Your credit score is a numerical representation of your creditworthiness as a borrower. Credit issuers assess the credit scores of borrowers to determine their eligibility for credit. An individual’s credit score is made of several credit score factors, such as repayment history, existing debt, income, and credit utilisation ratio. While filling out loan applications, lenders ask applicants to provide details, such as marital status, age, and employment history.
Applicants may think that everything mentioned in a loan application makes up CIBIL score factors. However, an individual’s CIBIL score is influenced by only a few different factors. This article discusses the factors that do not affect the CIBIL score.
Factors that Do Not Affect Your CIBIL Score
A good CIBIL score, i.e. anything above 750, helps borrowers get approved for a loan quickly and avail of beneficial loan terms and conditions, such as low-interest rates, long loan tenor, and higher loan sanction than one is eligible for. Borrowers understand this and therefore, spend a considerable time working on CIBIL score factors that affect their credit rating. However, borrowers often get confused about factors that affect their CIBIL score. Given below are some of the factors that do not affect your CIBIL score.
Bounced Cheques
Credit borrowers think that bounced cheques affect one’s credit scores negatively. However, this is not the case. When a credit information bureau calculates your credit rating, it collects all information about you, including the number of bounced cheques you have had. However, until and unless, the bounced cheque was supposed to be one of your EMIs, which you, therefore, missed paying, your credit score won’t be affected. A bounced cheque will negatively affect your credit score only if you used to clear an EMI. In any other case, the credit information bureau will not concern itself with why the cheque bounced and therefore, your credit score or credit report won’t be affected.
Account Balance
This is a very common myth or misconception that one’s account statement makes an important CIBIL score factor. The truth is it does not matter what’s in your account, how much you have saved, how many policies you have bought and how many premiums you are paying. Your CIBIL score is only affected by details related to your loan account, such as whether you pay your EMIs on time, your credit utilisation ratio, how many credit cards have you applied for, and how many times you have been rejected.
Also Read: Impact of a Co-Applicant CIBIL Score on Your Home Loan Application
Soft Enquiries
When a borrower applies for a loan or a credit card, lenders check their credit rating. Every time a lender checks your credit score, the enquiry gets registered as a hard enquiry. Too many hard enquiries hamper a borrower’s credit score because it shows them to be highly credit-hungry. On the other hand, when a borrower checks their credit rating, it is known as a soft enquiry. Borrowers presume that both hard enquiries and soft enquiries negatively affect one’s CIBIL score. However, this is not the case. Soft enquiries have no bearing on a person’s credit score. So, you can check your credit score as many times as you want and your credit rating won’t be affected.
Usage Of Debit Card
How you use your credit card affects your credit score. However, how you use your debit cards has no impact on your credit rating. Borrowers must try and keep their credit utilisation ratio (i.e. the ratio of the credit used by them to the total credit available to them) under 30% if they want their credit report to reflect a good rating. On the other hand, how you use your credit card, the number of transactions you perform with it each month, the minimum balance you maintain on it, etc., does not affect your credit report.
Changes in Income
Your income or any changes in it do not affect your credit score. However, without a stable monthly income, their ability to spend funds changes. Sometimes, being without a job for too long can lead to missed EMI payments and credit card bills and can impact a borrower’s CIBIL score negatively.
Demographics
Lastly, many people also assume that their age, gender, marital status, and education level also have an impact on their credit rating. This is not the case. Your lender collects all this information about you since you are one of their clients and though all of this information is passed to credit information bureaus, it only helps them identify you and your borrower profile. These demographics do not impact your credit rating.
Final Words
Your credit score is important. Therefore, you must develop an understanding of the factors that affect it and factors that don’t. We have tried to be detailed in this article. Let us also answer some of the other questions that borrowers have about credit scores.
Also Read: 6 Ways How Outstanding Balance Affects Credit Score
DISCLAIMER:
While care is taken to update the information, products, and services included in or available on our website and related platforms/websites, there may be inadvertent errors or delays in updating the information. The material contained in this website and on associated web pages, is for reference and general information purposes, and the details mentioned in the respective product/service document shall prevail in case of any inconsistency. Users should seek professional advice before acting on the basis of the information contained herein. Please take an informed decision with respect to any product or service after going through the relevant product/service document and applicable terms and conditions. Neither Bajaj Housing Finance Limited nor any of its agents/associates/affiliates shall be liable for any act or omission of the Users relying on the information contained on this website and on associated web pages. In case any inconsistencies are observed, please click on contact information.
Trending Articles

