Answer: B. Borrower’s creditworthiness RBI describes a credit score as a three-digit measure of creditworthiness based mainly on credit history and other factors.
How is a credit score usually presented?
A Three-digit number
B A bank account number
C A tax identification code
D A loan agreement
Answer: A. Three-digit number Credit bureaus provide the score as part of a credit information report.
Which record usually accompanies a credit score?
A Property sale deed
B Salary certificate
C Insurance schedule
D Credit information report
Answer: D. Credit information report The score is issued with a credit information report that contains details about credit history.
Who compiles a CIBIL report?
A The loan applicant
B The vehicle dealer
C TransUnion CIBIL
D The income tax portal
Answer: C. TransUnion CIBIL CIBIL compiles credit information received from banks and financial institutions.
Which repayment habit can support a stronger credit profile?
A Miss every second bill
B Pay on time
C Keep all accounts overdue
D Ignore due dates
Answer: B. Pay on time RBI says timely repayment of loans is associated with responsible credit behavior.
What can late payments do to a CIBIL score?
A Negatively affect it
B Guarantee a score increase
C Erase the report
D Set a bank’s rate
Answer: A. Negatively affect it CIBIL lists late or missed payments among factors that may negatively affect a score.
How does credit utilization describe card use?
A Annual income versus taxes
B Loan tenure versus EMI
C Savings versus rent
D Credit used versus available
Answer: D. Credit used versus available Credit utilization compares the credit used with the available credit limit.
Which utilization pattern can signal greater credit risk?
A Low account activity
B No recent address change
C High credit utilization
D A small loan balance
Answer: C. High credit utilization CIBIL explains that high utilization may suggest the borrower is near the available credit limit.
What can a longer credit history show lenders?
A Guaranteed loan approval
B Track record over time
C A fixed interest rate
D No future borrowing
Answer: B. Track record over time The age of credit accounts can contribute to the credit profile by showing history over time.
Which factor may be included in CIBIL score calculation?
A Recent credit enquiries
B Favorite payment app
C Vehicle color
D Tax refund date
Answer: A. Recent credit enquiries CIBIL lists recent credit applications or enquiries among score factors.
How can many applications in a short period affect a score?
A Always erase the score
B Guarantee better terms
C Close every account
D May lower the score
Answer: D. May lower the score CIBIL says frequent credit applications in a short period may negatively affect the score.
Does a high credit score guarantee loan approval?
A Yes, it guarantees approval
B Yes, income is ignored
C No, lenders assess more
D No, scores are never used
Answer: C. No, lenders assess more RBI notes that lenders consider credit score and history along with other factors.
Which details may a lender consider besides score?
A Only the applicant’s nickname
B Income and existing obligations
C Only the phone model
D Only the home address
Answer: B. Income and existing obligations Loan decisions can consider income, repayment capacity, existing debts, and other underwriting factors.
How may a stronger score affect borrowing terms?
A It may help, not guarantee
B It guarantees the lowest rate
C It cancels loan fees
D It replaces income checks
Answer: A. It may help, not guarantee RBI says a higher score may usually support a lower rate when other things remain equal.
What does a credit mix describe?
A Different bank branches
B Different salary dates
C Different loan due dates
D Different types of credit
Answer: D. Different types of credit CIBIL includes the types of credit accounts among factors that may influence the score.
Which account information may appear in a credit report?
A Only current bank balance
B Only monthly household bills
C Open and closed accounts
D Only property taxes
Answer: C. Open and closed accounts CIBIL describes reports as containing open and closed credit accounts and payment history.
What should a borrower do before applying for a large loan?
A Rely on an old screenshot
B Review credit report
C Ignore account status
D Use another person’s score
Answer: B. Review credit report Reviewing the report can reveal inaccurate entries or forgotten account information before an application.
How often does RBI require a free full credit report?
A Once each calendar year
B Once each business day
C Only after loan rejection
D Every five years
Answer: A. Once each calendar year RBI directs credit information companies to provide an authenticated individual one free full report, including score, once in a calendar year.
