CIBIL Score and Income:
CIBIL Score, also known as a Credit Score, is a three-digit number that shows your creditworthiness. It is issued by credit bureaus like TransUnion CIBIL. This score is calculated based on your past financial behaviour including loan repayments, credit card usage, and other transactions. A score of 750 or above is considered good and improves your chances of getting loans or credit cards.
Banks and financial institutions use this score to check how responsible you are with credit. A higher score indicates that you manage your finances well, while a lower score may make it harder to get credit approval.
There is a common myth that people with high income automatically have a high CIBIL score. However, income does not directly affect your credit score. The CIBIL score is not based on how much you earn but on how well you manage your credit.
For example, if someone with a high salary fails to pay credit card bills or loan EMIs on time, their score will drop. On the other hand, a person with moderate income who pays all dues promptly and maintains a low credit utilization ratio can have a very good score.
Payment History (35%) – Timely repayment of EMIs and bills.
Credit Utilization (30%) – Using less than 30% of your credit limit is ideal.
Length of Credit History (15%) – Longer credit history boosts your score.
Types of Credit (10%) – A mix of secured and unsecured loans helps.
New Credit Inquiries (10%) – Too many loan applications can hurt your score.
To sum up, your income doesn’t decide your CIBIL score — your credit behaviour does. Paying bills on time, maintaining low debt, and handling credit responsibly are the real keys to a good score. So, even if your income is modest, good financial habits can help you maintain a healthy CIBIL score.
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