Does My Savings Account Balance Affect My CIBIL™ Score - CreditMantri (2024)

FAQs

Does My Savings Account Balance Affect My CIBIL™ Score - CreditMantri? ›

A savings account or related information that is on your credit report will not have an impact on your credit score. The same goes for the activities in a savings account, like deposits and withdrawals.

Savings are not a credit product and therefore, do not have a direct impact on your CIBIL score. Everything that affects your CIBIL score makes its way into your CIBIL report. You will not find your savings in your CIBIL report as they do not directly affect your CIBIL score.

Your bank account information doesn't show up on your credit report, nor does it impact your credit score. Yet lenders use information about your checking, savings and assets to determine whether you have the capacity to take on more debt.

Your bank balance: Your CIBIL score is unaffected by the balance in your bank account. Your credit score won't be impacted by how much money you have in the bank or in your investment portfolio. Additionally, an inactive savings account with a negative or zero bank balance has no impact either.

The score is derived using the credit history found in the CIBIL Report (also known as CIR i.e Credit Information Report). A CIR is an individual's credit payment history across loan types and credit institutions over a period of time. A CIR does not contain details of your savings, investments or fixed deposits.

In some cases, a lender might ask for your bank account number to know where to send the loan funds after your application has been approved. Some online lenders may ask you to connect a business bank account to analyze and verify your revenues to see whether you qualify for an online loan.

Errors in your CIBIL report, such as an incorrect personal or account details, duplicate accounts, incorrect loan balance, error in outstanding balance, errors in reported active loans/credit, etc. may adversely affect your CIBIL score.

Multiple accounts can offer you additional FDIC coverage, and help you achieve specific savings goals. There should be little to no impact on your credit score for opening multiple accounts at different financial institutions.

If you have zero dollars in your savings account, your bank may start charging a monthly maintenance fee since you're not meeting a minimum balance requirement — or the bank may end up closing the account entirely if it remains unfunded for a certain amount of time.

In most cases, opening a checking or savings account is not reported to the major credit reporting bureaus and will not have an impact on your credit score. The same holds true for normal bank transactions and account balances.

How can I increase my CIBIL score fast? ›

Taking a large loan or even too many inquiries for such loans lead to a drop in the CIBIL score. A large loan can make you overly leveraged and too many inquiries alert the companies that manage the CIBIL score. It is a good idea not to make too many hard inquiries for loans, unless you need it urgently.

Your repayment and borrowing history, ongoing loans, credit card dues, etc., are all compiled by CIBIL and presented in your CIBIL report. It also contains your employment history and loan enquiry information. You can check these details by downloading this report from the CIBIL website.

Minimum CIBIL Score Required to Get a Credit Card

Banks usually accept a CIBIL score in the range of 700-750 and above to issue a credit card to an applicant. This is subject to the applicant meeting all other eligibility requirements. However, there are some credit cards offered to persons with low credit scores.

The CIBIL score is a 3-digit numeric summary of your credit history, derived by using details found in the 'Accounts' and 'Enquiries' sections of your CIBIL report, including (but not restricted to) your loan accounts or credit cards, and their payment status, as well as outstanding amounts' days past due.

A good CIBIL Score is a score between 700 to 900, which means the borrower has a higher chance of getting a higher loan amount at a low-interest rate. CIBIL has access to the credit information of around 600 million people and has 2,400 members that include lenders of all varieties.

Build up your savings

Having a buffer as a 'just-in-case' not only gives you reassurance if the unexpected happens, but can help with your credit score by giving you the flexibility to always pay your bills on time.

According to the Consumer Financial Protection Bureau, experts recommend keeping your credit utilization below 30% of your total available credit. If a high utilization rate is hurting your scores, you may see your scores increase once a lower balance or higher credit limit is reported.