menu
The Big 5 Top Factors That Affect Your Credit Score
The Big 5 Top Factors That Affect Your Credit Score
India has a huge monetary area comprising in excess of 900 banks and monetary establishments which offer various types of credit facilities and loan to borrowers.

The Big 5 Top Factors That Affect Your Credit Score

 

India has a huge monetary area comprising in excess of 900 banks and monetary establishments which offer various types of credit facilities and loan to borrowers. While lending a credit facility  for example, a loan, how do these banks and institutions actually look at the borrower's creditworthiness? The response is, through an individual's credit score.

 

When a borrower applies for a loan or other type of credit, the money lender or bank really looks at his/her credit score. Subsequently, a good credit score is extremely vital to effortlessly get a loan at sensible credit terms.

 

Many elements influence a credit score. Here, we will examine the best 5 elements influencing the credit score.

What is a Credit Score?

A credit score is a 3-digit number that reaches somewhere in the range of 300 and 900. It goes about as a rundown of a borrower's credit history and overall creditworthiness.

 

A credit score over 750 is viewed as a good score and lenders prefer this higher credit score, i.e., a score between 750 - 900. For a borrower, it additionally works on the odds of effectively getting a loan or other credit facility at reasonable terms.

What Factor Has the Biggest Impact on Credit Score? 

A credit score is usually affected by many factors. Here, we will highlight the top 5 factors that affect credit score:

  1. Repayment History

  2. Credit Utilization 

  3. Number of Credit Inquiries

  4. Length of Credit History

  5. Credit Mix

Reference; The Big 5 Top Factors That Affect Your Credit Score