home+loan Home Loan
[N][T][T][N][T]
How to Pay House Tax Online in Gorakhpur via Nagar Nigam Portal2025-03-28 | 4 min

cibil Cibil
[N][T][T][N][T]
What Is Credit Utilization Ratio and How Can You Improve It?2024-03-22 | 5 min

cibil Cibil
[N][T][T][N][T]
Pay Minimum Amount Due on Your Credit Cards Will Impact Your Credit Score2024-03-11 | 5 min

cibil Cibil
[N][T][T][N][T]
How can I Remove Loan Inquiry from CIBIL Credit Report2024-01-22 | 5 min

home+loan Home Loan
[N][T][T][N][T]
Exploring Square Feet to Centimeter Conversion for Interior Design and Construction2025-03-27 | 2 min

cibil Cibil
[N][T][T][N][T]
Does CIBIL Score Affect Loan Against Property Eligibility?2023-02-15 | 7 min

cibil Cibil
[N][T][T][N][T]
What Does Your Credit Score Tell About You?2024-06-11 | 5 min

cibil Cibil
[N][T][T][N][T]
Importance of CIBIL Score & Tips To Improve It2023-02-21 | 5 min

cibil Cibil
[N][T][T][N][T]
A Helpful Guide to Understanding Your Credit Report2024-01-26 | 5 min

cibil Cibil
[N][T][T][N][T]
Different Types of Credit Report Errors and How to Fix Them_WC2023-07-11 | 4 min

cibil Cibil
[N][T][T][N][T]
How Many Credit Inquiries are Too Much in a Year2023-09-21 | 2 min

cibil Cibil
[N][T][T][N][T]
Five Reasons Why a Bad Credit Score Could Lead to Loan Rejection2024-01-22 | 5 min

tax Tax
[N][T][T][N][T]
Difference Between Old vs. New Tax Regime2024-08-22 | 5 min

cibil Cibil
[N][T][T][N][T]
How Does Being A Loan Guarantor Affect Your Credit Score?2024-03-13 | 4 min

cibil Cibil
[N][T][T][N][T]
How a Good CIBIL Score Can Help You Celebrate the Festive Season Better2024-03-19 | 5 min

cibil Cibil
[N][T][T][N][T]
Here’s How a Short-term Loan Can Help You Improve Your CIBIL Score2024-03-25 | 5 min

loan+against+property Loan Against Property
[N][T][T][N][T]
Loan Against Agricultural Land: Unlock the Value of Your Property2025-03-07 | 6 min

home+loan Home Loan
[N][T][T][N][T]
Why is the Interest Component Higher in the Initial EMIs of a Home Loan2025-03-07 | 6 min

tax Tax
[N][T][T][N][T]
5 Tax Savings and Other Advantages You Can Get When You Apply for Home Loans2024-02-14 | 6 min

tax Tax
[N][T][T][N][T]
Income Tax Structure in New Regime: New Tax Exemption Limit 20252024-05-08 | 4 min

tax Tax
[N][T][T][N][T]
10 Useful Income Tax Deductions for FY 2022-232024-02-21 | 6 min

home+loan Home Loan
[N][T][T][N][T]
Complete Guide to Securing a Attractive Interest on Home Loans2024-01-23 | 3 min

home+loan Home Loan
[N][T][T][N][T]
What Affects the Interest Rate on Your Home Loan2024-03-13 | 5 min

home+loan Home Loan
[N][T][T][N][T]
Differences Between Fixed and Floating Interest Rates2024-05-15 | 2 min

