Indialends, 14 May 2026

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Common CIBIL Score Myths That Most People Believe

What’s Inside This Blog?

Myth 1: Checking My Own CIBIL Score Lowers It Myth 2: My Income or Salary Affects My CIBIL Score Myth 3: Closing Old Credit Cards Always Helps Myth 4: Paying the Minimum Due Fully Protects My CIBIL Score Myth 5: A CIBIL Score of -1 Means Bad Credit Myth 6: Settling a Loan is the Same as Closing It Myth 7: More Savings Means a Better CIBIL Score Myth 8: My Spouse’s CIBIL Score Affects Mine Myth 9: Once I Reach 750, I Can Stop Monitoring My Score Myth 10: A Perfect 900 CIBIL Score is Necessary Myth 11: Credit Repair Companies Can Quickly Fix My Score Myth 12: Debit Card and Bank Transactions Build CIBIL Score Summary: CIBIL Score Myths vs Facts Check Your Real CIBIL Score Conclusion

Credit awareness in India has grown, but so has misinformation around CIBIL scores. Many people follow outdated advice that can actually damage their credit health instead of improving it.

This guide debunks the most common CIBIL score myths and explains what really affects your credit score in India.

Myth 1: Checking My Own CIBIL Score Lowers It

This is false. Checking your own CIBIL score is a soft inquiry and has no impact on your score. Only lender-initiated hard inquiries made during loan or credit card applications may temporarily affect your score.

Myth 2: My Income or Salary Affects My CIBIL Score

Your income does not directly affect your CIBIL score. CIBIL tracks your borrowing and repayment behaviour, not your salary, savings balance, or assets.

Myth 3: Closing Old Credit Cards Always Helps

Closing old credit cards can hurt your score because it reduces your total available credit limit and may shorten your credit history. If an old card has no high annual fee, keeping it active can be useful.

Myth 4: Paying the Minimum Due Fully Protects My CIBIL Score

Paying the minimum due helps you avoid a late payment mark, but the remaining balance continues to attract interest and can keep your credit utilization high. Paying the full balance is better for your score.

Myth 5: A CIBIL Score of -1 Means Bad Credit

A CIBIL score of -1 means there is no credit history available. It does not mean bad credit. It simply means CIBIL does not have enough borrowing and repayment data to generate a score.

Myth 6: Settling a Loan is the Same as Closing It

A Closed account means you paid the full outstanding amount. A Settled account means you paid less than the full amount after negotiation. Settled status is negative and can affect future loan approvals.

Myth 7: More Savings Means a Better CIBIL Score

Savings account balance, fixed deposits, mutual funds, or investments do not directly improve your CIBIL score. Credit score depends on how responsibly you use loans and credit cards.

Myth 8: My Spouse’s CIBIL Score Affects Mine

Credit scores are individual in India. Your spouse’s CIBIL score does not affect yours unless both of you are joint borrowers or guarantors on the same loan.

Myth 9: Once I Reach 750, I Can Stop Monitoring My Score

A 750+ score is strong, but it is not permanent. Missed payments, credit report errors, high utilization, or identity fraud can reduce your score. Regular monitoring is still important.

Myth 10: A Perfect 900 CIBIL Score is Necessary

A perfect 900 score is not necessary. A score above 750 is generally enough to access strong loan offers, good interest rates, and premium credit products.

Myth 11: Credit Repair Companies Can Quickly Fix My Score

No legitimate company can instantly fix your CIBIL score. They may help dispute genuine errors, but accurate negative entries cannot be removed quickly for a fee. Be cautious of false promises.

Myth 12: Debit Card and Bank Transactions Build CIBIL Score

Debit card usage, UPI payments, salary credits, and savings account activity do not build your CIBIL score. Only formal credit products such as loans and credit cards are reported to credit bureaus.

Summary: CIBIL Score Myths vs Facts

Check Your Real CIBIL Score

Now that you know the facts, check your real CIBIL score and understand your credit health clearly.

Check Your Free CIBIL Score Now

Conclusion

Understanding what really affects your CIBIL score helps you avoid costly mistakes. Focus on timely payments, low credit utilization, active credit monitoring, and responsible borrowing instead of following common myths.