5 things you wrongly believe impact your credit score
Several Indians, especially first time borrowers, still believe that factors like income level, marital status, or even checking their own credit score can negatively impact it. That's far from the truth.
'Many first-time borrowers wrongly think income, marital status, or checking their own credit score affects their rating. In reality, only how you manage credit—like timely repayments and low balances—matters,' says Sumit Sharma, Founder of Radian Finserv. 'For young and rural Indians, busting these myths is key to financial empowerment.'
Echoing the same, Akshay Aedula, Product and Growth at CRED, adds 'Your credit score reflects how you manage credit, not your income, spending, or how often you check it. The key is responsible usage: pay on time, keep utilisation low, build a solid history, and maintain a healthy credit mix.'
1. Checking your own credit score: One of the most persistent myths is that checking your own credit score will lower it and harm your overall credit profile. In reality, any self check done by you is categorised as 'soft inquiries' that is why it has no influence on your credit score.
On the contrary, professionals encourage consistent monitoring of your credit profile as it helps in staying informed and spot errors or fraud early.
2. Your income level: Many borrowers believe that a higher salary or income guarantees a better credit score. In reality the truth is far from this as this is never the case. Your income has no direct relation with your credit score.
Your credit score basically is determined by factors such as your credit history, payment behaviour, credit utilisation, level of debt and not your salary. Due to the same issue, someone earning ₹ 5 lakh per year can have a higher credit score whereas someone earning ₹ 10 lakhs may have no score at all if they have never used credit earlier.
3. Debit card usage: Using a debit card for purchasing products or services does not build or impact your credit score. Debit cards draw directly for your bank balance and do not involve any kind of credit facility. That is why do remember that only credit cards, personal loans and other credit products contribute to your credit history.
4. Bounced cheques (Unless for EMI):A cheque bounce is an offence under the Section 138 of the Negotiable Instruments Act, 1881. Still, a bounced cheque does not affect your credit score until and unless they were issued to pay an EMI of a personal loan or credit card pending payments along with any other credit related products payment.
In all such cases the missed EMI would be reported but otherwise bounced cheques do not influence your credit score. Lenders check at how you manage your credit and not your general banking habits.
5. Marital status or joint accounts: This is another extremely important myth that needs to be put to rest. Your marital status and joint bank accounts have no bearing on your individual credit score.
Credit bureaus such as CIBIL, CRIF High Mark, Equifax among others assess every individual's creditworthiness separately. This is done regardless of whether you have joint accounts or are married. On a fundamental level your spouse's credit behaviour does not influence your credit score.
Hence, consistently checking your credit score is a wise decision but rest assured self checks, debit card usage, income level, bouncing of credit non related cheques (unless for EMI) along with marital status do not influence your credit score. Getting a hold on these simple concepts can help you make smarter financial decisions and avoid unnecessary stress.
Disclaimer: Mint has a tie-up with fintechs for providing credit; you will need to share your information if you apply. These tie-ups do not influence our editorial content. This article only intends to educate and spread awareness about credit needs like loans, credit cards and credit scores. Mint does not promote or encourage taking credit, as it comes with a set of risks such as high interest rates, hidden charges, etc. We advise investors to discuss with certified experts before taking any credit.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hans India
a few seconds ago
- Hans India
India clocks rapid progress in food, energy and defence sectors over last 10 years: Report
India has undergone a profound transformation in the three pillars of national security - food security, energy security, and defence security over the last 10 years, driven by a clear vision in policymaking, strategic investments, and rapid technological adoption, according to an article in India Narrative. The country has emerged as the second-largest producer of rice and wheat, and the largest producer of pulses and sugar. Foodgrain output surged from 256.4 million tonnes in 2015–16 to 315.72 million tonnes in 2021–22, representing a near 60 million tonne increase over a decade. This achievement has been anchored in a multipronged approach: improved irrigation, mechanisation, high-yield seed varieties, and farmer-focused welfare schemes. Key schemes bolstering this effort include the PM-KISAN scheme, which gives direct income support to over 110 million farmers, the MGNREGA rural employment security that indirectly strengthens purchasing power for food, as well as the Soil Health Card Scheme and PM Krishi Sinchayee Yojana, which target sustainable soil and water management. India's agricultural exports - from shrimp to spices - have reinforced not only national income but also regional food supply stability, making it a reliable contributor to global markets. The article