• Nearly 45% of Indians have never checked their credit score, and over half believe in outdated myths.
• Checking your credit score is a soft inquiry — it does not lower your score.
• Having no loans doesn’t mean you have a good score — no credit equals no history.
• Paying only the minimum due can increase debt and hurt your CIBIL score.
• A CIBIL score of 750+ can help you secure lower loan rates and faster approvals.
• Regular score checks help catch reporting errors and frauds early.
• Defence families benefit from credit awareness when planning housing or vehicle loans.

Learn simple habits to improve and maintain your CIBIL score.

In the Defence community, financial responsibility and trust are core values. But when it comes to credit scores, myths often outweigh facts. Misunderstanding how your score works can affect your ability to get loans, credit cards, or better interest rates.

According to a recent study, nearly 45% of Indians have never checked their credit score, and over half still believe common myths about it. Among them, one of the most popular misconceptions is that “checking your score will reduce it.”

Awareness is key — especially for Defence families who manage relocations, loans, and long-term financial goals. Let’s bust some of the biggest myths about credit scores with facts and real data.

Read More: Decode Credit Score for Beginners
 

Myth 1: Checking my credit score reduces it

Fact: Checking your own credit score is a soft inquiry and does not reduce it.
Self-checks are completely safe and recommended every few months to spot any changes early (source).
Yet, a survey found that almost 50% of Indians still believe this — one of the most persistent myths even in 2025.

Check your score securely here: udChalo Credit Score

Myth 2: Having no loan or credit card means I have a good score

Fact: No credit history means no credit score, not a good one.
Your CIBIL score is calculated based on your credit usage, repayments, and consistency. To build a score, you need at least one credit product — like a secured card or small personal loan — and timely repayments.

Myth 3: My salary or rank affects my CIBIL score

Fact: Income, rank, or profession has no impact on your credit score.
Your score is based on how you manage borrowed money, not how much you earn. Whether you’re a Captain, Subedar, or civilian family member, timely repayment is what matters most.

Myth 4: Paying only the minimum amount due is enough

Fact: Paying only the minimum due keeps debt revolving and increases interest costs.
This behaviour leads to higher credit utilisation and a gradual drop in score over time (source). It’s always best to pay your full outstanding balance before the due date.

Myth 5: Closing old credit accounts improves your score

Fact: Closing older accounts shortens your credit history and can hurt your score.
Credit age — how long you’ve maintained credit lines — is an important factor in CIBIL calculations. Keep your oldest credit card active even if you rarely use it.

Myth 6: Once my score drops, it cannot be fixed

Fact: Your score can always improve with consistent repayment discipline.
Users who maintain steady repayment behaviour for a year often see an average improvement of 40–50 points in their CIBIL score (source).

Myth 7: Multiple credit applications won’t affect me

Fact: Each new loan or credit card application creates a hard inquiry, which slightly lowers your score. Too many applications within a short period can signal financial stress to lenders.

• The average credit score in India is around 720–729 (source).
• Users who check their score regularly have an average of 729, compared to 712 for those who don’t.
• 46% of regular monitors saw an improvement within six months, compared to 41% of those who don’t check (source).
• A score of 750 or above is considered excellent, while anything below 700 can make loan approvals harder (source).

These figures underline one truth — credit awareness pays off.

• Pay all EMIs and credit card bills on time. Even one missed payment can lower your score.
• Keep credit utilisation below 30%. This is a key benchmark confirmed by financial experts (source).
• Avoid applying for multiple loans or cards at once. Each hard inquiry can pull your score down slightly.
• Maintain older credit lines. Long-term accounts build strong credit history.
• Check your score regularly for accuracy. Errors or unauthorised loans can be detected early (source).

Check your latest credit score here: udChalo Credit Score
 

The most common myths include believing checking your credit score lowers it, thinking salary affects your score, assuming no loans means a high score, and paying minimum dues is enough. In reality, soft checks don’t impact scores, income is irrelevant, no credit equals no score, and timely full payments keep your CIBIL score healthy.

Understanding the difference between credit myths and facts can save you money, reduce stress, and improve your financial security.
For Defence personnel and families, financial discipline is as vital as operational discipline — both require awareness and consistency.

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