[N][T][T][N][T]
Home Loan Overdraft Facility: Features and Benefits2025-03-19 | 3 min

[N][T][T][N][T]
Checklist of Documents Required for Home Loan2024-02-07 | 5 min

home+loan Home Loan
[N][T][T][N][T]
What are AMC Charges?2025-03-21 | 2 min

home+loan Home Loan
[N][T][T][N][T]
How to Change Your Home Loan E-Mandate on the BHFL Customer Portal2025-03-21 | 3 min

home+loan Home Loan
[N][T][T][N][T]
BBMP: Full Form, History, and Role in Bangalore’s Governance2025-03-20 | 2 min

[N][T][T][N][T]
Mutation of Property: Meaning, Process, and Importance2025-03-20 | 5 min

home+loan Home Loan
[N][T][T][N][T]
Floor Space Index (FSI): Meaning, Calculation, and its Importance in Real Estate2025-03-20 | 2 min

cibil Cibil
[N][T][T][N][T]
How to Increase Your CIBIL Score Above 800: 7 Proven Methods2023-01-24 | 4 min

home+loan Home Loan
[N][T][T][N][T]
Ways to Check RERA Registration Status of Real Estate Projects2025-03-20 | 2 min

home+loan Home Loan
[N][T][T][N][T]
Meebhoomi: A Comprehensive Guide to Andhra Pradesh Land Records2025-03-20 | 3 min

home+loan Home Loan
[N][T][T][N][T]
What is Margin Money in Home Loans? Everything You Need to Know2025-03-20 | 3 min

home+loan Home Loan
[N][T][T][N][T]
IGR Odisha: A Guide to Online Property Services and Registration2025-03-20 | 3 min

[N][T][T][N][T]
Relinquishment Deed: Meaning, Format, and Documents Required2025-03-19 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Essential Tips for First-Time Homebuyers in India2025-03-14 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Buying a Home: Understanding the 'No EMI till Possession' Scheme2025-03-19 | 2 min

home+loan Home Loan
[N][T][T][N][T]
How Can NRIs Avail of Home Loans in India2025-03-17 | 2 min

home+loan Home Loan
[N][T][T][N][T]
Everything You Need to Know About a Co-Applicant in a Home Loan and Tax Benefits2025-03-14 | 2 min

home+loan Home Loan
[N][T][T][N][T]
What is the Ideal Age to Buy a House?2025-03-19 | 2 min

home+loan Home Loan
[N][T][T][N][T]
Home Loan Documents Required for Salaried Persons: A Complete Guide2025-03-19 | 3 min

home+loan Home Loan
[N][T][T][N][T]
How Your Bank Account Statement Affects Your Home Loan Eligibility2025-03-19 | 4 min

home+loan Home Loan
[N][T][T][N][T]
Home Loan for Rs.70,000 Salary: How Much Can You Borrow?2025-03-18 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Home Loans for Salaried Employees: Eligibility, Documents, and Application Process2025-03-18 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Home Loan for Self-Employed: Three Steps to Improve Your Approval Chances2025-03-12 | 5 min

[N][T][T][N][T]
NRI vs. Indian Resident Home Loans2025-03-13 | 2 min

home+loan Home Loan
[N][T][T][N][T]
Home Construction Loan Application Guide2025-03-18 | 3 min

home+loan Home Loan
[N][T][T][N][T]
How to Apply for a Home Loan with a Low Salary2025-03-18 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Understanding Property Valuation for Home Loans in India2025-03-13 | 2 min

home+loan Home Loan
[N][T][T][N][T]
How to Check Your CIBIL Score Online for Free and Improve Your CIBIL Score2025-03-17 | 5 min

