Capita World - Top 5 Myths About CIBIL Score

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​Top 5 Myths ​About CIBIL Score

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1. Myth:​ Only CIBIL provide a credit score. Fact:​ Apart from CIBIL, you have are 3 other options- Equifax, HighMark, and Experian, who can provide you credit score in India.

2. Myth:​ Don't check credit score, it will reduce your credit score. Fact:​ When a customer checks his credit score, it is a “soft inquiry”, which will not affect your score. However, If lenders (Banks, NBFC etc.) request for credit score, when you apply for credit, it is a hard inquiry. A Frequent request by lenders will negatively affect your credit score.

3. Myth:​ Poor CIBIL score means no loans Fact:​ If you have not defaulted in past, the lender may extend your loan with even low credit score. The rate of interest will slightly higher in such case.

4. Myth:​The CIBIL has a list of all defaulters Fact:​It’s not true. No credit score agency including CIBIL has any database of the defaulted customer.

5. Myth:​Your savings or investment will inflate CIBIL score Fact:​ No. The credit score is completely dependent on repayment behavior (payment of loans and credit) of an individual customer.

Reference Article:​ ​11 Myths About Cibil Score ____________________________________________________________________________ In case of ​any query​ related of Credit Score, CIBIL or loans, get ​free consultation here​. ____________________________________________________________________________


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