What Are The Factors That Affect Your Credit Score?

Your credit score (calculated by bureaus like CIBIL) is a key financial asset. Key factors driving it are:

• Payment History (35%): Paying credit card bills and EMIs on time is the single most critical factor.
• Credit Utilization Ratio (30%): Keep your credit card spending below 30% of its total available credit limit.
• Credit Mix (15%): Maintaining a healthy mix of secured (car/home) and unsecured (personal) credit.
• Recent Hard Queries (10%): Frequent loan applications indicate high hunger for credit and can lower your rating.