We need to have a good CIBIL score because whenever we apply for a loan, our CIBIL score is checked first. We will get a loan only if our CIBIL score is good, otherwise the loan file is also rejected. You people are very aware of the rules related to CIBIL score.

However, there is still a lot of confusion in the minds of people about CIBIL score and there are many things that people have believed to be true. So let's know what are those things related to CIBIL score which are not true, but people consider them to be true.

A loan will not be available if you have a low CIBIL score (low cibil score)

Often people believe that if the credit score is low, the bank or the loan-giving institution refuses to give it, that is, if the score is low, the loan will not be available. But this is not completely true. Many banks give loans even to borrowers with low CIBIL scores. However, they charge higher interest rates for this. At the same time, some banks give loans only to those with good scores. Therefore, instead of worrying about low CIBIL scores, you should look for those banks that give loans even on low scores.

This is the effect of check bouncing on the CIBIL score

There can be many reasons for check bouncing. Sometimes checks bounce due to a person's mistake, and many times cases of check bouncing due to bank's mistake or technical reasons also come to the fore. Cibil Score has nothing to do with this and neither does it affect your score. CIBIL score becomes worse due to not paying EMI or missing out on paying the loan installment.

Low use of credit cards means good CIBIL score (credit card use)

If you think that despite having a credit card, it should not be used, then let us tell you that it also has no relation to CIBIL score. On the contrary, if no amount has been withdrawn from the credit card, then there will be no credit history. This can make it difficult for the bank to understand whether you are a good creditor or not and on this basis, the loan application can be rejected.

Cibil saves the names of defaulters

CIBIL is a kind of document, which contains all the details related to your transactions. So if you are thinking that if you do not pay any loan installment, your name will be in the list of defaulters, then it is not so. All the data is collected in it. Even if a person pays the installments regularly, his name will be with CIBIL.

Checking CIBIL repeatedly spoils the score.

Many people feel that checking CIBIL score repeatedly can spoil the score, but the CIBIL report does not reflect the CIBIL inquiries made by the applicant. Due to this, it is not possible to know how many times a person has requested for CIBIL report.

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