This post focuses on myths about CIBIL itself and your credit report: what the bureau does, what the entries mean and who can change them. For wider myths about credit scores in general, see our top 15 credit score myths.
First, who does what
How your CIBIL score is made, and who decides your loan
The same flow applies to Experian, Equifax and CRIF High Mark, India’s other credit bureaus.
10 CIBIL myths, and the facts
Myth: CIBIL keeps a defaulter list
Fact: There is no blacklist. Your report shows your accounts and their history, good and bad, and each lender reads it its own way. More in the “CIBIL defaulter” myth.
Myth: CIBIL rejected my loan
Fact: Only the lender decides. Two lenders can look at the same report and reach different answers.
Myth: CIBIL can correct my report on its own
Fact: The bureau can only change data after the lender that reported it confirms the correction. That’s why disputes go via the bureau to the lender. See CIBIL dispute resolution.
Myth: Checking my own score lowers it
Fact: Your own check is a soft enquiry with no effect. Only lender enquiries when you apply count as hard enquiries.
Myth: No loans means an excellent score
Fact: With no credit history, there may be no score at all, or a “no history” result. Lenders can’t judge what they can’t see. Read loans without a CIBIL history.
Myth: Being a co-borrower or guarantor doesn’t affect me
Fact: A joint loan or guarantee appears on your report. If the main borrower pays late, your score can suffer too.
Myth: Settling a loan is as good as closing it
Fact: “Settled” means the lender accepted less than it was owed, and lenders read it as a negative for years. Paying in full closes the account cleanly.
Myth: My salary, savings and property raise my score
Fact: Income and assets aren’t part of the score. Lenders consider income separately when deciding how much to lend.
Myth: A low score stays low for ever
Fact: Recent behaviour carries more weight. Clear dues, keep card use low and pay on time, and the score recovers over months. See what can move your score fast.
Myth: A score below 750 means no loan
Fact: Many banks prefer 750 or more, but lenders’ criteria differ. Omozing considers salaried applicants from 600.
Report entries people misread
Some myths come from confusing words on the report itself. Here is what the common account statuses usually mean.
| What the report says | What it usually means | How lenders read it |
|---|---|---|
| Closed | Fully repaid and closed by the lender | Neutral to positive |
| Settled | Lender accepted less than the full amount | Negative for years |
| Written off | Lender stopped expecting repayment and booked a loss | Serious negative |
| Account sold | The original lender sold the loan to another entity, often an asset reconstruction company, usually after it went bad | Usually negative; check the history around it |
| Account purchased | The same loan as reported by the entity that bought it | Read together with the “sold” entry; the debt may still be owed |
| DPD numbers (e.g. 030, 090) | Days past due in that month | Higher numbers and recent months hurt most |
Wording varies slightly between bureaus. If an account shows as sold or purchased and you believe it was repaid, ask the lender for a no-dues certificate and raise a dispute. Our dispute how-to has templates.
Why these myths cost people money
Myths lead to expensive mistakes. People avoid checking their report and miss an error that is pulling their score down. They settle a loan thinking it’s a clean exit. They co-sign a relative’s loan without realising it shows on their own report. Or they pay an agent to “remove their name from CIBIL”, which no one can do for accurate information.
- Check your report from each bureau at least once a year; one full report per bureau per calendar year is free.
- Never pay anyone to delete accurate entries. Errors can be disputed for free.
- Before co-signing, assume the loan is yours for credit purposes.
- If you can, pay in full instead of settling.
Where Omozing fits
Because the lender, not the bureau, makes the decision, how a lender reads your report matters as much as your score. Omozing considers salaried applicants with a score from 600 and take-home pay of ₹40,000 a month or more, and a credit officer reads the full report rather than stopping at the number.
Score at 600 or above?
See how we assess salaried borrowers with fair or mid-range scores.
Frequently asked questions
Does CIBIL approve or reject loans?
No. CIBIL records data reported by lenders and calculates a score. The lender you apply to makes the decision using your report, income and its own policy.
Is there a CIBIL defaulter list?
No. There is no blacklist. Your report shows missed payments, settlements or write-offs, and each lender decides how to interpret them.
What does account sold mean in a CIBIL report?
It usually means the original lender sold the loan to another entity, often an asset reconstruction company, typically after it went unpaid. The buyer may then show the account as purchased. Check whether any amount is still due.
Does checking my CIBIL score reduce it?
No. Checking your own score is a soft enquiry and has no effect. Hard enquiries happen when a lender checks your report after you apply for credit.
Does my salary affect my CIBIL score?
No. Income is not part of the score. Lenders look at income separately when deciding whether you can afford a loan and how much to lend.
How long does a negative entry stay on my report?
Your report shows several years of repayment history, and serious remarks can stay visible for years. Their impact fades as you add a long run of on-time payments.
Omozing is the digital lending brand of Aparampaar Finance Private Limited, an RBI-registered non-deposit-taking NBFC. Loans are subject to credit assessment. See our regulatory disclosures and grievance redressal process.