10 Surprising Facts about Your CIBIL Score

Your CIBIL score, also known as your credit score, is an important aspect of your financial life. It determines your eligibility for loans, credit cards, and other financial products. While you may have a general understanding of how your credit score works, there are many surprising facts about it that you may not be aware of. In this blog post, we’ll explore the top 10 surprising facts about your CIBIL score to help you better understand this crucial financial tool.

  1. It’s not just about loan repayments

While timely repayment of loans is a significant factor affecting your CIBIL score, it’s not the only one. Your score is calculated based on five factors: payment history (35%), credit utilization (30%), length of credit history (15%), type of credit (10%), and recent credit inquiries (10%). Thus, a diverse credit portfolio and a long credit history can also contribute to a high credit score.

  1. No credit history means a low score

If you have never taken a loan or used a credit card, you might think that your credit score would be neutral or high. However, this is not the case. With no credit history, lenders have no way of evaluating your creditworthiness, and this results in a low CIBIL score. Building credit history takes time, so start by using a credit card or taking out a small loan to establish a credit history.

  1. Checking your own score won’t hurt

Many people avoid checking their CIBIL score, fearing that it will negatively impact their score. The truth is, checking your own score is considered a “soft inquiry” and does not affect your credit score. It’s important to monitor your credit score regularly to ensure accuracy and address any discrepancies or issues that may arise.

  1. Closing old credit cards can hurt your score

Closing old or unused credit cards may seem like a good idea to declutter your finances. However, this could negatively impact your credit score. Closing an old account reduces your overall credit limit and increases your credit utilization ratio, which can lower your score. Instead, consider keeping old accounts open and using them occasionally to maintain a healthy credit history.

  1. A high income doesn’t guarantee a high score

It’s a common misconception that a high income directly correlates to a high credit score. While income can influence your creditworthiness, it is not a direct factor in determining your CIBIL score. Your credit score is determined by your credit history and financial behavior, regardless of your income level.

  1. A single late payment can have a significant impact

Just one late payment can cause a noticeable drop in your credit score, especially if you have a relatively short credit history. It’s crucial to stay on top of your loan repayments and credit card bills to maintain a healthy credit score. Setting up automatic payments or reminders can help you avoid missing due dates.

  1. A good CIBIL score can save you money

Lenders offer lower interest rates to borrowers with high credit scores because they’re considered less risky. By maintaining a high CIBIL score, you can save money on interest payments for loans and enjoy better terms on credit cards.

  1. Guarantor or co-signer’s behavior affects your score

If you’re a guarantor or co-signer on a loan, the primary borrower’s repayment behavior directly impacts your credit score. Should the primary borrower default or miss payments, your credit score will take a hit. Be cautious when agreeing to become a guarantor or co-signer and ensure that the primary borrower is reliable.

  1. CIBIL score is just one part of your credit profile (continued)

Lenders also consider other factors when evaluating your creditworthiness. These factors include your income, job stability, debt-to-income ratio, and the size of your down payment (for loans). Therefore, it’s essential to maintain a holistic approach to financial health by focusing on improving all aspects of your credit profile.

  1. CIBIL scores are updated regularly

Your CIBIL score is not static and is updated regularly based on your credit activity. This means that even if you have a low score today, you can work on improving it over time. By consistently making on-time payments, keeping your credit utilization low, and maintaining a diverse credit portfolio, you can raise your credit score.


Understanding the intricacies of your CIBIL score is crucial for maintaining good financial health and increasing your chances of securing favorable credit terms. By being aware of these surprising facts, you can take the necessary steps to improve and maintain your credit score, ensuring a brighter financial future. So, start paying close attention to your CIBIL score and make informed financial decisions to build a strong credit profile.

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