{"id":9246,"date":"2026-05-21T12:16:34","date_gmt":"2026-05-21T06:46:34","guid":{"rendered":"https:\/\/www.fatakpay.com\/blog\/?p=9246"},"modified":"2026-05-21T12:18:38","modified_gmt":"2026-05-21T06:48:38","slug":"facts-and-myths-about-credit-score","status":"publish","type":"post","link":"https:\/\/www.fatakpay.com\/blog\/credit-score\/facts-and-myths-about-credit-score\/","title":{"rendered":"Credit Score Myths &#038; Facts: What You Need to Know\u00a0"},"content":{"rendered":"\n<p><strong>Credit score myths<\/strong>&nbsp;can cost you real money, leading borrowers to avoid actions that help their score and repeat habits that hurt it. This guide busts the most common&nbsp;<strong>myths about credit score and CIBIL score<\/strong>&nbsp;with clear, factual corrections so you can manage your credit profile with confidence.&nbsp;<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_83 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.fatakpay.com\/blog\/credit-score\/facts-and-myths-about-credit-score\/#Understand_Your_Credit_Score_What_It_Really_Means\" >Understand Your Credit Score: What It Really Means&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.fatakpay.com\/blog\/credit-score\/facts-and-myths-about-credit-score\/#Common_Myths_About_Credit_Score\" >Common Myths About Credit Score&nbsp;<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.fatakpay.com\/blog\/credit-score\/facts-and-myths-about-credit-score\/#MYTH_1_Checking_Your_CIBIL_Score_Reduces_It\" >MYTH 1: Checking Your CIBIL Score Reduces It&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.fatakpay.com\/blog\/credit-score\/facts-and-myths-about-credit-score\/#MYTH_2_Closing_an_Old_Credit_Card_Improves_Your_Score\" >MYTH 2: Closing an Old Credit Card Improves Your Score&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.fatakpay.com\/blog\/credit-score\/facts-and-myths-about-credit-score\/#MYTH_3_Your_Income_and_Salary_Affect_Your_CIBIL_Score\" >MYTH 3: Your Income and Salary Affect Your CIBIL Score&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.fatakpay.com\/blog\/credit-score\/facts-and-myths-about-credit-score\/#MYTH_4_You_Need_a_Perfect_900_to_Get_a_Personal_Loan\" >MYTH 4: You Need a Perfect 900 to Get a Personal Loan&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.fatakpay.com\/blog\/credit-score\/facts-and-myths-about-credit-score\/#MYTH_5_You_Need_a_Credit_Card_to_Build_a_Credit_Score\" >MYTH 5: You Need a Credit Card to Build a Credit Score&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.fatakpay.com\/blog\/credit-score\/facts-and-myths-about-credit-score\/#MYTH_6_Carrying_a_Credit_Card_Balance_Improves_Your_Score\" >MYTH 6: Carrying a Credit Card Balance Improves Your Score&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.fatakpay.com\/blog\/credit-score\/facts-and-myths-about-credit-score\/#MYTH_7_Debit_Card_Usage_Builds_Credit_History\" >MYTH 7: Debit Card Usage Builds Credit History&nbsp;<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.fatakpay.com\/blog\/credit-score\/facts-and-myths-about-credit-score\/#Final_Thoughts\" >Final Thoughts&nbsp;<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Understand_Your_Credit_Score_What_It_Really_Means\"><\/span><strong>Understand Your Credit Score: What It Really Means<\/strong>&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A CIBIL score is a 3-digit number (300-900) that reflects your creditworthiness based purely on your credit&nbsp;behaviour, repayment history, credit&nbsp;utilisation, credit mix, and inquiry patterns. It has nothing to do with your income, savings, or bank balance. Scores above 750 unlock the best loan terms. Learn more:<a href=\"https:\/\/www.fatakpay.com\/blog\/personal-finance\/credit-score\/\" target=\"_blank\" rel=\"noreferrer noopener\">&nbsp;<\/a><a href=\"https:\/\/www.fatakpay.com\/blog\/personal-finance\/credit-score\/\" target=\"_blank\" rel=\"noreferrer noopener\">What Is CIBIL Score<\/a>&nbsp;|<a href=\"https:\/\/www.fatakpay.com\/blog\/personal-finance\/credit-score\/how-is-cibil-score-calculated\/\" target=\"_blank\" rel=\"noreferrer noopener\">&nbsp;<\/a><a href=\"https:\/\/www.fatakpay.com\/blog\/personal-finance\/credit-score\/how-is-cibil-score-calculated\/\" target=\"_blank\" rel=\"noreferrer noopener\">How Is CIBIL Score Calculated<\/a>&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Common_Myths_About_Credit_Score\"><\/span><strong>Common Myths About Credit Score<\/strong>&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"MYTH_1_Checking_Your_CIBIL_Score_Reduces_It\"><\/span><strong>MYTH 1: Checking Your CIBIL Score Reduces It<\/strong>&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>FACT: Checking your own CIBIL score is a soft&nbsp;inquiry,&nbsp;it has zero impact on your score, no matter how often you check.