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Which of the Following Does NOT Impact Your CIBIL Score?

This question — “Which of the following does not impact your CIBIL score?” — has been trending on Google, especially among students, loan applicants, and people preparing for finance exams.


Which of the Following Does NOT Impact Your CIBIL Score?
Which of the Following Does NOT Impact Your CIBIL Score?


The confusion exists because many everyday financial activities feel important, but only specific actions actually affect your CIBIL score.


In this blog, we’ll clearly explain:

  • What does NOT impact your CIBIL score

  • What actually DOES impact it

  • Common myths people believe in India

This is a simple, exam-friendly and real‑life explanation.


First, What Is a CIBIL Score?

A CIBIL score is a 3‑digit number (300–900) that reflects your creditworthiness. It is calculated by TransUnion CIBIL based on your credit behaviour, not your income or lifestyle.


Banks and NBFCs use it to decide:

  • Loan approval

  • Credit card approval

  • Interest rates


The Most Common Question (Exam Style)

Which of the following does NOT impact your CIBIL score?


Let’s evaluate common options one by one.

✅ Activities That Do NOT Impact Your CIBIL Score


1️⃣ Your Monthly Salary or Income

✔️ Correct answer in most exams

Your income:

  • Is NOT reported to CIBIL

  • Is NOT part of score calculation

Even if you earn ₹25,000 or ₹2,50,000 per month, your CIBIL score depends on repayment behaviour, not salary size.

👉 Income affects loan eligibility, not CIBIL score.


2️⃣ Your Bank Account Balance

Savings or current account balances:

  • Are NOT shared with credit bureaus

  • Do NOT impact your credit score

You can have a high bank balance and still have a low CIBIL score if repayments are poor.


3️⃣ Debit Card Usage

Using a debit card:

  • Does NOT involve borrowing

  • Is not a credit product

So:❌ Debit card swipes❌ ATM withdrawals❌ UPI transactions

👉 None of these affect your CIBIL score.


4️⃣ Cash Transactions

Paying in cash:

  • Is not reported to CIBIL

  • Does not create a credit history

Whether you spend ₹500 or ₹50,000 in cash, it does not affect your score.


❌ Activities That DO Impact Your CIBIL Score (Important)

Now let’s see what actually affects your score.


1️⃣ Late or Missed EMI Payments

This is the biggest negative factor.

  • Even 1 missed EMI can reduce your score

  • Delays are recorded monthly

Payment history has the highest weightage in CIBIL calculation.


2️⃣ Credit Card Utilisation Ratio

Using too much of your credit limit hurts your score.

Example:

  • Credit limit: ₹1,00,000

  • Usage: ₹80,000

This shows credit hunger and reduces your score.


3️⃣ Multiple Loan or Card Applications

Each loan or credit card application creates a hard enquiry.

  • Too many enquiries in short time = risky behaviour

  • Score may drop temporarily


4️⃣ Loan Defaults and Settlements

  • Loan settlement (paying less than due)

  • Written‑off accounts

These cause long‑term damage to your CIBIL score.


5️⃣ Length of Credit History

  • Older accounts = better score

  • Closing old credit cards can reduce score

Credit age matters more than people realise.


Quick Summary Table

Activity

Impacts CIBIL Score?

Monthly income

❌ No

Bank balance

❌ No

Debit card usage

❌ No

Cash spending

❌ No

Credit card EMIs

✅ Yes

Loan repayments

✅ Yes

Credit utilisation

✅ Yes

Loan defaults

✅ Yes

Why This Question Is Asked So Often

Because people assume:

  • More income = better score ❌

  • More savings = higher score ❌

In reality:

CIBIL score only reflects how responsibly you use borrowed money.

Final Answer (Clear & Exam‑Ready)

✔️ The correct answer to:

“Which of the following does not impact your CIBIL score?”

👉 Your income / salary / bank balance / debit card usage

(Depending on the options given, income is the most common correct choice.)


Important Tip for Improving Your CIBIL Score

Instead of focusing on income, focus on:

  • Paying EMIs on time

  • Keeping credit card usage below 30%

  • Avoiding unnecessary loan applications


Platforms like MyExcellentScore focus on education‑based credit improvement, helping users understand these exact factors legally and ethically.


Frequently Asked Questions

Does checking CIBIL score reduce it?No. Self‑checks are soft enquiries and do not impact your score.

Does closing a loan improve score?It helps only if the loan had a good repayment history.

Does UPI usage affect CIBIL?No. UPI transactions do not affect credit scores.

Disclaimer: This article is for educational purposes only and does not provide financial advice.






 
 
 

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