Credit Score Facts You Didn’t Know

By BankBazaar | February 27, 2019

Do you often feel that there is a lot of ambiguity around your Credit Score? We’ll clear the air and state some facts about your Credit Score you didn’t know.   

Puzzled by the obscurity around your Credit Score? Well, worry not. In this article, we will share with you some amazing facts about your Credit Score that you didn’t know. Are you ready? 

Additional Reading: 3 Things You Should Know About Your Credit Score 

Your Credit Score isn’t impacted by your savings and investments  

Defaulted on your Credit Card but have huge Fixed Deposits and money invested in several top performing Mutual Funds? Well, we’re sorry to break it to you that this will not benefit your Credit Score. CIBIL doesn’t take into account any of your savings information or any assets that you own.  

Your Credit Score is only a reflection of your credit history. Which means, any information pertaining to your Credit Card, or EMIs on your loans such as a Home Loan or a Car Loan will only get reflected. So, if you diligently make repayments you are bound to improve your Credit Score. 

You can make multiple soft enquiries of your Credit Score 

A direct enquiry about your Credit Score from any credit bureau or through an authorized thirdparty entity is a soft enquiry. Making innumerable soft enquiries does not affect your Credit Score in any way.  

However, when Credit Card/loan companies or other creditors enquire about your credit report from the credit bureaus, it is a hard enquiry and this impacts your Credit Score. 

Additional Reading: These 4 Commonly-Held Credit Card Beliefs Are Hurting Your Credit Score 

Credit bureaus cannot edit your credit information on your credit report directly 

Although credit bureaus generate your credit report, they do so with the inputs provided by various banks and other NBFCs (Non-Banking Financial Companies). They do not hold the authority to edit/delete your credit information directly. Rather, they can only update your credit report based on the details provided by the concerned lenders 

No credit history doesn’t mean excellent Credit Score 

If you’re of the opinion that having no credit history would mean that you have a good Credit Score, then you couldn’t be more wrong! This is a common myth about Credit Score. Although, you should know that even if you don’t have a credit history, you would still have a Credit Score. However, it won’t be something you can brag about.  

Your Credit Score exists even if you have never checked it 

There’s just one simple rule to your Credit Score. If you’ve got a credit history, then you’ve got a Credit Score! So, irrespective of the fact that whether you have checked your Credit Score or not, your Credit Score will exist if you have ever borrowed money from a bank or have had a Credit Card. Banks and other NBFCs send in a monthly report of their borrowers credit transaction history to credit bureaus. 

Additional Reading: What Are The Components Of Your Credit Score? 

Low Credit Score doesn’t always mean no loan  

While the rules may vary for various banks, a low Credit Score doesn’t always mean no loan at all. You could still get a loan, but you may not get the best interest rates as compared to someone with a good Credit Score.  

You’re entitled to a free credit report every year 

Did you know that you can get your Credit Score for free once in a year? RBI has directed all credit bureaus to provide individuals whose credit information they hold with a free credit report once a year. In case, you need this report more than once then it can be made available to you, but at a small fee.  

That said, there’s one place where you can check your Credit Score for absolutely no cost at all. So, are you ready to get your FREE Experian Credit Score? 

All information including news articles and blogs published on this website are strictly for general information purpose only. BankBazaar does not provide any warranty about the authenticity and accuracy of such information. BankBazaar will not be held responsible for any loss and/or damage that arises or is incurred by use of such information. Rates and offers as may be applicable at the time of applying for a product may vary from that mentioned above. Please visit www.bankbazaar.com for the latest rates/offers.
Category: Credit Score

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