Help and Advice

Does Getting A New PAN Affect CIBIL Score?

Here's What Your CIBIL Report Can Do For You
Viveka Rao
Written by Viveka Rao

New PAN Affect on CIBIL Score Improving India's Credit EverydayYour CIBIL score is very important for a lot of things. It helps you to take loans as well as credit cards. Financial institutions and banks look at your CIBIL score and then only allot you a credit card or pass your loan. If you have a poor CIBIL score, then it is more likely that your loan application will get rejected.

Why Do you Need a Credit Report?

A credit report is the one that tells your CIBIL score along with the factors that determine your credit score. It is useful in many ways.

  • It includes your past as well as current credit history.
  • By analyzing your current CIBIL score, you can manage and regulate your future finances.
  • A good CIBIL score, as decided by your credit history, will aid you in getting your loans sanctioned quickly and easily.
  • It allows you to identify your credit worthiness.
  • Generally a credit score above 750 is regarded as a good score.
  • You will automatically realize whether you should proceed for fresh credit or not.

Your PAN number and CIBIL score

Now, let us come to the main point of this article. Many people get confused about their PAN number and CIBIL score. They want to know how their PAN can affect their credit score. Moreover, they ask questions as to if they change their PAN number or get a new PAN card, then what effect it will have on their CIBIL score. Will their credit score vanish completely or will it be the same?

Let me tell you that PAN stands for Permanent Account Number. Every individual gets a unique PAN number, which varies from one person to the other. No one has a same PAN number. Moreover, no one individual can have over one PAN number. This is stated by the law in Section 139A(7). And, if you break this law, you will have to pay Rs. 10,000 as penalty under Income Tax Act’s Section 272B.

And, when it comes to the CIBIL score, it does not have any effect, if you change your PAN number or get a new PAN card. This is because the credit score is recorded with many other things, apart from your PAN. This includes your various banking transactions, date of birth, residential address, and so on.

Therefore, if you get a new PAN number, then the CIBIL software’s intelligence system will most probably throw a warning signal on your account. So, it is recommended that you do not change your PAN number. Rather, you should work on improving your credit score through liable ways.

Improve your CIBIL score

Some of the ways through which you can improve your credit score are:

  • Pay your credit card bills on time regularly, within a specific time period
  • Do not register for too many loans
  • Do not take numerous credit cards and unsecured loans on one name
  • Take fresh loans after some gap, generally a gap of 6 to 12 months
  • Always collect the “No due Certificate” after closing the loan
  • Always utilize the lesser specified limit on credit cards

And of course the best thing you can do to improve your CIBIL score is stay close to CreditSmart! We offer tips for managing your credit everyday, along with lots of other useful reviews and money tips. See you tomorrow!

About the author

Viveka Rao

Viveka Rao

Viveka Rao is post grad in finance and a freelance writer here at CreditSmart. A love for shopping and travel rewards has fueled her interest in personal credit, and making the most of rewards programs. She writes to educate other consumers in making great financial choices.

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