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6 Factors That Will Not Affect Your CIBIL Score

January 24, 2024 • 494 views

The struggle to identify the different factors affecting the CIBIL score and devise a strategy to improve your score is real. Since it is a common problem for many, over the years numerous myths have developed regarding these factors that borrowers consider true.

In this blog, we’ll bust the top 6 myths around CIBIL score and identify which financial habits do not affect it. Read on to know more!

6 Major Factors That Will Not Affect Your CIBIL Score

Myths about the factors affecting CIBIL score can influence you to take measures that negatively impact your finance management.Here are the 6 common factors that don’t affect your CIBIL score:

1. Using a Debit Card for Payments

CIBIL score is completely independent of all the transactions that you make through your debit cards. Only credit card transactions are recorded for the calculation of your CIBIL score. Thus, you can make endless transactions with your debit card without worrying about your CIBIL score being impacted.

2. Decrease in Earnings

Your income does not impact your CIBIL score as the score does not represent your earning capacity. Instead, CIBIL's sole responsibility is to represent your ability to manage debt. If you timely repay the debt, then your decrease in income would not affect your CIBIL score.

3. Marriage

Some couples doubt that their credit reports may be affected after marriage if one of the partners has a bad credit score. However, this is not true. You and your partner will continue to have a separate CIBIL report even after marriage. CIBIL score only gets affected when couples make errors in repayment after making joint purchases through credit.

4. High Interest Rates

A high interest rate does not impact your CIBIL score, instead, it only affects your savings account. Even if you earn a high interest rate on your savings account, your CIBIL score only depends on your credit management ability. Therefore, you can earn huge interest on a savings account without worrying about its impact on your credit score.

5. Seeking Credit Counselling

Taking counselling from credit experts never affects your CIBIL score. You can seek their advice and improve your finance management skills. You can also attend as many credit counselling sessions as you want because these are not recorded in your credit report. Thus, anything that is not recorded in your credit report does not affect the CIBIL score.

6. Denied Credit Application

This is one of the biggest myths about the factors affecting CIBIL score. Rejection of your credit application does not affect your CIBIL score as it doesn’t get reflected in your credit report. Hence, anything that is not reported, does not affect your CIBIL score.

However, you should avoid applying for any form of credit multiple times if your application is rejected. If you do, then lenders may deem you as a risky borrower who is dependent on credit. You should check the CIBIL score, before applying for any form of credit.

Also Read - How to Improve CIBIL Score to Get a Loan at Lower Interest Rates?

How to Check Your CIBIL Score Online for Free?

The importance of a CIBIL score is known by every individual who is looking for a loan. It plays a key role for those looking to meet both personal and business requirements. You can check the CIBIL score factor chart to determine your creditworthiness as per the lenders.

To check your CIBIL score for free from Poonawalla Fincorp, just follow the steps below:

  • Step 1: Click on ‘Free CIBIL Score’.
  • Step 2: Specify your gender and the type of employment in the form.
  • Step 3: Enter personal details and PAN Card details.
  • Step 4: Click on ‘Agree’ and submit your form.

Your CIBIL report containing the CIBIL score will be soon delivered to your mail, which you can download to check the complete report.

Also Read - What is Minimum CIBIL Score Required to Get A Personal Loan?

To Conclude

There are lots of myths surrounding the different factors affecting CIBIL scores. However, knowing the false ones from the right ones can help you get a clearer idea on how to manage your CIBIL score and credit history.

Check your CIBIL score right now and fulfil your financial goals with Poonawalla Fincorp!

Frequently Asked Questions

1. What is a good CIBIL Score?

According to the CIBIL score factor chart, any score between 750 and 900 is excellent and any score between 700 to 749 is good. This represents that you are a responsible borrower and have high creditworthiness.

2. Why should you not constantly apply for credit?

Constantly applying for credit makes lenders think that you are over-dependent on credit. This can negatively affect your CIBIL score.

3. What are the advantages of a high CIBIL score?

A high CIBIL score can help you get loans at lower interest rates, quicker approvals, and better repayment terms.

Disclaimer

We take utmost care to provide information based on internal data and reliable sources. However, this article and associated web pages provide generic information for reference purposes only. Readers must make an informed decision by reviewing the products offered and the terms and conditions. Loan disbursal is at the sole discretion of Poonawalla Fincorp.
*Terms and Conditions apply

poonawalla fincorp team

Poonawalla Fincorp Team

Our team of expert writers and editors are passionate about providing authentic and valuable information on finance. Our aim is to simplify financial and finance-related concepts. We strive to help our readers become more aware and empowered to make informed financial decisions.

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