20 Myths About CIBIL


CIBIL stands for Credit Information Bureau (India) Limited which is basically credit information company. CIBIL Collects and keeps up credit records of individuals and entities. Credit records mean your credit history or history of   your borrowing and repayments related to loans and credit cards. RBI has permitted and given the license to CIBIL for these activities.




There are numerous confusions and myths among the general public about CIBIL and most common myths and misguided judgments are as underneath –

1. CIBIL has declined my loan – CIBIL cannot decline your loan it just provides data about your credit reputation to the credit institution or bank.

2. CIBIL is a governmental or quasi-governmental entity  – CIBIL is governed by an ACT of Government and has RBI license yet it is not a governmental or quasi-governmental entity. Truth be told, CIBIL is a private operator.

3. CIBIL maintains the defaulters list – It is another exceptionally normal myth among the general public that CIBIL has  blacklisted me and CIBIL has put my name in the defaulter list. The truth of the matter is that CIBIL does not maintain any defaulter list.

4. Information provided by CIBIL is 100% accurate – Data like personal details,  contact details, employment details, account details, amount overdue and ownership can be wrong and erroneous in CIBIL reports. You can raise a dispute to resolve the discrepancies.

5. CIBIL can change, add, delete or correct my credit behavior or info –  CIBIL directly cannot change any info or data related to your credit history.  CIBIL can just include or update the changes if your credit institution authorizes and provide it to CIBIL.

6. Only CIBIL can give your Credit Report or Credit Score – Reserve bank has given license to Equifax, Experian, CRIF and CIBIL to maintain and provide your credit report. CIBIL is only one bureau among these four. Other can provide your credit report as well.

7.  My CIBIL score is poor so no one will provide me a loan – You can repair and enhance you CIBIL score and each credit institution has their own particular criteria to consider the same CIBIL score.

8. My CIBIL score is healthy and good so I can get a loan from any bank or NBFC at the lower interest rate –  Only on the basis of good CIBIL score, you won’t be eligible or qualified for a loan at the lower interest rate. The other criteria like your income and KYC also play a  noteworthy part in getting a loan apart from the CIBIL.

9. Not having my name or my credit track record in CIBIL is the best thing for getting a loan– This is another most common misconception among people. Having a solid and healthy credit track record in CIBIL provides the lenders more comfort than not having any credit history. When you apply for a big loan then your good credit history plays a major role in your loan sanction process. Normally credit institutions hesitate to provide a big loan to the first-time borrowers.

10. I cannot check my CIBIL score or Credit report – You can purchase your own CIBIL report anytime.

11. Everyone can check my CIBIL anytime – Either you or only registered lenders like NBFCs, Banks can access your CIBIL if you have applied to them for a loan or a credit card.

12. CIBIL score  increases if I file ITR – CBIL has nothing to do with your ITR and it is just identified with your credit conduct and record of loan repayment. Improve your credit behavior if you want to improve your credit score in CIBIL.

13. Not maintaining the minimum balance in a bank account or negative balance in the saving account can affect my CIBIL – The bank and credit institutions just report your credit behavior identified with your credit and your loan account, not each conduct identified with the bank account, saving account or current account.

14. Prepayment of a credit can adversely affect my CIBIL score –  It does not affect your CIBIL score in any capacity. Prepayment of a loan only shortens your credit history not your credit score.

15. Checking my own CIBIL can pull down my credit score – It does not affect your credit score when you check your own CIBIL but it can be affected when multiple credit institution checks your CIBIL.

16. My income is high so my CIBIL score would be high – CBIL just gathers your credit record, not your salary or income records. So CIBIL has nothing to do with your high or low income.

17. A default of utility or postpaid bill can ruin my CIBIL score – Utility companies do not report any of your transaction to CIBL so this does not impact your CIBIL in any way.

18. Using debit card can improve my credit rating in CIBIL – CIBIL is just identified with your credit behaviors subsequently utilizing a debit card is not related to CIBIL.

19. I am a co-borrower, guarantor or second applicant so my CIBIL won’t be affected – If the primary applicant or borrower has made any default then all applicant and borrowers will be impacted and the credit score of all applicant including guarantor will be affected adversely.

20. My name is in CIBIL so I won’t get a loan – Having the name in CIBIL is common and if you have taken any loan from any registered financial institution or any bank then CIBIL will have your name. If your repayment track record is good then having your name in CIBIL actually, can help you.

Now you need  not fear when you hear the name CIBIL. However, following healthy and good credit behaviors can always help you.

Why is CIBIL more popular than other credit bureaus??

Can your poor CIBIL score stop you getting a good job??

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