highlights the rapid transformation in the country's energy security since 2014, when millions of Indians still lacked basic electricity. However, by April 2018, India declared 100 per cent village electrification, connecting over 28 million households. Rural and urban electrification programmes such as DDUGJY and SAUBHAGYA closed long-standing access gaps, while the Ujjwala Yojana replaced smoky chulhas with LPG connections for low-income households. As of June 2025, India's installed power capacity stands at 476 GW, with renewables contributing 47.7 per cent - a seismic shift from around 16 per cent in 2015. Solar power has seen an extraordinary leap, from 9 GW in 2016 to 110.9 GW in 2025, positioning India third globally in solar capacity. Wind energy, too, has expanded to 51.3 GW, ranking fourth worldwide. Power shortages, which were a chronic drag on industry, have fallen from 4.2 per cent in 2013–14 to 0.1 per cent in 2024–25. Energy diversification, alongside strategic oil reserves and overseas asset acquisitions, has cushioned India from supply shocks. India's defence transformation has also been marked by a decisive move towards self-reliance under the Aatmanirbhar Bharat framework. Indigenous missile programmes - Agni, Prithvi, and BrahMos (the world's fastest cruise missile) - have enhanced deterrence. INS Arihant, the first nuclear-powered ballistic missile submarine, has strengthened India's nuclear triad. Recent innovations include the Pralay tactical missile with high-precision, quick-deployment capability and the Agni Prime missile, which has been upgraded into a long-range strike weapon. Defence Industrial Corridors in Tamil Nadu and Uttar Pradesh have attracted Rs 20,000 crore in commitments, with Tamil Nadu alone drawing Rs 11,794 crore by 2024. This ecosystem has fuelled record defence exports to over 100 countries, a dramatic rise from serving just around 20 nations a decade ago. Besides, Indian forces are adopting AI-powered battlefield systems, smart armour, exoskeletons, and AR-enabled tactical gear. The success of Operation Sindoor against Pakistan showcased the effectiveness of indigenous platforms - Akash missile systems, BrahMos, Tejas fighter jets, and LCH Prachand helicopters. Cross-border security has improved, with a notable decline in insurgency incidents, the article added.
Time of India
an hour ago
- Time of India
Put up or shut up: US warns Europe on China tariffs, hints at higher India duties over Russian oil
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel The US has warned European nations to be ready to support steep tariffs on Chinese goods and signaled that India could face higher duties over its purchases of Russian oil, Treasury Secretary Scott Bessent said. Speaking to Bloomberg TV, Bessent urged Europe to 'get on board' with tougher trade measures, saying he was disappointed by the tepid response when he floated the idea at a Group of Seven (G-7) meeting earlier this said sanctions on Russia 'can go up' or 'can be loosened' depending on the outcome of a meeting scheduled for Friday between President Donald Trump and Russian President Vladimir Putin. 'The Europeans need to join us in these sanctions. They need to,' he said. 'It's put up or shut up time. We put secondary tariffs on the Indians for buying Russian oil. And I could see if things don't go well, then sanctions or secondary tariffs could go up.'Since Russia's invasion of Ukraine in February 2022, the US, European nations, Japan and other allies have imposed multiple rounds of sanctions. The European Union adopted its 18th package in July, which included restrictions on Russian remarks appeared to refer to Trump's use of so-called secondary tariffs targeting purchases of Russian energy. Trump has imposed a 25% tariff on goods from India, due to take effect later this month, over New Delhi's Russian oil imports , in addition to a 25% base tariff, effectively doubling the rate to 50%.At the G-7 meeting in Canada, Bessent recalled asking fellow leaders: 'Is everyone at this table willing to put a 200% secondary tariff on China?' He said the question was met with silence: 'Everybody wanted to see what kind of shoes they were wearing.'Bessent added that Trump 'will make it clear to President Putin that all options are on the table' during their upcoming inputs from Bloomberg
Time of India
an hour ago
- Time of India
Swadeshi 2.0: India is no longer just a market, it's a maker
India is in the middle of a Swadeshi 2.0 moment. Trade tensions abroad and a booming consumer market at home are pulling global manufacturers to set up shop here. Indian companies are seizing the moment with joint ventures and strategic stakes. Apple, VinFast, and Tesla are ramping up local operations, while the country pushes into high-value sectors like semiconductors. Tired of too many ads? Remove Ads The geopolitical backdrop Tired of too many ads? Remove Ads Indian firms in the driver's seat Tired of too many ads? Remove Ads Global production, local control The Indian consumer Why India is attracting global business India as an outward investor The bottom line A century ago, the Swadeshi movement was a defiant act of resistance, urging Indians to boycott British goods. In 2025, the idea has evolved dramatically. It's no longer about shutting the world out; it's about drawing the world in, on India's shift is reshaping global commerce, verified not by rhetoric but by factory floors, joint ventures, and capital corporations aren't just selling to India anymore, they're making here. Supply chains are being reconfigured, bargaining power is shifting, and