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Useful articles for your finance management by our team of experts

Top five Cibil score improvement myths

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improve cibil score

Most borrowers become aware of low credit score when their home loan applications are rejected. And then begins the maddening journey of finding ways to improve Cibil credit score. At this point to their misfortune, there appear so-called specialists in the form of well-wishers, friends and relatives, who offer solutions which make matters worse instead of resolving them. Here are a few such myths which need to be debunked:

Debt counselling

Having a debt counselling agency is a must, though it is not indispensable. If you are approaching one, check the credentials of the people who are advising you on debt. Avoid those who claim to offer you Cibil credit score of more than 750 in no time. Though you are supposed to start acting immediately, credit bureaus take some time to take a note of your efforts to reduce debt burden on your shoulders and to reflect it in your credit score.

Ignoring debt

Nothing happens, let them keep sending you notices, comes one advice. It is not true. Ignoring your credit card issuing bank can seriously damage your credit score as the bank notifies credit bureaus that you are a willful defaulter, which is enough to pull your Cibil credit score down.

Retirement funds

Use your retirement funds to retire debt, says some self-proclaimed money manager. Retirement fund takes a lifetime to accumulate. Instead start working on a debt-restructuring plan. Also your money in public provident fund cannot be attached by your creditors in the worst situation. Better, repay your loan using regular income.


Many a time debt-trapped individuals are told to get an individual with good credit score to apply as a co-applicant for a consolidation loan with low interest rate. But this is a risky proposition. You are risking your friend’s credit profile and if you can’t pay, you are further risking your relationship with him.

Identity Theft

Reading about identity theft news, one may be advised to claim identity theft as the reason for his debt. But never do so. Law enforcing agencies can find the truth in no time, and you will suffer more due to such a false claim.

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