<\/strong>&nbsp;This is among the most widespread&nbsp;<strong>myths about CIBIL score<\/strong>&nbsp;in India. Only hard&nbsp;inquiries,&nbsp;triggered when a lender pulls your report during a loan application,&nbsp;reduce&nbsp;your score by 5-10 points. Checking your own score is not just safe; it is recommended at least once every three months.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"MYTH_2_Closing_an_Old_Credit_Card_Improves_Your_Score\"><\/span><strong>MYTH 2: Closing an Old Credit Card Improves Your Score<\/strong>&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>FACT: Closing an old credit card&nbsp;almost always&nbsp;hurts your&nbsp;score,&nbsp;it reduces your average credit age and increases your credit&nbsp;utilisation&nbsp;ratio.<\/strong>&nbsp;Length of credit history and credit mix&nbsp;contribute&nbsp;25% to your CIBIL score. Closing your oldest card shortens your average credit age and removes available credit limits, both of which negatively&nbsp;impact&nbsp;your score. Keep old cards open and use them lightly unless the fee outweighs the&nbsp;benefit.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"MYTH_3_Your_Income_and_Salary_Affect_Your_CIBIL_Score\"><\/span><strong>MYTH 3: Your Income and Salary Affect Your CIBIL Score<\/strong>&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>FACT: Income, salary, and employment status have zero direct influence on your CIBIL score, only credit&nbsp;behaviour&nbsp;matters.<\/strong>&nbsp;Among&nbsp;<strong>common credit score myths<\/strong>, this one causes the most confusion. A borrower earning \u20b95 Lakh per month who misses EMIs will score lower&nbsp;than one earning \u20b930,000 who pays on time. Credit bureaus do not receive income&nbsp;data,&nbsp;they only receive repayment and credit account data from lenders.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"MYTH_4_You_Need_a_Perfect_900_to_Get_a_Personal_Loan\"><\/span><strong>MYTH 4: You Need a Perfect 900 to Get a Personal Loan<\/strong>&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>FACT: No lender requires a 900 CIBIL&nbsp;score&nbsp;and most NBFCs approve loans at 650 or above.<\/strong>&nbsp;This is one of the most discouraging&nbsp;<strong>CIBIL score myths<\/strong>&nbsp;that stops eligible borrowers from even applying.&nbsp;FatakPay&nbsp;approves instant personal loans at 650+ CIBIL, no salary slip, disbursed in 7 minutes. A score of 750+ gets you the best interest rates, but 650+ is fully loan-eligible with the right lender.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"MYTH_5_You_Need_a_Credit_Card_to_Build_a_Credit_Score\"><\/span><strong>MYTH 5: You Need a Credit Card to Build a Credit Score<\/strong>&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>FACT: Personal loans, home loans, auto loans, and any RBI-reported credit product build your CIBIL score equally.<\/strong>&nbsp;Among&nbsp;<strong>common CIBIL score myths<\/strong>, the credit-card-or-nothing belief holds many borrowers back. Repaying a small personal loan consistently for 12 months is enough for TransUnion CIBIL to generate a strong&nbsp;initial&nbsp;score. Credit cards are one tool, not a prerequisite.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"MYTH_6_Carrying_a_Credit_Card_Balance_Improves_Your_Score\"><\/span><strong>MYTH 6: Carrying a Credit Card Balance Improves Your Score<\/strong>&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>FACT: Paying your credit card balance in full every month is better for your score than carrying a partial balance.<\/strong>&nbsp;Some borrowers believe that&nbsp;maintaining&nbsp;a balance&nbsp;demonstrates&nbsp;active credit use. It does&nbsp;not,&nbsp;it raises your credit&nbsp;utilisation&nbsp;ratio and increases interest costs. Paying in full, on time, every month is what&nbsp;<strong>credit score facts<\/strong>&nbsp;consistently show improves scores fastest.