Common Myths About CIBIL Score

Understanding the CIBIL score is not as difficult as it seems. However, several misconceptions and myths centre around this idea. Due to a lack of knowledge, many people are unaware of the importance of having a CIBIL score, especially a “good” CIBIL score in loan acceptance. But knowing the importance of a good credit score is vital to displaying creditworthiness to the lender. 

Importance Of CIBIL Score

CIBIL score is a mathematical term for your payment. It shows your credit history, whether you pay loans on time, and if you maintain a good balance of secured or unsecured loans. In other terms, the CIBIL report reveals the transaction history and calculates a score for each application that determines whether they qualify for the loan or not. 

For instance, if your score falls between 300 and 700, your CIBIL score is poor. However, the report indicates a good payment history if your score falls between 700 and 900. Lenders use the credit score to assess your ability to repay the loan with interest on time and whether your loan application will be approved. So maintaining a high CIBIL score record is essential.

7 Common Myths About CIBIL Score

CIBIL attempts to increase transparency in the loan approval process. However, this goal is frequently misinterpreted. The following are seven common misconceptions individuals have regarding a CIBIL score:

MYTH-1: Regular checking will reduce the credit score

Checking the CIBIL score has no impact on the credit score. You are free to check as often as you like. Additionally, you can raise your score by monitoring it and changing your payment habits if necessary.

MYTH-2: A bad credit score doesn’t change.

A low credit score indicates a history of poor transactions. However, it doesn’t imply that the result will remain static forever. The report can show a higher score if you work to raise your CIBIL score. A poor transaction typically remains on the record for three years, whereas payment default and bankruptcy stay on the report for 10. However, the score can finally change for the better with careful strategic development in the payment records.

MYTH-3: Having a credit balance can boost the score.

Credit balance doesn’t boost the score. Instead, it can lower the score if the pending credit bills are not paid on time. 

MYTH-4: Income impacts the CIBIL score.

Your transaction history and credit card performance determine your credit score. In other words, even if you make Rs. 24 lakhs a year and have a low credit score, it will show that you have had poor credit behaviour.

MYTH-5: Student loans don’t get affected by the CIBIL score.

Whether it is a home loan, car loan, mortgage or student loan, all can affect the CIBIL score equally. 

MYTH-6: The CIBIL score merges after getting married.

There is no concept of merging the credit scores. The existence of a joint account has no impact on the credit history or score. You can make a CIBIL score login and check the score to be assured. 

MYTH-7: Debit cards can build a good credit score.

Paying using a debit card is equal to paying with cash. The funds in the bank account are used to make payments. As a result, it has no impact on the final score.


The significance of a good credit score has grown over time. Despite the misconceptions concerning credit scores, many people who understand their importance strive to maintain a good credit score. The blog has attempted to clear several widespread misconceptions concerning credit ratings. If the above information hasn’t convinced you, you can always make a CIBIL score login to clear your misunderstanding. 

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