Which items are included in the RBI free annual report?
A Only a loan advertisement
B Only a bank statement
C Only a payment reminder
D Report and credit score
Answer: D. Report and credit score The RBI’s free full credit report includes the individual’s credit score and detailed credit information.
Where can a borrower request the free annual report?
A A vehicle showroom
B A social media group
C Credit bureau website
D A tax office
Answer: C. Credit bureau website RBI says the procedure for accessing the free report is published on each CIC’s website.
If a report contains a wrong account, what should be done?
A Ignore the entry forever
B Raise a correction dispute
C Apply for more loans
D Delete all bank records
Answer: B. Raise a correction dispute RBI says borrowers may request the CIC or credit institution to correct inaccurate report information.
Who may need to correct inaccurate credit data?
A CIC or reporting lender
B A vehicle dealer
C A social media contact
D A random loan agent
Answer: A. CIC or reporting lender A correction may require review by the credit information company or the bank or NBFC that supplied the data.
What type of CIBIL issue can be disputed online?
A A lender’s office hours
B A vehicle’s resale price
C A tax payment
D Inaccuracy or duplicate enquiry
Answer: D. Inaccuracy or duplicate enquiry CIBIL allows disputes for report inaccuracies, enquiries, and duplicate enquiries.
Why check the enquiry section of a report?
A Find monthly utility bills
B Check a property boundary
C Identify lender credit checks
D See vehicle service history
Answer: C. Identify lender credit checks The report lists credit enquiries, which can help a borrower spot unfamiliar application checks.
What can an unfamiliar credit enquiry indicate?
A A guaranteed new loan
B Possible unrecognized application
C A tax refund
D A closed utility account
Answer: B. Possible unrecognized application An enquiry the borrower does not recognize should be reviewed and disputed if inaccurate.
Which behavior may help avoid unnecessary enquiries?
A Apply selectively
B Submit every application available
C Borrow without comparing
D Repeat applications daily
Answer: A. Apply selectively CIBIL notes that many credit applications in a short period may negatively affect a score.
How can an inaccurate closed-account status be handled?
A Open another account immediately
B Ignore the discrepancy
C Change the borrower’s PAN
D Request report correction
Answer: D. Request report correction Borrowers can request correction when report details do not match their account records.
What should be checked after repaying a loan?
A A new bank logo
B A utility meter reading
C Account status and balance
D A vehicle’s fuel level
Answer: C. Account status and balance Reviewing account status can help ensure the report reflects the lender’s latest information.
Does closing a loan erase its history immediately?
A Yes, every record vanishes
B No, report records remain
C Yes, the score becomes zero
D No, closure is never reported
Answer: B. No, report records remain Credit reports can include both open and closed accounts and their repayment history.
Which payment record can influence credit history?
A Loan and card repayments
B Cash grocery purchases
C Utility bills paid offline
D Travel ticket bookings
Answer: A. Loan and card repayments CIBIL tracks loan and credit-card repayment behavior as part of credit information.
Why does paying a credit card bill on time matter?
A It sets a mortgage rate
B It closes the account
C It removes the credit limit
D It supports payment history
Answer: D. It supports payment history CIBIL includes credit-card repayment behavior in factors affecting the score.
What does a credit bureau do with lender data?
A Approve every loan
B Set every bank rate
C Compile credit information
D Collect income tax
Answer: C. Compile credit information A credit bureau compiles data provided by credit institutions into reports and scores.
Can a credit bureau approve a bank loan?
A Yes, it sanctions every loan
B No, the lender decides
C Yes, it sets the EMI
D No, reports contain no data
Answer: B. No, the lender decides Credit bureaus supply information; the lender makes the loan decision.
Does checking your own CIBIL score lower it?
A No, it has no impact
B Yes, every check lowers it
C It erases repayment history
D It resets score to zero
Answer: A. No, it has no impact CIBIL says checking your own score does not affect it; a lender’s credit enquiry is different.
