My life insurance policy lapsed. Will this impact my credit score?
The credit score agencies arrive at a score based on information on your financial dealings
My life insurance policy lapsed. Will this impact my credit score?
Anuradha Singh, Delhi
The credit score agencies arrive at a score based on information on your financial dealings, which is mostly linked to your credit history like loan repayment and credit card payments. It is for this reason that a credit score is important for availing loans or credit card. This is because financial institutions generally check an individual's CIBIL score for any default history before providing credit approvals. It can also impact the terms of loan, such as the interest rate offered. However, a lapse in insurance policy will not affect your CIBIL score in any way.