Top Myths About CIBIL Score

There are a number of common misconceptions concerning credit scores that might distort a borrower’s judgment. Applying for a credit card or a loan requires a good credit score. The premium you pay and the coverage you get may both be influenced by your credit score.

  • By cibil score check free, my credit score will go down 

The majority of people have this fundamental misunderstanding of credit scores. The process of requesting your credit score is considered a “soft inquiry” and has no negative impact on your credit rating. In fact, your approval odds improve with each update to your credit report. You can easily do a cibil score check free from your phone anytime anywhere.

  • One of the factors that determines my credit score is my salary.

Your salary has zero bearing on your credit score because it is not included in the information used to determine your creditworthiness. This means that even if your base salary is Rs. 15 lakh, your credit score may be low if your credit behavior is poor. Even if a person’s income is relatively low, a high credit score is still possible if their credit history is positive. This includes things like paying bills on time and using credit sparingly.

  • Eliminating dormant accounts is one way to raise a good credit score.

There is a widespread misconception that carrying more than two credit cards will negatively affect a person’s FICO score. As a result, people frequently abandon dormant credit card accounts and open new ones. Closing an old credit account will result in a shorter credit history, which can have unintended consequences. Lenders gain deeper insight into your credit behavior with a longer credit history. But if you fear losing your credit card or abusing it, it may be time to cut up the plastic and start over.

When applying for the best credit cards or a loan, your credit score is a major determining factor. Many people make it a priority to keep their CIBIL score high so that potential lenders will have some notion of how responsible they are with their money. Nonetheless, there are numerous misconceptions floating around the Internet regarding credit reports and ratings.

Additional Read: Process to Build CIBIL Score to be Qualified for Individual Loan


One comment

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s