Know how credit score is determined, what factors affect it

How is the Credit Score Calculated: Credit score plays the most important role in getting you a loan. Those who have a bad credit score find it difficult to get a loan. Credit score ranges from 300 to 900. Generally a credit score above 750 is considered good. Those who have a higher credit score are also more likely to get a loan. But do you know how the credit score is finally determined? This is what we will tell you today.

credit bureaus

  • The credit score of customers is determined by several credit bureaus.
  • Major credit bureaus include Trans Union CIBIL Experian, CRIF High Mark and Equifax.

what do credit bureaus

  • Keeps a record of your monthly bill and loan installment payments.
  • He calculates your credit score based on the records of a few years.

p style="text-align: justify;">Credit Utilization Ratio

  • Credit Utilization Ratio ie CUR means that the credit limit of your credit card is how much you use in a month.
  • CUR has a great impact on credit score. Your CUR depends on how much you use your credit card.
  • The more you use your credit card, the higher your CUR.

old credit card

  • Having a very old loan or using a credit card for many years is considered good in terms of credit score.
  • Actually it shows that you are using the loan properly. You pay the installments on time.

Don’t apply repeatedly

  • Do not apply for loan or credit card repeatedly.
  • This is not considered good in terms of credit score. This reduces the credit score.

Make loan payments on time

  • Repay the loan EMI regularly and don’t miss it.
  • If you make one late payment or default, this will save you
  • Credit score 100 points

Read also:

EPFO New Rules: Government has given big facility to PF account holders, in case of medical emergency, advance up to Rs 1 lakh can be withdrawn

Zomato IPO: Zomato’s IPO will open from July 14 to 16, know how many shares will be available


Leave a Reply

Your email address will not be published. Required fields are marked *