Factors that don't affect credit scoreAlmost everyone knows what has a negative impact on their credit score. Don’t you? Some of them include late payment of credit card bills, not paying your loans on time, defaulting on your loans and applying for too many loans or credit cards at the same time. If you have done any of these, your score is likely to go down.

What are the factors that improve your score? Paying your credit card bills and loans on time, maintaining a good mix of secured and unsecured credit and having a low credit utilisation ratio (Read this post for more information – Five Ways To Improve Your Credit Score)

But not many know what doesn’t affect their credit score. These include things like a person’s income and their socio-economic status. Want to know more? Here’s a list of things that don’t have any effect on your credit score – negative or positive.

Loan against FDs

Even though loans like a personal loan and car loan are reported to credit information bureaus, loans against fixed deposits are not reported by banks to credit information bureaus unless there is a default. So, late payments on your loan against fixed deposits don’t have a negative impact on your credit score.

Your income

You always thought the rich will have a higher credit score and the poor a very low credit score? This is a myth. Credit score doesn’t take into account the income of the individual. Only their credit history will matter. Even if you look at a  credit report, it will have no information on your income. If somebody earning a high salary defaults on their loan, their credit score will go down. However, note that your employment history will be mentioned on your credit report.

Phone bills

Didn’t you pay your landline or mobile phone bill on time? Don’t worry! This won’t affect your credit score. Only financial institutions report about late payments and defaults to credit information bureaus. Telecom operators don’t. But if you made a phone bill payment using your credit card and you didn’t pay the credit card bill, it will affect your credit score.

Insurance payments

It’s past the due date and you haven’t paid your insurance premium? This will not affect your credit score. Even if your policy got cancelled due to non-payment of premium, it will not affect your credit score. However, insurance companies might consider your credit score before deciding on your insurance premium if you are going for a high sum assured.


Even if you haven’t paid your rent or have paid your rent late, it will not affect your credit score. This is because the landlord doesn’t report to credit information bureaus! Paid your rent on time, every time? Your credit score is not going to improve because of this although your landlord will be happy.

Amount of interest paid

You have a loan that has a high interest? Paying a ton of interest will have no impact on your credit score. As long as you are paying your EMIs in full, every time, your score will improve. The amount of interest paid does not affect your credit score.  However, some financial institutions offer lower interest rates to those with a high credit score.

Factors such as your education and using debit card also don’t affect your credit score. It is best to check your credit score at least once a year to ensure that your score hasn’t fallen. You can also correct errors, if any, on your credit report.

Also Read

Five ways to improve your credit score

How to use credit cards to improve credit score

Understanding your credit report

Staff Writer

This article is written by RupeeIQ editorial staff.