Your credit score can make or break your loan approval—but thanks to myths flying around, many Indians misunderstand how it works.
Is it true that checking your score lowers it? Does a paid-off loan instantly boost your rating?
Let’s debunk the biggest myths and explain what really shapes your CIBIL score, with help from Vizzve Finance.
Myth #1: Checking My Credit Score Will Lower It
🚫 False.
Self-checks are soft inquiries and don’t impact your score at all. Only lenders making hard inquiries (like during a loan application) can affect it.
✅ Vizzve Tip:
Use Vizzve’s platform to safely check your credit score without any negative effect.
Myth #2: Old Debts Don’t Matter After a Few Years
🚫 False.
Loan defaults or missed EMIs stay on your report for up to 7 years. They can still affect your score and future loan approvals.
✅ Vizzve Tip:
Even if it's old, settling or closing the loan shows responsibility and can positively influence lenders.
Myth #3: Paying Off a Loan Instantly Boosts My Score
🚫 Partially True.
Closing a loan can help in the long run, but if it was your only credit account, it might reduce your credit mix, temporarily dropping your score.
✅ Vizzve Tip:
Don’t close all your loans at once—maintain a healthy mix of credit cards and loans to show financial maturity.
Myth #4: A Low Salary Means a Low Credit Score
🚫 False.
Your income level doesn't directly impact your credit score. What matters is how you manage your credit—repayment history, credit utilization, etc.
✅ Vizzve Tip:
Even with a modest income, on-time payments and low credit usage can give you an excellent score.
Myth #5: Missing One EMI Isn’t a Big Deal
🚫 False.
A single missed payment can knock off 50–100 points, especially if your score was already low.
✅ Vizzve Tip:
Set EMI reminders via Vizzve and opt for auto-debit to avoid penalties and score dips.
What Really Affects Your Credit Score?
| Factor | Weightage |
|---|---|
| Repayment History | 35% |
| Credit Utilization | 30% |
| Credit Age | 15% |
| Credit Mix | 10% |
| Inquiries | 10% |
💡 These percentages are standard across CIBIL, Experian, and other Indian credit bureaus.
Vizzve Finance Helps You Build Credit the Smart Way
With Vizzve, managing your credit score isn’t guesswork—it’s data-driven and transparent.
What We Offer:
📲 Free soft credit checks anytime
💼 EMI tracking & reminders
🧾 Personalized loan offers based on your credit profile
📚 Credit education to break myths and build score confidence
🛡️ Ethical lending & privacy-first policies
FAQs: Credit Score Myths in India
1. Will closing my credit card hurt my score?
Yes, it might. It lowers your available credit, which can increase credit utilization ratio—a key scoring factor.
2. Can I improve my score in one month?
Not drastically. Real improvement takes 3–6 months of consistent repayment and usage patterns.
3. Do joint loans affect both borrowers' scores?
Yes. If the loan is delayed or defaulted, both credit scores will be impacted equally.
4. How often should I check my credit score?
At least once a quarter—and before applying for any loan.
5. Does Vizzve provide loans based on credit score?
Yes. Vizzve matches you with pre-approved and custom offers based on your current credit profile.
Final Take: Don’t Let Myths Ruin Your Credit Journey
Your credit score is your financial passport—and believing in myths can cost you approvals, higher EMIs, and peace of mind.
With Vizzve Finance, you can:
💬 Understand your score better
🔍 Track changes transparently
📈 Build your credit with expert help
👉 Stay informed. Stay empowered. Choose Vizzve.
Published on : 4th August
Published by : SMITA
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