value creation is increasingly global trade tensions are amplifying this President Donald Trump doubled tariffs on Indian goods to 50%, citing India's discounted oil purchases from Russia. Washington views this as indirectly financing the war in Delhi, however, has stayed its course, signing fresh agreements to deepen economic cooperation with 2.0 isn't about exclusion; it's about control. The emphasis is on who commands capital, sets governance rules, and drives localisation. Foreign investment is welcome, but Indian hands remain firmly on the the SAIC Motor–JSW Group automotive joint the Chinese parent of MG Motor, reduced its stake in MG Motor India to 49%, while JSW acquired 35%. The remaining 16% is held by Indian investors, including financial institutions, employees, and dealers. Indian stakeholders now hold a collective majority, controlling strategy, governance, and Tata-backed IHCL acquired a 51% stake in ANK Hotels Pvt Ltd and Pride Hospitality for ₹204 crore, planning to rebrand most properties as Ginger and expand to roughly 250 Chhatwal, IHCL MD and CEO, frames it simply: to make Ginger 'India's number one mid-market brand serving 500 million potential customers in the next three to five years.'Consumer goods illustrate the same Distilleries' Indri whisky is now the world's fastest-growing single malt, capturing a 30% market share in India and selling over one lakh cases within two years. Indian single malts now account for 53% of category sales, proving that homegrown brands can dominate both locally and same playbook is playing out far beyond spirits. Whether in luxury goods, tech, or manufacturing, Indian companies and partnerships are building scale, meeting domestic demand, and earning global recognition, while keeping profits, decision-making, and influence at of the clearest examples is Apple's expanding production footprint in India, a Make in India success story in motion. Government incentives, especially the Production-Linked Incentive scheme, have transformed the country into a hub for high-value electronics Electronics plays a pivotal role: after acquiring Wistron's iPhone plant, it became Apple's first Indian contract manufacturer and later took a 60% stake in Pegatron's iPhone facility in Tamil is also building a new iPhone plant in Hosur, significantly boosting production capacity. Taiwanese manufacturers Foxconn and Pegatron have invested heavily as late 2025, most iPhones sold in the US were made in India, a clear sign the country has become a global production hub, not just a sales appeal as a manufacturing base extends beyond electronics. Vietnamese EV maker VinFast has made India a launchpad for global new Thoothukudi facility, part of a $500 million first-phase investment in a planned $2 billion expansion, went from groundbreaking to production in just 15 months. The 400-acre factory is explicitly designed for exports across South Asia, the Middle East, and is also entering the opening its first showroom in Mumbai in July and a second in Delhi in August, the company is signaling serious intent, even while selling China-made Model Ys at nearly ₹60 lakh. India's reduction of import duties on high-value EVs, from 100% to 70%, makes local production a compelling high-value manufacturing is no longer optional; it's Tata–PSMC semiconductor fab in Gujarat aims to roll out the first Made in India chip by late 2025, ahead of $2.75 billion assembly and test facility in Sanand is on track, and the Union Cabinet has approved four new semiconductor units with combined investment of ₹4,600 is building strategic, high-value industries from the ground up, creating both domestic capacity and global decades, India was primarily a sales destination. That has flipped. Exports hit $825 billion in FY 2024–25, yet domestic consumption is now driving investment and strategic RBI projects 6.5% GDP growth in FY 2025–26. An Edelweiss report estimates India's consumer market will be the world's second largest by 2030. Festive sentiment surveys show 92% of consumers plan to maintain or increase spending in 2025, with average budgets around ₹16, message is clear: produce for India first. Global firms are adjusting, and India has become a driver of strategy, investment, and production highlights three core advantages: talent, consumers, and infrastructure. Trade-flow shifts could bring $0.8–$1.2 trillion by 2030 and raise manufacturing's GDP share from 16% to 25%.About one-third of the world's STEM graduates are R&D, and sourcing could jump from $44–45 billion today to $130–170 billion by investments of $1.8 trillion by 2025 are modernising ports and logistics. Monthly household consumption has climbed from $271 in 2012 to $705 in 2023, reflecting India's massive population and rising outbound investments are surging and FY25, they jumped 75% to ₹2,51,412 crore ($29.2 billion). Outbound deals aren't capital flight, they widen market access, bring technology home, and professionalise supplier FY26 (April–May 2025), actual ODI reached ₹46,321 crore ($5.38 billion), with Singapore, Mauritius, and the US as top moves include Aditya Birla Group's $50 million R&D centre in Texas and Essar–Kowa's $8.5 billion green hydrogen joint first Swadeshi was about buying Indian. The current phase is about building with India. Partnerships, factories, and investments show that global companies no longer have to choose between selling to India and producing stay relevant in one of the world's most dynamic markets, they are making in India, and seeing the country's shift from being just a large market to becoming a significant producer.
