Myths about CIBIL report busted

Dev Singhraha

Relocation Expert

Buyer worries extremely about their CIBIL score before they approach for the home loan, in fear I the score isn’t good then their request will be rejected. To a very extent, CIBIL score plays a very important role in one’s financial journey. It brings some kind of transparency in the entire loan process. If your loan lender says that your loan has been rejected because of bad CIBIL score then you have to take it at the face value. To understand it more, you can check your CIBIL score anytime.

There are some myths about the CIBIL score that needs to be addressed:

One of the most common CIBIL score related myth is that low credit score means no home loan or mortgage loan. There are many loan lenders in the market. If your loan request has been rejected by one, then ask them about the reason and approach another lender with the justifying document for the same. Every lender has their own rules for lending the loan.
Most of us believe that CIBIL scores if for the home loans only. It is not true. The CIBIL score is generated by the use of your credit card. Not only banks, CIBIL score helps in discipline the individual about their spending habits.
There is a myth that the CIBIL score contains your investments and assets. It is not true. The CIBIL score is mainly made of your loan and credit history.
There is a myth that CIBIL maintains the list of defaulters. It is absolutely not true. If you want to see your CIBIL score you can see it but if you are looking for a defaulter’s list, then you are looking in wrong place. CIBIL does not have any list of defaulters. The banks and financial institutes evaluate the CIBIL report based on their policies.
CIBIIL score of minus one (-1) is the best score. It means that you have never used your credit and it is clean. But for the banks to appraise your home loan process, they need to evaluate your credit history. Having a clean repayment track is better than having none at all.
Most people fear that if they check their CIBIL score regularly then their score will be affected negatively. It is not true. Checking your CIBIL score regularly will help you keep the track of your expenses. If you have different loans then checking it regularly makes more sense. It will help you in finding if there was any delay in any payment. If there was and it goes unnoticed, then it may reflect negatively in your score.

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