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"MYTH_7_Debit_Card_Usage_Builds_Credit_History\"><\/span><strong>MYTH 7: Debit Card Usage Builds Credit History<\/strong>&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>FACT: Debit cards are not credit products and have no impact whatsoever on your CIBIL score or credit history.<\/strong>&nbsp;Debit cards draw from your own&nbsp;funds,&nbsp;no credit is extended, no repayment is tracked, and no data is&nbsp;submitted&nbsp;to credit bureaus. Only credit cards, loans, and overdraft facilities appear on your credit report and influence your score.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Final_Thoughts\"><\/span><strong>Final Thoughts<\/strong>&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>These&nbsp;<strong>facts about credit score and CIBIL score<\/strong>&nbsp;show that good credit management is less complicated than the&nbsp;<strong>myths about CIBIL score<\/strong>&nbsp;make it seem, pay on time, keep&nbsp;utilisation&nbsp;low, and check your report regularly.&nbsp;<strong>Facts about CIBIL score<\/strong>&nbsp;and clear information are your biggest&nbsp;advantage.&nbsp;<a href=\"https:\/\/www.fatakpay.com\/check-cibil-score\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Check your CIBIL score<\/strong><\/a>&nbsp;free&nbsp;on&nbsp;FatakPay&nbsp;and take your next step toward smarter credit.&nbsp;<\/p>\n\n\n\n<script type=\"application\/ld+json\">\n{\n  \"@context\": \"https:\/\/schema.org\/\", \n  \"@type\": \"BreadcrumbList\", \n  \"itemListElement\": [{\n    \"@type\": \"ListItem\", \n    \"position\": 1, \n    \"name\": \"Home\",\n    \"item\": \"https:\/\/www.fatakpay.com\"  \n  },{\n    \"@type\": \"ListItem\", \n    \"position\": 2, \n    \"name\": \"Blog\",\n    \"item\": \"https:\/\/www.fatakpay.com\/blog\"  \n  },{\n    \"@type\": \"ListItem\", \n    \"position\": 3, \n    \"name\": \"Credit Score\",\n    \"item\": \"https:\/\/www.fatakpay.com\/blog\/credit-score\"  \n  },{\n    \"@type\": \"ListItem\", \n    \"position\": 4, \n    \"name\": \"Credit Score Myths & Facts\",\n    \"item\": \"https:\/\/www.fatakpay.com\/blog\/credit-score\/facts-and-myths-about-credit-score\"  \n  }]\n}\n<\/script>\n\n\n\n<script type=\"application\/ld+json\">\n{\n  \"@context\": \"https:\/\/schema.org\",\n  \"@type\": \"BlogPosting\",\n  \"mainEntityOfPage\": {\n    \"@type\": \"WebPage\",\n    \"@id\": \"https:\/\/www.fatakpay.com\/blog\/credit-score\/facts-and-myths-about-credit-score\"\n  },\n  \"headline\": \"Credit Score Myths & Facts: Common CIBIL Myths Debunked\",\n  \"description\": \"Discover common credit score myths and facts. Learn the truth behind CIBIL score myths and how they impact your credit and loan eligibility with FatakPay.\",\n  \"image\": \"https:\/\/www.fatakpay.com\/navbar-assest\/Logo-2.png\",  \n  \"author\": {\n    \"@type\": \"Organization\",\n    \"name\": \"FatakPay\",\n    \"url\": \"https:\/\/www.fatakpay.com\"\n  },  \n  \"publisher\": {\n    \"@type\": \"Organization\",\n    \"name\": \"FatakPay\",\n    \"logo\": {\n      \"@type\": \"ImageObject\",\n      \"url\": \"https:\/\/www.fatakpay.com\/navbar-assest\/Logo-2.png\"\n    }\n  },\n  \"datePublished\": \"21-05-2026\"\n}\n<\/script>\n","protected":false},"excerpt":{"rendered":"<p>Credit score myths&nbsp;can cost you real money, leading borrowers to avoid actions that help their score and repeat habits that hurt it. This guide busts the most common&nbsp;myths about credit score and CIBIL score&nbsp;with clear, factual corrections so you can manage your credit profile with confidence.&nbsp; Understand Your Credit Score: What It Really Means&nbsp; A<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[164],"tags":[],"class_list":{"0":"post-9246","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-credit-score"},"_links":{"self":[{"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/posts\/9246","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/comments?post=9246"}],"version-history":[{"count":2,"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/posts\/9246\/revisions"}],"predecessor-version":[{"id":9249,"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/posts\/9246\/revisions\/9249"}],"wp:attachment":[{"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/media?parent=9246"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/categories?post=9246"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/tags?post=9246"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}