Cred Only Hires Employees with Credit Scores Above 750, Says Kunal Shah
Cred Only Hires Employees with Credit Scores Above 750, Says Kunal Shah
Cred, the Bengaluru-based fintech startup led by Kunal Shah, has set a unique hiring benchmark: a credit score of 750 or above is a prerequisite for employment. While an impressive resume and exceptional skills are crucial, candidates must also demonstrate financial responsibility to secure a role at the company.
This hiring practice, though rare in India, is common in developed nations, especially in industries dealing with sensitive financial data. Employers often conduct credit checks to assess a candidate’s financial behavior, ensuring alignment with their company’s core values.
Why Cred Prioritizes High Credit Scores
Shah has repeatedly emphasized that low credit scores are rarely intentional, stating that in 80-90% of cases, individuals are unaware of the factors affecting their score.
“If you are building products that drive responsible financial behavior, we have to live it first… We can’t promote financial discipline if we ourselves don’t embody it. While I would prefer a threshold of 800, many young professionals lack the necessary credit history to achieve that. A score of 750 is a reasonable expectation, and for those who don’t meet it, we provide three months to improve their score with our active support,” Shah explains.
He also notes that many individuals unknowingly have errors in their credit reports, such as unrecognized loan accounts, which can be resolved through disputes. Correcting such discrepancies can significantly improve their credit scores.
Financial Discipline and India’s Economic Growth
Shah believes that maintaining a strong credit score should be the standard for India’s affluent class, arguing that responsible credit usage is crucial for the country’s financial progress.
Akshay Aedula, Cred’s Head of Product, shared his own experience, revealing that a low credit score nearly cost him his job six years ago. He pointed out that 79% of Indians have faced negative consequences due to poor credit scores, largely due to a lack of awareness about the financial system.
Cred’s Expansion: Digital Credit Lines and Lending Growth
Cred continues to expand its financial offerings. With the Svalbard release, users can now pledge mutual fund investments to obtain digital credit lines at interest rates starting at 8.99%. This move is expected to strengthen the company’s lending capabilities.
As of February 5, Cred’s total loan portfolio has surpassed Rs 19,000 crore, according to Moneycontrol. Of this, Newtap Finance, Cred’s non-banking financial company (NBFC) arm, accounted for 2.7% of the total Assets Under Management (AUM), while the rest was facilitated through six other lending partners. Lending remains a core revenue stream for Cred, alongside payments and insurance services.
Additionally, the company is improving its credit card management system by launching a unified dashboard that consolidates statements from multiple credit cards, offering users a streamlined financial overview.
Cred’s Growth and Future Prospects
Founded in 2018, Cred achieved a valuation of $6.4 billion following a $140 million funding round in June 2022. The investment was led by Singapore’s GIC, with participation from Tiger Global, Sofina Ventures, Alpha Wave Ventures, and Dragoneer.
With a continued focus on financial responsibility, lending innovation, and user-friendly credit management tools, Cred is positioning itself as a leader in India’s fintech landscape.
