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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:
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Repayment History
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Credit Utilization
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Number of Credit Inquiries
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Length of Credit History
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Credit Mix
Reference; The Big 5 Top Factors That Affect Your Credit Score