[N][T][T][N][T]
Top Cities in India to Buy a Home2025-03-14 | 3 min

[N][T][T][N][T]
What are Tranche Disbursement and Tranche EMI in Home Loans?2025-03-14 | 5 min

home+loan Home Loan
[N][T][T][N][T]
Himbhoomi: A Comprehensive Guide to HP Land Records2025-03-13 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Understanding Home Loan Settlement: What You Need to Know2025-03-13 | 2 min

loan+against+property Loan Against Property
[N][T][T][N][T]
Understanding GWMC Property Tax: Payment Methods, Calculation, and Benefits2025-03-13 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Guide to Form 26QB: Download, Fill, and File TDS on Property Sale2025-03-13 | 3 min

[N][T][T][N][T]
Home Loan for Pensioners: Eligibility and Benefits2025-03-11 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Franking vs. Stamping: Meaning, Differences, and Benefits2025-03-12 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Understanding the Roles of Co-borrower, Co-signer, and Co-owner in Home Loans2025-03-11 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Understanding ECS in Banking: Full Form, Benefits, and Working Process2025-03-11 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Top 5 Home Loan Benefits for First-time Woman Buyers2024-05-14 | 5 min

[N][T][T][N][T]
AnyROR Gujarat and the e-Dhara Land Record Systems2025-02-26 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Commencement Certificate: Meaning, Role, Requirement and Importance2025-03-06 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Understanding Conveyance Deed: Meaning, Types, Purpose, and Key Differences2025-03-06 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Simplified Conversion: From Square Inches to Square Feet2025-03-06 | 3 min

home+loan Home Loan
[N][T][T][N][T]
How to Calculate Your Home Loan Eligibility2025-03-05 | 3 min

home+loan Home Loan
[N][T][T][N][T]
House Rent Allowance Under Section 10(13A) of the Income Tax Act2025-03-05 | 3 min

loan+against+property Loan Against Property
[N][T][T][N][T]
How to Apply for a Mortgage Loan?2025-03-05 | 3 min

home+loan Home Loan
[N][T][T][N][T]
How to Top Up your Home Loan2025-03-04 | 3 min

home+loan Home Loan
[N][T][T][N][T]
BanglarBhumi West Bengal Land Records2025-03-04 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Know About CTS Number When Buying a Property in Mumbai2025-03-04 | 5 min

home+loan Home Loan
[N][T][T][N][T]
Home Loan for Self-Employed Individuals2025-03-03 | 2 min

home+loan Home Loan
[N][T][T][N][T]
Tips to Secure Quick Home Loan Approval2025-03-03 | 2 min

home+loan Home Loan
[N][T][T][N][T]
How to Pick the Best Home Loan Tenor that Suits Your Budget2023-06-29 | 5 min

home+loan Home Loan
[N][T][T][N][T]
Monthly Reducing Balance Method for Home Loan Interest2025-02-25 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Understanding RERA in Real Estate: Meaning, Full Form, and Benefits2025-02-16 | 2 min

home+loan Home Loan
[N][T][T][N][T]
Understanding Token Money: Its Importance and Key Considerations2025-01-16 | 2 min

home+loan Home Loan
[N][T][T][N][T]
A Detailed Overview of ‘A Khata’, ‘B Khata’ Certificates: Meaning, Differences, & Conversion Process2025-02-17 | 2 min

home+loan Home Loan
[N][T][T][N][T]
How to Check Land Records Online Using MP Bhulekh Portal2025-02-17 | 2 min

home+loan Home Loan
[N][T][T][N][T]
Understanding Mortgage Loan Eligibility Criteria2025-02-19 | 2 min

home+loan Home Loan
[N][T][T][N][T]
Understanding Home Loan Processing Fees2025-02-24 | 2 min

home+loan Home Loan
[N][T][T][N][T]
List of Documents Required to Purchase Under Construction Property2025-02-24 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Understanding EMI: Full Form and Calculation Methods2025-02-24 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Why Notary Fees Vary: Key Factors Explained2025-01-31 | 2 min

home+loan Home Loan
[N][T][T][N][T]
Pre-EMI or Full EMI: Understanding Home Loan Repayment Options2025-01-16 |

home+loan Home Loan
[N][T][T][N][T]
Stamp Duty in Bihar: Key Documents and Fees Simplified2025-01-16 | 2 min

