Effects of PAN Card on Credit Score

Your credit score varies from a Permanent Account Number or a PAN. A numerical representation of the financial creditworthiness is the credit score. PAN is a unique number given to Indian nationals for alpha-numeric identification. One of the significant pieces of documentation that help deter tax evasion is the PAN Passport, which serves as proof of identification. Since the PAN is a specific number, two individuals are unable to have the same PAN number. One individual can have only one Permanent Account Number, as per Section 139A (7). You can get a duplicate one with the same number even if you lose your PAN card.

So, if you change your PAN card or number, then it won’t affect your credit score. There is other information on the credit score, such as the birth date, financial transactions, residential address, etc. So, if you have changed your PAN number, the CIBIL program will display an alert on your account. One should not change his or her PAN number regularly to raise your credit score.

You can follow the tips listed below if you want to improve your score:


To raise your credit score, the following tips will benefit you:

  • Make your unpaid credit card bills and payments on time for loan EMIs.
  • Maintain as low as possible the credit utilization level, typically below 30 percent.
  • Apply for credit only when necessary.
  • Check your credit report and score consistently and rectify them immediately if you notice any errors.
  • Don’t close your oldest credit card account, as your credit score would have a positive effect.


The PAN card was issued by the Department of Income Tax. It includes a 10-digit number, while UIDAI (Unique Identification Authority of India) produces the Aadhaar number and has unique 12-digit numbers.

Recently, to file tax returns, the government of India has made it mandatory to connect the Aadhaar number to the PAN card. The effect of the rejected ITR by the Income Tax Department must be faced by someone who does not abide by this law.

Both the Aadhaar Card and your Credit Score are important to a person as they establish an individual’s unique identity.


PAN and Aadhaar ties are mandatory and can have a beneficial effect on your credit score. A person can either log into the e-filing portal or use SMS to connect the Aadhaar Card and PAN. Some of the advantages of connecting the two documents are listed below:

  • Linking PAN and Aadhaar would avoid the use of the same PAN number by individuals. For those who have never had a loan or credit card before, this may create a challenge.
  • Providing a PAN number is mandatory for logging into any credit bureau website as it authenticates one’s individuality. As the Aadhaar number is linked, this cuts down the duplication.
  • In rural areas, individuals can now withdraw cash using Aadhaar-enabled micro ATMs.This makes them qualify for every credit product to apply for.
  • The relation between the PAN card and Aadhaar number makes it easier to monitor people who use several PAN cards and regularly apply for a loan at different banks. This allows banking organizations to recognize a person involved in the practice of fraud operations.
  • The credit score can be obtained conveniently using your Aadhaar card. This is helpful when you are looking to apply for a loan or credit card.

In a nutshell, it doesn’t affect your credit history or score to change your PAN or Aadhaar number. And if your card has been compromised and you want a new one to be released, you will get the same number of duplicate papers.