Does checking your CIBIL report pull down your credit score?

When Ishaan Patkar, a Mumbai-based banker wanted to apply for a top-up loan a couple of years after he took a home loan, his loan agent stopped him from getting his personalized credit score.

"The loan agent said that it would bring my credit score down. I was scared. So I did not apply," said Patkar. This is a very common myth doing rounds in the country today.

When someone tells you a "funda" like that think twice. It's your own score. A credit report shows your credit worthiness. If you do not have a right over it nobody does. What you need to know is that your credit score goes down if more than one lender pulls up your score constantly. You personalized credit score from Credit Information Bureau of India Limited (Cibil) will give you a list people who pulled out your score recently.

In fact by making a loan application you are indirectly giving a lender the right to check your credit worthiness. So, it is also necessary to make sure that a lender is not pulling up their credit report without your consent.

It is imperative that individuals check their credit report regularly to make sure it's up to date and accurately reflects their circumstances. Mistakes can hurt their credit rating. If there are any inaccuracies in your report, raise a dispute immediately.

Get in touch with a bank that has not updated your records. In worst cases banks can be penalized too if they refuse to correct your records.

These days, everybody who cares about their financial health has to check their credit score periodically. Globally telecom companies, insurance companies and in many landlords too check the credit worthiness of an individual before they take on a customer or a tenant.

So keep a control of who is watching your credit score. Make sure you logon to the Cibil website periodically to get a personalized credit score. Stay financially healthy and happy.

Rajiv Raj

Rajiv is a credit expert with 10 years of experience in personal finance and consumer banking industry and another 7 years in credit bureau sector. Rajiv was instrumental in setting up India’s first credit bureau, Credit Information Bureau (India) Limited (CIBIL). He has also worked with Citibank, Canara Bank, HDFC Bank, IDBI Bank and Experian in various capacities.

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