CIBIL Credit report folklore busted

There is no such thing as a credit ‘blacklist.’

And there's no single ‘score’ that bankers use when deciding whether to let people borrow. Instead, bankers use individual criteria to assess how unsafe, or lucrative, a customer you’re likely to be, and it's possible that while one banker will reject you for a credit card or loan, another might accept you. This applies even when they are accessing exactly the same version of your credit file, through the same credit reference agency CIBIL.


An outstanding credit rating does not promise you’ll be accepted for credit.


Eccentric as it sounds, applicants who have an excellent credit rating and who have rarely taken out credit before may be more likely to be turned down than a borrower who is under financial wrench. Lenders look for evidence that you’ll be able to pay back what you borrow, so not having any record of successful repayments can definitely count against you.


You won’t be penalised for being rejected for credit.



This is because credit reports do not record the outcome of an application. However, making multiple applications within a short space of time will have a negative impact on your credit report as it could suggest to lenders that you are in financial difficulty.