10 Credit Score Myths That You Shouldn’t Fall For

Considering the universal usage of credit cards, the number of myths about credit scores circulating is surprising. Your credit score summarises your overall credit report that lenders and creditors use to estimate the possibility that you will repay the borrowed amount. It is an indicator of your credit ability. Many misconceptions about credit scores circulate that prevent you from checking your credit score frequently. You can perform the free CIBIL score check with the help of the CIBIL score app. The guide will discuss some misconceptions about credit scores.

10 Credit Score Misconceptions That You Shouldn’t Believe

The ten  credit score myths that you shouldn’t believe are as follows:

  1. Income Affects Credit Score

Your monthly salary estimates your eligibility criteria and doesn’t affect your credit score. Lenders use the salary and income details to know whether you can repay the borrowed amount. While your monthly income doesn’t affect your credit score, other factors, such as due debt, credit history, etc., can affect your credit score.

  1. Credit Card Balance Aids in Boosting Credit Scores

Your credit card balance doesn’t improve your credit score. It hurts your credit score and might be expensive. Credit card balance aids in boosting credit scores, a misconception. If you can’t pay bills on time, using a credit card balance to pay interest wastes money. 

  1. Good Credit Scores Hints Wealth

Good credit scores don’t imply wealth. Even if you have a high salary, it will not boost your credit score. The statement is far from the truth and is a myth.

  1. A Person Can Have One Credit Score

A popular myth is that one person can have only one credit score. You can have multiple credit scores because several credit scoring modules are available in the market. Your credit score might differ depending on which credit bureau issues the score. Lenders use multiple credit scores to determine your credit behavior.

  1. You and Lenders Will View the Same Credit Score

Multiple credit scores available are education, meaning you and the lender might need to see the same ones. Education credit scores tell that to give you a general notion about your credit health. It is wrong to speculate that a lender will grant the credit limit depending on what you see,

  1. Debit Cards Aids to Boost Credit Score

If you think that applying for a debit card will aid in boosting your credit score, it is nothing but a myth. Debit cards do not increase your credit score. It won’t have any impact on your credit score. Credit cards and loans are financial products that help in raising credit scores.

  1. Equated Monthly Instalments Moratorium Affects Credit Scores

It is a new credit score misconception. Moratoriums applicable on term loans can help to deal with a liquidity crisis in situations like the pandemic. If you used the facility, knowing the equated monthly installment moratoriums will not affect the credit score is significant. 

  1. Debt Repayment Will Not Affect Your Credit Score

A credit report considers your credit behavior. Every loan you held previously or closed during the monitoring time will mirror your credit report and affect your credit score. If you delay in repayment, your credit score will be impacted. Debt repayment will not affect your credit score is a myth.

  1. Several Loans Can Result in Low Credit Scores

Several loan applications imply that you are credit hungry, which can adversely impact your credit score. If you have multiple loans and repay them on time, it can raise your credit score. If you have fewer loans but do not repay them on time, it can adversely affect your credit score.

  1.  Bad Credit Scores Do Not Change

Credit score calculations depend on your earlier credit activities. It doesn’t mean that if your credit score is low, you can not change it. It is a misconception. You can work hard to build a good credit history which will fetch you a good credit score. A bad credit score will not be the same for a long time. You can build good financial habits and practices.


Some of you may believe in misconceptions about credit scores. Before applying for loans or new credit cards, clarifying the misconceptions about credit scores is essential for better use and a way towards credit. You can work towards mindful credit usage to construct a good credit history and retain a good score rather than believing in misconceptions about credit scores. You can frequently perform the free CIBIL score check procedure to understand credit scores better. You can use your credit consciously. If your approach is vigilant, it would be better. You can download the CIBIL score app to check your credit score and report.

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