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In the current digital era, it is quite easy to spread misinformation about anything, and the CIBIL score is no exception. Let’s look at some of the widely believed myths related to CIBIL score.

Myths Associated with CIBIL Score

Everybody knows the fact that a good CIBIL score is significant to avail a personal loan. It reflects the past borrowing record of the borrower and ensures timely repayment. However, there are some myths related to the CIBIL score. Here, in this article, we’ve busted the top two myths that you should know about before applying for a personal loan.

Low Credit Score Means No Loan

It is widely believed that your loan application will not be approved if you have a low CIBIL score. But, the same is not the case as you can still avail of a loan even if you have a relatively low credit score. Several NBFCs provide a personal loan for low CIBIL score. Therefore, during an emergency, you can choose such an NBFC and get the funding you require.

Zero Credit is Beneficial

Most borrowers make the mistake of assuming that zero credit history is beneficial for them for getting a loan. However, the truth is that lenders look for someone who has a reasonably responsible credit behavior. Even if you have not taken a loan, it is advisable to buy some products through EMI to maintain a decent CIBIL score. 

Wrapping it up

Keep in mind that the CIBIL score is not the sole factor a lender considers to sanction a loan. In addition to the CIBIL score, you also need to present proper documents and meet the eligibility criteria to get a loan.

Must Read: How to Avail of a Personal Loan with Low CIBIL Score?