If you have ever applied for any financial services, then you may be aware of the term ‘Credit Score.’ A Credit Score or CIBIL Score is a 3-digit number which is allotted to each individual and is computed based on his/her financial history. Nowadays, you can also opt for a credit card apply app facility offered by leading lenders in case if you are looking for a credit card.
No matter what finance facility that you may opt for, you need to have a robust CIBIL Score of 700-750+ for getting quick approval at a lower rate of interest. In the same context, here are some quick CIBIL Score myths debunked in this article that will help you approach an online credit card application with confidence. Read on!
A Quick Look At Some Cibil Score Myths
- Your Credit Score Will Come Down If You Inspect It
It is one of the absurd myths that have gained popularity, but it’s not true at all. It is because when you wish to apply for a credit card via a credit card apply app and want to see your Credit Score, then it is considered as a soft inquiry. However, when a lender makes such a claim, it is considered hard and affects the CIBIL Score.
- No Credit Card Means No Better Cibil Score
The opposite is true! You should not cancel your existing credit card for the sake of increasing your Credit Score. In fact, no credit card means your available limit is brought down, and in turn, it increases the credit utilization ratio. Higher credit utilization leads to a poor Credit Score. Hence, you should try to utilize your credit cards cautiously and pay bills on time to keep the ratio under control.
- Your Income Decides Your Cibil Score
The income of an individual applying for a personal loan or a credit card has no role to play in determining the Credit rating. Anyone who is earning better but not paying the EMIs and other bills on time is bound to have a lower CIBIL Score. On the other hand, anyone having a lower salary, but paying the bills on time will surely have an increased Credit Score.
- Higher Bank Balances Mean Enhanced Cibil Score
No, your bank balance has nothing to do with the Credit Score. Even your investment profile or the ROI on it also has no relation with the CIBIL Score. It gets affected only by the way you handle your credit. Thus, even if you have a lower income, you can get a loan at a lower level with a CIBIL history that certifies your repayment history.
- Paying Bills On Time? No Need To Bother About Your Credit Report
Many people believe that paying online credit card bills and other loans EMIs on time means that they don’t need to worry about their CIBIL Score. But, in many cases, fraudsters steal people’s identity to avail loans and don’t repay it. As a result, it may affect your CIBIL Score. Hence, it is good to check your Credit Score once in every 2-3 months.
You are now aware of some Credit Score myths that you don’t need to worry about and apply for an online credit card easily via credit card apply app. Bajaj Finserv offers pre-approved deals on personal loans, credit cards, home loans and more. It is to ease off loan procedures and make it less time-consuming.