Common misconceptions about CIBIL score that you should know!

Misconceptions are like bacteria…They spread fast and if infested with for long can have an undesirable influence on your health.
Many of these misconceptions related to the CIBIL rating dwell at the back of mind and people unconsciously make loan decisions based on these untrue beliefs. Related to the many aspects of CIBIL rating like “how to boost your credit score”, CIBIL score check, “how to improve CIBIL rating and so on, a list of 6 myths stand busted below in the increasing order of importance.
He came, he saw, he decreased his score: Contrary to the popular belief, your own requests for a report do not lower your score. The bureau will send you a copy of the credit report whenever you request one, for a nominal fee. However, numerous inquires do affect your CIBIL rating and pull it down. The point of differentiation between the two is that a request is made by an individual to CIBIL in order to obtain his own score, while an inquiry is made by a lender to obtain any loan applicant’s score(individual’s score). Too many inquiries reduce one’s CIBIL rating as it speaks volumes about one’s credit greediness.
Cutting off credit cards will increase score: While it is a good practice to cut down credit card usage to 30 percent of the total credit card limit, getting rid of your credit cards will not increase your CIBIL rating. On the other hand, making timely bill payments and controlling your credit card usage are effective solutions to how to boost your credit score and how to improve CIBIL rating. Regular EMI and credit card bill payment is a practice followed by responsible debtors, and will entice creditors.
I defaulted, CIBIL blacklisted: Usually when an individual’s loan application is rejected by CIBIL, he falls into frenzy. Catering to the heaviness in his chest, he wonders about certain possibilities. “Why the rejection…Is it true…Am I blacklisted! ...Now, I will never get a loan…If possible, how to improve CIBIL score” or how to boost your credit score”. Before the frenzy takes over health, one should heave a sigh of relief. CIBIL does not maintain any blacklist. Lenders usually approve a loan based on an individual’s credit score and credit report. So, in case your loan has been rejected because of a low score, there are a plethora of tips on how to improve CIBIL score and how to boost your credit score.

Once a low ranker, always a low ranker: A common misconception prevalent among many is that if an individual ends up with a bad score, the score tags along with him forever. Well, that is false. Anybody can improve their score by following certain measures and exercising different methods. One of the popular and effective ways of how to boost your credit score and how to improve CIBIL score is by taking professional help from credit repair companies like Credit Sudhaar. One of the popular credit health management organizations, Credit Sudhaar offers a plethora of services as a solution to the frequently asked question, how to improve CIBIL score? Their list of services includes credit health checkup, issue resolution, score improvement module, free loan assistance, debt consolidation, and legal assistance. Depending upon the requirement of the customer, they offer customized plans. An example of the same is the Corporate Credit Improvement Plan which is an ideal solution for “how to boost your credit score” for companies.

Low income equals to a low CIBIL rating” Many are haunted by the thought that low income is a prime reason for a low score, which in turn affects their loan application. Well, income is neither directly nor inversely proportional to one’s CIBIL rating. It simply means that an individual’s income does not contribute to their score. However, a lender might choose to reject the loan application for other reasons. For example, if the loan applied for is unreasonably huge and your income range does not fit the eligibility criteria, the lender might reject the loan on eligibility grounds.
The one and only credit information provider, CIBIL: Not known to many, CIBIL, which is also an acronym for Credit Information Bureau (India) Limited is not the only credit bureau in India. Apart from CIBIL, there are three other credit bureaus namely Equifax, Experian, and CRIF High Mark who have the license to carry their operations in the country. CIBIL rating, CIBIL score and CIBIL report are the generic, informal names used for any credit score and credit report. So, when someone says “how to improve CIBIL rating”, it can mean credit score by any bureau.
Aesop fables state, “Neither a borrower nor a lender be”. Well, looking at the changing times, advent of technology and numerous facilities, the 620 BC Aesop would have reconsidered his statement and rectified the “misconception”.