If you’ve ever applied for a loan, credit card, or even a mobile plan, you’ve likely heard of the term credit score. But do you really understand what it means? Many people believe myths like checking your score lowers it or that income affects your score. In this article, we’ll bust the most common credit score myths, explain what is credit score, and guide you on where and how to check it.
What is Credit Score?
A credit score is a three-digit number that represents your creditworthiness. It is calculated based on your credit history—how you manage loans, credit cards, repayments, and other financial behaviors. In India, credit scores typically range from 300 to 900, with 750 and above considered good.
Lenders use this score to decide whether to give you a loan, at what interest rate, and how much risk you represent. Credit bureaus like CIBIL, Experian, Equifax, and CRIF High Mark generate the score.
Government Announcements on Credit Scores Awareness
In recent years, the Reserve Bank of India (RBI) has pushed for more transparency in the credit system. The RBI now mandates that credit bureaus provide one free credit report per year to every individual. This move was aimed at making credit health awareness more accessible and reducing misinformation about credit scores.
Additionally, the Ministry of Finance is working on increasing financial literacy through digital campaigns, especially targeting youth and first-time borrowers.
Top Apps to Check Your Credit Score
Here are some trustworthy apps and platforms where you can check your credit score for free:
- CIBIL (MyCIBIL) – Official app from TransUnion CIBIL.
- Experian Credit Report App – Offers free reports and improvement tips.
- Bajaj Finserv – Allows you to check your CIBIL score instantly.
- OneScore – A popular, ad-free credit scores tracker.
- Paytm – Offers free credit scores checks and credit card suggestions.
- BankBazaar – Free score and history analysis.
- Paisabazaar – Offers detailed credit reports from all bureaus.
Top 10 Credit Score Myths Busted (FAQs)
1. Does checking my credit score lower it?
Myth: Yes.
Fact: No. When you check your score, it’s called a “soft inquiry” and doesn’t affect your credit. Only lenders’ “hard inquiries” might impact it.
2. What is credit scores based on income?
Myth: Higher income means higher score.
Fact: Income isn’t a direct factor. What matters is how well you manage your credit.
3. Can I get a loan without a credit scores?
Yes, but it may be harder or costlier. Lenders may offer loans at higher interest rates or require collateral.
4. Will paying off debt erase my bad credit history?
Myth: Immediately yes.
Fact: Negative records stay on your report for several years even after repayment.
5. Is closing a credit card good for my score?
Myth: Yes.
Fact: No. It can hurt your score by reducing your credit utilization ratio and shortening your credit history.
6. Does a credit scores affect job applications?
Fact: In India, employers usually do not check your credit score, but in financial roles, they might look at your financial background.
7. What is credit scores used for besides loans?
Credit scores are used for credit card approvals, buy-now-pay-later schemes, home rentals, and sometimes even utility connections.
8. Do credit repair agencies really work?
Be cautious. Some are scams. You can often improve your score yourself by making timely payments and reducing debt.
9. Are all credit scores the same?
No. Different bureaus may show slightly different scores based on their calculation models.
10. Can I improve my credit scores in a few days?
No. Genuine score improvement takes consistent behavior over 3–6 months or more.
Conclusion
Understanding what is credit score and the myths surrounding it is the first step to improving your financial health. Don’t fall for common misconceptions like believing income impacts your score or that checking your score hurts it. With free tools and government-backed initiatives available, it’s easier than ever to stay informed and proactive.
Whether you’re planning to take a loan, get a new credit card, or just want to maintain a strong financial profile—knowing the truth behind credit scores myths puts you in control.
