They don't hurt your score

Nowadays, people have been extremely careful about their credit health so as to secure better loans with low interest rates. But mostly such people focus on what affects their credit score and ignore certain myths about things that supposedly affect their credit scores when they don’t. It’s necessary to know about what things don’t affect your CIBIL score so that you don’t waste time fretting over them.

Income: 
It will sound good to you that, income doesn't directly affect your credit score. Creditors know about your income from your application, not from your credit report. Income doesn't negatively affect your credit score but lenders would take your income into account to determine whether you would be able to make payments in future.

Personal Information:
Name, Address and birth date is included in your credit report but other than that your education level, marital status, race, age and gender won’t effect your credit rating whatsoever nor would they be taken into account to calculate your score.

Checking your credit report:
remove the myth and get clear that, checking your credit report is good financial habit and checking it at regular intervals won’t affect your credit score in a negative way but rather help you know more your credit health.

Application for credit rejected: 
When banks turn down your credit card or loan application, people believe that your credit report is affected. But this is purely myth, your credit report doesn't show if an application is declined or approved. Yes, there would be inquiries against your report when you apply for these loans, but being approved or rejected seriously won’t affect your credit score. So, feel happy about it. 

Paying bills of other people and small merchants:
Bill payments to small businesses don’t help build your credit score because most probably they won’t even show up on your credit report. Credit bureaus have strict requirements about who reports information to them and usually small businesses don’t fit into those requirements.

Also paying off somebody else’s bill won’t have any affect on your credit score. When a bills gets paid, it doesn't matter who paid it, the payment would get reported on the file of the person who borrowed the money.

For more queries visit : www.cibilconsultants.com

Source: Secondary

Restore your CIBIL score this way

Banks and credit card companies use credit scores to determine your credit worthiness and whether to qualify you for a loan. The higher credit score you have, the lower interest rates banks offer you and vice versa. Even some employers check your credit report before giving you the job and even landlords check before signing the lease. That is why, it is of utmost importance to have a good credit score.

Check errors:

Checking your credit score at regular intervals is one of the good financial habit. Most of the times the credit score dropping is cause of errors on the report. If you find errors, contact the bureau as soon as you can and go as per the procedure to rectify it.

Talk to the creditors:
If you are having financial problems, contact your creditors as soon as you can. They can help you with lower interest rates, and counsel you about balance transfers and debt consolidations.

Make your payments:
The hardest part- Try to make pay off all your debts and don’t accumulate any more debt. Turn to cash payments and cut down on your expenses till you pay off your debts.

Your credit score is your emergency financial tool for the future. If you don’t restore your credit it will keep going down and risk your chances of getting a loan in the future.

Source: Secondary