For CIBIL specifically, which published range is commonly shown?
A 0 to 100
B 1 to 10
C 1000 to 5000
D 300 to 900
Answer: D. 300 to 900 CIBIL’s published materials show its score on a 300-to-900 scale.
What can an NA or NH score indicate?
A Guaranteed loan approval
B A paid-off mortgage
C Limited credit history
D A high income
Answer: C. Limited credit history A score may be unavailable when there is insufficient credit history to calculate one.
Why can two bureaus show different scores?
A Scores are always identical
B Models and data may differ
C Banks choose a score randomly
D A report has no history
Answer: B. Models and data may differ Different credit information companies may use their own scoring models and may hold different data.
What should a borrower do if a payment is missing from the report?
A Check with reporting lender
B Apply for another card
C Ignore the lender statement
D Change the payment date
Answer: A. Check with reporting lender The reporting lender may need to verify and update the information supplied to the bureau.
How should a score be interpreted?
A A complete financial picture
B A guaranteed interest quote
C A legal loan approval
D One part of credit assessment
Answer: D. One part of credit assessment RBI says institutions assess score and history together with other factors.
Which outstanding-balance trend may affect credit evaluation?
A Phone battery level
B Vehicle mileage
C Long-term balance pattern
D Tax refund timing
Answer: C. Long-term balance pattern CIBIL lists the long-term trend in outstanding balances among factors that can affect the score.
What can a low score suggest to a lender?
A Guaranteed default
B Higher perceived repayment risk
C Automatic loan cancellation
D A missing PAN
Answer: B. Higher perceived repayment risk A score reflects creditworthiness and may affect how a lender assesses risk, but it is not a complete borrower profile.
If report details are inaccurate, what evidence may help?
A Statements and payment proof
B A social media profile
C A product advertisement
D An unrelated utility bill
Answer: A. Statements and payment proof Relevant lender statements and payment records can help substantiate a correction request.
How should borrowers protect credit-report access?
A Share login details publicly
B Send OTPs to callers
C Post reports online
D Use official bureau channels
Answer: D. Use official bureau channels Credit reports contain sensitive financial data and should be accessed through verified channels.
Can checking a report help find identity misuse?
A No, reports hide accounts
B Yes, it approves a loan
C Yes, review unfamiliar accounts
D Only lenders view reports
Answer: C. Yes, review unfamiliar accounts Reviewing accounts and enquiries can reveal activity the borrower does not recognize.
Which practice may support responsible credit use?
A Use every limit fully
B Keep balances manageable
C Miss minimum payments
D Open many accounts quickly
Answer: B. Keep balances manageable CIBIL recommends prudent credit utilization and timely repayment as healthy credit practices.
Why should borrowers avoid treating score improvement as instant?
A Updates depend on records
B Scores never change
C Banks control every bureau
D Reports omit payment history
Answer: A. Updates depend on records Scores reflect reported credit information and may change as bureau data is updated.
How can a borrower follow a dispute?
A Send repeated payments
B Delete the report
C Ask an unknown caller
D Use bureau tracking process
Answer: D. Use bureau tracking process CIBIL provides an online process to raise and track report disputes.
What may happen if a complaint remains unresolved beyond RBI’s period?
A Automatic score deletion
B Automatic loan sanction
C RBI Ombudsman route may apply
D No further option exists
Answer: C. RBI Ombudsman route may apply RBI guidance describes escalation to the Ombudsman where a complaint remains unresolved beyond the specified period.
Which source should a borrower trust for report corrections?
A Anonymous social post
B Credit bureau and lender
C Unverified agent
D A friend’s account
Answer: B. Credit bureau and lender The credit bureau and reporting lender are the appropriate channels for checking and correcting report data.
What supports a healthier loan application profile?
A Accurate records and timely payments
B Many simultaneous applications
C Unreported loan balances
D Ignored overdue notices
Answer: A. Accurate records and timely payments Timely payments, manageable utilization, and accurate reports support a stronger credit profile.