Busting The CIBIL Score Myths

Cibil Score


When we have insufficient knowledge of what terms like credit score and credit report mean or how these are calculated or just what these terms indicate about our financial status, we tend to base our decisions on a series of misconceptions that are outright baseless.

To help you make clear financial decisions that are based on correct knowledge, here we present to you the various myths that are associated with the CIBIL score.

Cibil score

The List of myths:


Myth No. 1: The more the income, the better is your credit score.

In the formula that the various agencies use to calculate your credit score, your income never comes into play. A credit score is only indicative of your ability to pay off loans or credit card bills.


Myth No. 2: You should avoid checking your credit report frequently as it lowers the credit score.

This one is based on the fact that frequent hard inquiries by the lenders dwindles your credit score. You, checking your own credit report, is a different thing. You can opt for soft inquiries for your credit report, and this will not affect your credit score at all.


Myth No. 3: A person can have only one credit score.

You get your credit score calculated from two different agencies. Will both the scores be the same?

Maybe, but may not be. Different agencies calculate the credit score differently. Different creditors use the credit scores generated by different companies, each having their own method.


Myth No. 4: When you get a new credit card, it lowers your credit score.

When you get a new credit card, your credit score does go down but only minutely. This decrease in score can be easily compensated by regular and responsible use of the card.


Myth No. 5: Balance on your credit card will lead to a healthy credit score

If you have a balance on your credit card for several months in a row while having pending bills, it will have a negative effect on your score. Such a condition presents you as someone irresponsible in the eyes of the creditor.


Myth No. 6: A married couple will have one credit score

A married couple is still a pair of two individuals. The score is reflected on the account on which the debt is taken. If the loan is on account of one person, it will affect the score of that person only.


Myth No. 7: Closing all your credit accounts will build your credit score.

If you have balances to be paid off, and you close your credit cards, it will have an adverse effect on your situation. This is the most baseless of all the myths we have talked about.



As consumers, what you should know is that you just have to be a prudent user of the card in order to maintain a good credit score and a lifestyle free of the debt trap. You should know what affects your score and what doesn’t. Have your credit score concepts clear. Don’t let the clouds of myths shower on your decisions.

Related Article: How CIBIL score impacts your home loan?


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