Your credit score is one of the most important numbers in your financial life as it determines whether you get a loan how much interest you’ll pay and even your overall creditworthiness.
But thanks to misinformation and half-truths many borrowers still misunderstand how it works. From believing that checking your score lowers it to thinking that only the rich need good credit the myths are endless.
Let’s separate myths from facts and uncover the real truth about your credit score and credit report.
Myth 1: Checking Your Credit Score Will Lower It
Fact: Checking your own score is considered a soft inquiry, and it does not impact your score.
You can safely perform a credit score check anytime using trusted platforms like FatakPay to stay informed. Only lender-initiated “hard inquiries” (like multiple loan applications) can slightly reduce your score temporarily.
Myth 2: Having No Loans Means a Perfect Credit Score
Fact: Having no credit history means there’s nothing for lenders to evaluate which can actually make approvals harder.
Building credit history through responsible borrowing (like small unsecured loans) shows your ability to repay and builds trust over time.
Myth 3: Paying Off All Debts Instantly Improves Your Score Overnight
Fact: While paying off dues helps, credit score improvement takes time.
Your credit report reflects consistency that lenders look for steady, timely payments across several months. Quick fixes or sudden repayments won’t cause an instant jump.
Myth 4: Closing Old Credit Cards Boosts Your Credit Score
Fact: Closing old accounts can actually hurt your score.
Older accounts lengthen your credit history, which positively influences your score. Instead of closing them, keep them active with small transactions and regular repayments to maintain a strong track record.
Myth 5: A Low Credit Score Means Loan Rejection Is Guaranteed
Fact: Not true!
Many digital lenders like FatakPay assess more than just your score. Income stability, repayment history, and affordability are equally important. You can still access an instant loan for a low CIBIL score, especially through responsible, RBI-compliant digital lending platforms.
FAQs
1. What is a good credit score range for loans?
A score of 750 and above is generally considered excellent and increases your loan approval chances.
2. How often should I check my credit score?
Every 3-6 months. Regular checks help you monitor progress and detect errors early.
3. Can I get a personal loan with a low credit score?
Yes. Some lenders and apps like FatakPay provide instant personal loans for low CIBIL score borrowers after assessing alternative factors.
4. What affects my credit score the most?
Timely EMI payments, low credit utilisation, and a balanced credit mix are the top influencers of your score.
5. How can I improve my creditworthiness?
Make consistent repayments, avoid unnecessary loan applications, and regularly review your credit report for accuracy.
Stay Credit Smart with FatakPay
Don’t let myths cloud your financial growth. Understanding your credit is the first step toward improving it.
With FatakPay, you can:
✅ Check your credit score instantly
✅ Track your credit report progress
✅ Access instant personal loans even with a low CIBIL score
Knowledge builds confidence. Confidence builds credit. Download the FatakPay App today to check your score, access responsible credit, and take control of your financial future.
