPay, points out that hiring on the basis of credit score may sound operationally efficient, but it’s not strategically sound, especially in an economy like ours where financial literacy and access are still uneven. “We’re trying to build a future-ready workforce, not a credit-compliant one. Credit scores reflect repayment history, not work ethic. If someone struggled financially but showed up consistently for work, learned on the job, and delivered impact—that’s the story I’d rather bet on. At ZebPay, we hire humans, not balance sheets,” he says.
According to Gupta, ‘hiring for credit scores’ is less about fairness and more about context. A credit score without the context of the person’s life story is a dangerous lens. “We wouldn’t judge someone’s potential based on their school grades alone—why do it with a financial metric? Using it as a hard filter dismisses lived realities. The fairness question becomes even more critical when you’re trying to build a diverse, high-performing team. I’ve met people with modest credit scores but phenomenal character. That matters more,” he says.
How risky is hiring based on credit scores?
“You risk creating a workplace where ‘perfection’ becomes the entry ticket. And that’s risky. It deters second-chance seekers, underdogs, and those who have fought their way through adversity, which ironically, are often the most resilient hires. Also, it may promote a silent culture of fear—employees afraid to admit financial setbacks or seek help when needed. That’s a dangerous trade-off for the illusion of control. If you want financially literate employees, teach them. Don’t judge them,” Gupta says.A loss or gain is debatable
Manish Sinha, CHRO, Mahindra Finance, opines that the pre-employment credit score check can be used to assess an individual’s financial responsibility and integrity. For the Banking & NBFC industry, hiring and assessing credit history is crucial as it will assist in providing additional inputs of a candidate’s integrity while managing his/her own financial commitments.
“A credit score report does have multiple aspects that must be reviewed independently. Even though a low credit score may not necessarily indicate a lack of financial responsibility or a fraudulent personality, this will give us an indication of a candidate’s ability to handle large sums of money and sensitive customer information,” Sinha says.
Sinha points out that an equal opportunity organisation must not reject a candidate only on this criterion, which may prove to be biased and discriminatory. However, a few additional checks for any such candidate could be recommended.
“A loss or gain is debatable, as there cannot be a definitive pattern associated with good credit score candidates not indulging in fraud and vice-versa scenario. Credit checks can primarily be part of a larger background check, where candidates may be pre-informed of loss of employment if their scores are below a certain acceptable threshold. It is important to note that the selection of a candidate should be solely on his/her qualification, work experience, and fitment to the job on offer,” he says.
Why do these companies check the credit scores?
HDFC Securities checks the credit score for candidates who are selected for middle management and above roles. “As an organisation in the financial sector, it is critical that we uphold the standards on integrity and financial transparency, both internally with our employees and externally to our customers. It is very easy to conduct credit score checks and these are done with the prospective employee’s consent. The good news is that we have not seen cases where the score is lower than our threshold,” says Neetika Bhatia, CHRO, HDFC Securities.
“Still, we do not use this as a shortlisting or filtering out criteria, but the check is done after the candidate has completed all assessments and interviews. This is similar to background verification that is done across the industry to validate employment and academic history. It’s an additional confirmation that the candidate maintains a healthy financial profile. As our employees advise our customers on their financial investments, they are expected to provide sound and responsible advice, backed by research and data,” adds Bhatia.
HDB Financial Services checks the credit score of the candidate as part of its hiring process. “Being in the lending industry, financial responsibility is a key factor in our evaluation process. Yet, we evaluate candidates holistically, taking into account their skills, integrity, values, and overall role fit. Our broader assessment framework helps us build a workforce that aligns with the company’s values and business goals,” says Shirley Thomas, Head – Human Resource, HDBFS.
Reviewing credit scores is an extra layer of due diligence
Soonu Wadewala, Head – HR, Axis Securities, is of the view that looking at someone’s credit score when hiring can be a bit of a mixed bag. “Using credit scores as a reference point in the hiring process can be useful to assess a candidate’s financial discipline, particularly for roles that involve managing sensitive financial information or fiduciary responsibilities. In such contexts, a solid credit history may reflect accountability, reliability, and sound judgment. It’s like a quick peek into their financial habits,” she says.
“However, a credit score doesn’t always reflect a person’s skills, potential, or alignment with company culture and may be influenced by factors beyond their control. Reviewing credit scores is definitely an extra layer of due diligence. However, other factors like experience, qualifications and integrity should also be considered. This balanced approach ensures fairness in hiring, and protects the company from missing out on great talent,” she adds.
For certain roles where someone is directly handling the company’s money or has significant financial responsibilities, Wadewala says, “You could make the argument that looking at their credit history gives you some insight into how they manage their own finances. It’s almost like checking if they practise what they preach, especially when the job requires a high degree of financial discipline and trust.”
Wadewala sees it more as a potential gain for the company, “especially when we’re talking about roles where financial integrity is paramount. For sectors like banking, investment, or any business entrusted with highly sensitive financial information, incorporating credit scores as one of the criteria in their hiring toolkit can actually be a smart move. While it shouldn’t be the deciding factor for every single role, for those specific positions where financial prudence is key, it feels more like a ‘good to have’–a way to potentially mitigate risks and reinforce a culture of financial responsibility within the organisation.”
Understand the limitations
According to Wadewala, companies need to consider the candidates’ credit scores carefully. “Just because someone had some financial hiccups in the past doesn’t automatically mean they’re not capable or trustworthy in other areas. Ultimately, for it to feel fair, using credit scores needs to be done thoughtfully. It should be one piece of information among many, and relevant to the actual job duties. Also, transparency is key too. Candidates should know if this is part of the process and why,” she says.
Wadewala further says that the potential downside lies in how the criterion is used. If applied too heavily or without transparency, it could narrow the talent pool or create perceptions of bias. “The main thing is to avoid making it the be-all and end-all. It’s best to use it wisely, understand its limitations, and balance it with everything else you look for in a candidate,” she adds.