How does your employment status influence your CIBIL score? MintGenie explains

livemint.com:

Being rich is no guarantee of a high CIBIL score.  And being not-so-rich does not imply a poor credit score either. Likewise, being employed in a multinational corporation (MNC) doesn’t mean your credit score would be high, and being jobless also doesn’t adversely impact the score always.

So, one may say that employment status of a credit seeker does not influence the CIBIL score directly. However, this may still impact your credit score through its impact on the ability to make timely payment. 

A number of factors that are responsible for employment status to influence credit score include the following: ability to repay, credit application approval, credit utilisation, credit limit and loan amount.    

Income stability: Your employment status impacts your income stability, which influences your ability to repay debts. Banks often consider your income source and stability when assessing your creditworthiness.

Ability to repay: Employed individuals usually have a more stable income stream, making them more likely to repay loans on time. This influences their credit score positively. Unemployment may lead to difficulties in repaying debts, potentially affecting the credit score adversely.

Credit application approval: Some banks may require proof of employment as part of the credit application process. Being employed can raise your chances of credit approval, particularly for certain types of loans.

Credit utilisation: Employed individuals may have better access to credit, such as credit cards or personal loans, and when managed responsibly, can positively impact their credit score through a healthy credit mix and payment history.

Credit limit and loan amount: Banks may also consider borrower’s employment status at the