home+loan Home Loan
[N][T][T][N][T]
Khasra Number Explained: How to Find It2025-01-03 | 2 min

home+loan Home Loan
[N][T][T][N][T]
Completion Certificate: Why It Matters for Property Buyers2025-01-17 | 2 min

home+loan Home Loan
[N][T][T][N][T]
What is LOD in Home Loans? Meaning, Importance, and Benefits2025-01-10 | 2 min

home+loan Home Loan
[N][T][T][N][T]
What is MODT in Home Loans & Importance2025-01-27 | 5 min

home+loan Home Loan
[N][T][T][N][T]
Understanding APF Number and Its Role in Home Loan Applications2025-01-07 | 2 min

home+loan Home Loan
[N][T][T][N][T]
What is a Non-Encumbrance Certificate (NEC): Its Meaning and Importance2025-01-27 | 2 min

home+loan Home Loan
[N][T][T][N][T]
Understanding Bigha in India: Convert 1 Bigha to Square Feet, Acres, and Hectares2025-01-31 | 2 min

home+loan Home Loan
[N][T][T][N][T]
A Guide to Applying for DTCP Approval for Patta Land Online2025-01-13 | 6 min

home+loan Home Loan
[N][T][T][N][T]
Cooperative Housing Societies: Objectives, Types, and Advantages2025-01-13 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Eligibility Guide for PMAY Urban 2.0: Credit Linked Subsidy Scheme (CLSS) Explained2025-01-13 | 2 min

home+loan Home Loan
[N][T][T][N][T]
Gift Deeds: A Comprehensive Guide to Registration and Documentation2025-01-29 | 2 min

home+loan Home Loan
[N][T][T][N][T]
How to Convert Hectare to Bigha?2025-01-29 | 2 min

home+loan Home Loan
[N][T][T][N][T]
Key Comparison Between PMAY Gramin and PMAY Urban 2.02025-01-20 | 4 min

home+loan Home Loan
[N][T][T][N][T]
PMAY Urban 2.0: Guidelines for Affordable Housing in India2025-01-29 | 2 min

home+loan Home Loan
[N][T][T][N][T]
PMAY Urban Mobile Application: Everything You Need to Know2025-01-20 | 2 min

home+loan Home Loan
[N][T][T][N][T]
Transferable Development Rights (TDR): Understanding the Concept2025-02-12 | 2 min

home+loan Home Loan
[N][T][T][N][T]
PMAY Urban 2.0: Interest Subsidy Scheme for Affordable Housing2025-02-12 | 2 min

home+loan Home Loan
[N][T][T][N][T]
Can I Take a Home Loan and a Personal Loan Together?2024-01-17 | 4 min

home+loan Home Loan
[N][T][T]Stamp[S]Paper:[S]Use[S]and[S]Validity[N][T]
Stamp Paper: Use and Validity2025-01-30 | 2 min

home+loan Home Loan
[N][T][T][N][T]
Inches to Centimetre Conversion: Key Insights for Home Construction2025-01-22 | 2 min

home+loan Home Loan
[N][T][T][N][T]
Home Loans and CIBIL Scores: The Key to Approval2025-01-03 | 2 min

home+loan Home Loan
[N][T][T][N][T]
DLC Rate in Home Loans: Everything You Should Know2025-01-17 | 2 min

home+loan Home Loan
[N][T][T][N][T]
How to Check Your Bajaj Housing Finance Home Loan Status2023-12-13 | 4 Min

[N][T][T][N][T]
Everything You Need to Know About Home Loan Part-Prepayment2024-12-18 | 5 min

loan+against+property Loan Against Property
[N][T][T][N][T]
A Guide to Calculate Loan Against Property EMI2025-01-08 | 2 min

[N][T][T][N][T]
Loan Against a Shop- Commercial Property Loans2024-12-18 | 2 min

loan+against+property Loan Against Property
[N][T][T][N][T]
Understanding the Types of Collateral Properties