On the basis of credit score, banks decide whether you will get a personal loan or credit card or not. Cibil score or credit score ranges between 300 to 900, but a CIBIL score of 750 or above is considered good. However, there are often many misunderstandings about it, due to which not only common people but also bankers and professionals get confused. So let us understand in simple language today which 5 myths are spread about it.

Many people believe that checking your credit score repeatedly reduces the score. But this is not so. When you see your score yourself, it is called Soft Inquiry and it does not affect the score. Rather, by checking regularly, if there is any mistake, you can correct it in time and keep the score healthy.

It is wrong to think that the one who has a higher income will also have a higher credit score. The score is based only on your credit behavior - such as repaying the loan on time, not applying for multiple loans or credit cards at once, and doing loan management properly. Income has no role in this.

If you close a credit card, it does not mean that your old loan history will be erased. The record of accounts that are settled or closed remains in your credit report for many years. If you have ever delayed a loan or credit card bill, that too will be visible in the report for many years.

Some people think that if they have never taken a loan, then their score will be perfect. But the truth is that if you have never used credit, then you will not have any score. And in such a situation, it can be difficult to take a loan, because the bank will not know your payment record.

This is also a misconception. There are many licensed credit bureaus in India - such as CIBIL, Experian, CRIF High Mark and Equifax. Each bureau uses its own algorithm, so there may be a slight difference in the score in different bureaus.

If you want to reduce the loss to CIBIL due to the loan, then you have to keep some things in mind. This will gradually improve your CIBIL. Let's know 7 such things.

Repay the outstanding amount as soon as possible. This can improve your future image.

After payment, definitely take a 'No Dues Certificate' from the bank or financial institution.

Check your report from time to time and get it corrected if you find any mistake.

If there is any mistake, immediately file a complaint with the credit bureau and submit the necessary documents.

Applying more often can further lower the credit score.

Take a secured credit card or a small consumer loan and repay it on time so that a good record is created.

Keep a good balance of both secured and unsecured borrowings.