Our companion article on CIBIL score myths deals with myths about the bureau and the report, such as the “defaulter list” and who can correct your data. This one is about the other kind: beliefs about everyday money habits that quietly cost people points, or make them worry about things that don’t matter at all.
First, what your score actually sees
A credit score (300–900 at TransUnion CIBIL, Experian, Equifax and CRIF High Mark) is built only from what lenders report: your loans, your cards, how you repay them and how often you apply for new credit. Anything that isn’t credit mostly doesn’t reach it. Keep this picture in mind and most myths fall apart on their own.
What reaches your credit report
A simplified view. Lenders still look at income and bank statements when you apply; they just don’t feed into the bureau score itself.
Ten everyday myths, and the facts
Myth 1: Checking my score will lower it
Checking your own score or report is a soft enquiry. It has no effect on your score, however often you do it. What counts is a hard enquiry, which happens when a lender pulls your report because you applied for credit. Checking regularly is actually a good habit: it is how you catch errors early. See our free credit score guide.
Myth 2: A high salary means a high score
Income isn’t part of your bureau score. Someone earning ₹3 lakh a month who misses card payments can have a weaker score than someone earning ₹45,000 who pays every bill on time. Lenders do check income separately, to decide how much you can afford, but it won’t rescue a poor repayment record.
Myth 3: My debit card and UPI spending builds credit
Debit cards and UPI spend your own money, so no lender is involved and nothing is reported. You can run a perfect bank account for ten years and still have no score at all. To build a history you need some form of credit, used carefully.
Myth 4: Lots of savings and FDs raise my score
Savings show you are prudent, but the bureau doesn’t see them. They can help indirectly: an FD can secure a credit card or a loan, which then builds your history.
Myth 5: Paying the minimum due keeps me safe
Paying the minimum avoids a late mark, which matters. But the rest of the balance carries interest, and the balance itself stays high, so your utilisation (the share of your limit you use) stays high too. A card that sits near its limit month after month weighs on your score even with no missed payment. Read the perils of maxing out your credit card.
Myth 6: Never borrowing gives me a perfect score
No credit means no history, not a perfect score. Many people who have never borrowed find they have no score at all, which makes the first loan harder. Our guide to getting a loan without a credit history explains how lenders handle this.
Myth 7: Closing a paid-off card improves my score
Closing a card reduces your total available limit, so the same spending on your remaining cards becomes a higher share of your limit. If it is your oldest card, you may also shorten your credit history. Keep old, fee-free cards open and use them lightly.
Myth 8: A tiny overdue doesn’t matter
Lenders report days past due, not just the amount. A forgotten ₹600 card balance that runs 60 days late can show up much like a larger missed payment. Set up auto-pay for at least the minimum on every card, including the ones you rarely use.
Myth 9: Pay-later and small app loans don’t count
Many pay-later limits and instant app loans are credit given by a bank or NBFC, and they can appear on your report. Several open at once can make you look stretched, and a missed one counts like any other default. If you are juggling a few, SmartSwitch can combine them into one EMI.
Myth 10: Guaranteeing a friend’s loan is just a signature
If you co-sign or guarantee a loan, it can appear on your report, and if the borrower misses payments your record can suffer too. Only guarantee a loan you could repay yourself. Our article on how a guarantor helps a loan application explains the responsibilities on both sides.
Habits that genuinely help
Auto-pay everything
Set every EMI and at least every card’s minimum on auto-debit after salary day. Then pay the rest manually.
Pay before the statement date
Lower the balance before the statement is generated, so the reported balance stays under about 30% of the limit.
Space out applications
Apply only when you need credit, and compare offers without submitting many applications in the same few weeks.
Check your report yearly
Use your free annual report from each bureau. Dispute anything wrong through CIBIL dispute resolution.
Quick self-check
- I know the statement date and due date of every card I hold.
- No card is regularly above half its limit on the statement date.
- All EMIs are on auto-debit.
- I haven’t applied for more than one or two new loans or cards in the last six months.
- I know every loan where I am a co-applicant or guarantor.
- I have looked at my full credit report in the last 12 months.
If you tick all six, the myths above aren’t costing you anything. If you can’t, start with the ones you missed. For a step-by-step plan, read how to raise your credit score, account by account.
If your score isn’t where you want it
A score dented by old habits doesn’t have to stop you. Omozing, the lending brand of RBI-registered NBFC Aparampaar Finance, considers salaried applicants with a credit score from 600 and a take-home salary of ₹40,000 or more. A credit officer reads your full report, so recent good habits count.
Salaried with a score from 600?
See how we assess your full report and check whether you qualify for a personal loan.
Frequently asked questions
Does checking my CIBIL score reduce it?
No. Checking your own score is a soft enquiry and has no effect. Only hard enquiries, made when a lender checks your report because you applied for credit, are counted.
Does my salary affect my credit score?
No. Income is not part of the bureau score. Lenders check your salary separately to decide how much you can borrow, but the score itself reflects only how you have handled credit.
Can I build a credit score with a debit card?
No. Debit card and UPI payments use your own money, so nothing is reported to the credit bureaus. You need a credit product, such as a credit card or a small loan, repaid on time.
Is paying the minimum due on a credit card bad for my score?
Paying the minimum avoids a late payment mark, but your balance stays high and keeps attracting interest. High utilisation month after month can hold your score down, so pay as much as you can, ideally in full.
Should I close a credit card after paying it off?
Usually not, especially if it is your oldest card. Closing it reduces your total limit and can shorten your credit history. If it has an annual fee you can’t get waived, close a newer card instead.
Do pay-later services affect my credit score?
Many pay-later limits are credit given by a bank or NBFC and can be reported to the bureaus. Treat them like any other loan: repay on time and don’t open several at once.
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.