{"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":"2026-07-01T13:53:54","modified_gmt":"2026-07-01T08:23:54","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 class=\"wp-block-paragraph\">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;<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 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><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.fatakpay.com\/blog\/credit-score\/facts-and-myths-about-credit-score\/#Myth_8_Having_No_Loans_Means_a_Perfect_Credit_Score\" >Myth 8:&nbsp;Having No Loans Means a Perfect Credit Score<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.fatakpay.com\/blog\/credit-score\/facts-and-myths-about-credit-score\/#Myth_9_Paying_Off_All_Debts_Instantly_Improves_Your_Score_Overnight\" >Myth 9:&nbsp;Paying Off All Debts Instantly Improves Your Score Overnight<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.fatakpay.com\/blog\/credit-score\/facts-and-myths-about-credit-score\/#Myth_10_A_Low_Credit_Score_Means_Loan_Rejection_Is_Guaranteed\" >Myth 10:&nbsp;A Low Credit Score Means Loan Rejection Is Guaranteed<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" 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 class=\"wp-block-paragraph\">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. To learn more, read our detailed guide on&nbsp;<em><a href=\"https:\/\/www.fatakpay.com\/blog\/credit-score\/what-is-cibil-score\/\" target=\"_blank\" rel=\"noreferrer noopener\">what is a CIBIL score<\/a><\/em>.<\/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 class=\"wp-block-paragraph\"><strong>FACT: <\/strong>Checking your own CIBIL score is a soft&nbsp;inquiry,&nbsp;it has zero impact on your score, no matter how often you check.&nbsp;This is among the most widespread&nbsp;myths about CIBIL score&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 class=\"wp-block-paragraph\"><strong>FACT: <\/strong>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.&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 class=\"wp-block-paragraph\"><strong>FACT: <\/strong>Income, salary, and employment status have zero direct influence on your CIBIL score; only credit&nbsp;behaviour&nbsp;matters.&nbsp;Among&nbsp;common credit score myths, 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 class=\"wp-block-paragraph\"><strong>FACT: <\/strong>No lender requires a 900 CIBIL&nbsp;score,&nbsp;and most NBFCs approve loans at 650 or above.&nbsp;This is one of the most discouraging&nbsp;CIBIL score myths&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 class=\"wp-block-paragraph\"><strong>FACT: <\/strong>Personal loans, home loans, auto loans, and any RBI-reported credit product <a href=\"https:\/\/www.fatakpay.com\/fatakudaan-credit-builder\" target=\"_blank\" rel=\"noreferrer noopener\">build your CIBIL score<\/a> equally.&nbsp;Among&nbsp;common CIBIL score myths, 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 class=\"wp-block-paragraph\"><strong>FACT:<\/strong> Paying your credit card balance in full every month is better for your score than carrying a partial balance.&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;credit score facts&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 class=\"wp-block-paragraph\"><strong>FACT: <\/strong>Debit cards are not credit products and have no impact whatsoever on your CIBIL score or credit history.&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<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Myth_8_Having_No_Loans_Means_a_Perfect_Credit_Score\"><\/span><strong>Myth 8:<\/strong>&nbsp;Having No Loans Means a Perfect Credit Score<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Fact:<\/strong>&nbsp;Having no credit history means there\u2019s nothing for lenders to evaluate which can actually make approvals harder. Building&nbsp;credit history&nbsp;through responsible borrowing (like small unsecured loans) shows your ability to repay and builds trust over time.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Myth_9_Paying_Off_All_Debts_Instantly_Improves_Your_Score_Overnight\"><\/span><strong>Myth 9:&nbsp;<\/strong>Paying Off All Debts Instantly Improves Your Score Overnight<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Fact:<\/strong>&nbsp;While paying off dues helps, credit score improvement takes time.<br>Your credit report reflects consistency that lenders look for steady, timely payments across several months. Quick fixes or sudden repayments won\u2019t cause an instant jump.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Myth_10_A_Low_Credit_Score_Means_Loan_Rejection_Is_Guaranteed\"><\/span><strong>Myth 10:&nbsp;<\/strong>A Low Credit Score Means Loan Rejection Is Guaranteed<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Fact:<\/strong>&nbsp;Not true!<br>Many digital lenders like FatakPay assess more than just your score. Income stability, repayment history, and affordability are equally important. You can still access an&nbsp;<a href=\"https:\/\/www.fatakpay.com\/instant-loans-online\" target=\"_blank\" rel=\"noreferrer noopener\">instant loan<\/a>&nbsp;for a low CIBIL score, especially through responsible, RBI-compliant digital lending platforms. This helps debunk the&nbsp;credit score misconceptions&nbsp;that prevent many from accessing the credit they deserve.<\/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 class=\"wp-block-paragraph\">These&nbsp;facts about credit score and CIBIL score&nbsp;show that good credit management is less complicated than the&nbsp;myths about CIBIL score&nbsp;make it seem, pay on time, keep&nbsp;utilisation&nbsp;low, and check your report regularly.&nbsp;Facts about CIBIL score&nbsp;and clear information are your biggest&nbsp;advantages.&nbsp;<a href=\"https:\/\/www.fatakpay.com\/check-cibil-score\" target=\"_blank\" rel=\"noreferrer noopener\">Check your CIBIL score<\/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":9337,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[164],"tags":[],"class_list":["post-9246","post","type-post","status-publish","format-standard","has-post-thumbnail","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":10,"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/posts\/9246\/revisions"}],"predecessor-version":[{"id":10109,"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/posts\/9246\/revisions\/10109"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/media\/9337"}],"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}]}}