9 Credit Score Myths That Most Borrowers Believe Even in 2022

Credit Score Myths

Credit scores are used to determine whether or not a borrower poses a risk to lenders. A low score may affect your trustworthiness in the eyes of a lender, whereas a high score makes it much simpler to secure loans. Credit scores and credit reports are essential if you ever want to apply for more credit in the future, but they have no bearing on your reliability as an individual. There are many myths floating around in the market that states that your marital status, age, race, nationality, income, or line of work affects your credit score. These aspects have no bearing on your credit score. Contrary to popular perception, taking part in credit counselling programmes does not negatively impact your credit report or score. Let’s now examine the aspects in detail that doesn’t affect your credit score.

Credit Scores Gradually Change: Your financial decisions affect your credit score. Credit rating agencies in India take into account your financial decisions and the financial discipline you make now and in the future, whether they are good or bad and accordingly calculate your credit score. Periodically, credit reports and scores are updated to reflect your most recent financial and credit activities. Your credit score can be severely impacted by behaviours like skipping payments, making late payments, and defaulting on loans. On the other side, if you use your money wisely, you can improve your rating quickly. By showing excellent and responsible credit responsibilities over time rather than avoiding taking credit altogether, a low score can be raised.

Marriage Combines Credit Score: If you’ve decided to get married and believe that your spouse’s good credit will help you have better credit as well, think again! Neither the credit bureau of India nor Credit rating agencies in India has ever said that. You and your partner are still two distinct individuals with separate credit histories in the eyes of credit score companies. The odds of your credit score being impacted are slim unless you choose joint loan accounts or make financial decisions together. Even if one of you has a low credit score, it could be a problem in situations like getting a loan where both partners’ scores are looked at.

It is the debit card that builds your credit score: No matter how prudently you manage your debit account, it will have no effect at all on your credit score. When using a debit card, you don’t borrow money from a financial entity like a bank or lender; rather, you use it from your own bank account. Furthermore, the bank does not submit the transactions performed with a debit card to the credit bureau of India or Credit rating agencies in India. As a result, using your debit card to pay for your phone or tuition expenses won’t help you establish or raise your credit score.

Debt-Free Status improves Credit Score: Even while you don’t have to incur debt to improve your credit score, having no debt at all on your credit record will also be detrimental. Moneylenders look at your credit history to judge how well you handle your money. Therefore, a score of 0 wouldn’t be helpful. Use at least one credit option responsibly and make on-time payments to build good credit without taking into debt. To raise your credit score, give your account time to develop credibility.

Bad credit score equals rejection: If you have a bad credit score, it doesn’t mean all your future credit avenues will be closed. The credit bureau of India calculates your score based on the pattern of your repayment and credit history and helps lenders evaluate your payback credibility. A credit card or loan with a low score is still possible, but it might have extra limitations. Though getting approval will be tougher, you can get through by paying a higher rate of interest.

Checking your score affects credit: Many people think that continually monitoring their scores will result in a decrease in their scores. This is untrue, though, as checking your score is not a difficult question. Thus, it has no bearing on your final score. In fact, regularly monitoring your score enables you to spot any inaccurate data it may have. Credit rating agencies in India must be notified of any inaccurate data and transactions so that they can be corrected.

A better job means a better score: Although a higher income may suggest a greater capacity to pay off debts, your credit score is unrelated to your income or job description. When making loans, lenders do take your income into account, but your credit score, which is mostly based on your credit history calculated by the credit bureau of India, is unaffected by your income.

Paying debt instantly improves your credit score: Your prior obligations should show up on your credit history if you have been paying on time, as this will assist the lender in building trust in you. On the other side, if you’ve consistently missed payments, it could be difficult to secure loans. As was previously indicated, if your credit history has been managed wisely, it can be to your advantage. Therefore, even if you have paid off a large loan, you still need to maintain good credit habits to raise your credit score over time.

My credit score is visible to my employer

People frequently believe that prospective employers can view their credit score when they apply for a new job. Even though employers have access to your credit report, the report does not contain your real credit score. It’s not the same kind of credit report that your lenders can see. Your debt and payment history are what employers do see when they perform a credit check so they can look for any indications of financial difficulty.


Your credit score is important when applying for the best credit cards or even when applying for a home loan. Just make sure when you are improving your credit score,  you do not become a victim of misconceptions regarding what does affect your credit score.

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About the Author: John Carter

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