Credit Score(CIBIL)
?? Myth: Your credit score is solely determined by your income and financial status.
?? Fact: Your credit score is based on a variety of factors, including: - Payment history: Whether you pay your bills on time.
- Credit utilization: The percentage of your available credit you're using. - Length of credit history: How long you've had credit accounts.
- Types of credit: Whether you have a mix of credit cards, loans, etc. - New credit: Applications for new credit can temporarily lower your score.
?? A good credit score is crucial for obtaining loans, credit cards, and better interest rates. It is not solely dependent on your income, but rather your financial responsibility and credit management habits.
?? Myth busted: Don't underestimate the impact of your credit behavior. It's important to actively manage your credit and make timely payments to maintain a healthy credit score.