5 factors affecting credit score

1. Payment history has the largest weightage on your credit score and the longer your default, the harsher the impact on your score.

2. Amounts owed or credit utilisation is also an especially important factor and the larger the amount owed, the lower the score.

3. A long and positive credit history can positively impact the credit score.


4. Credit score is negatively impacted by making multiple inquiries to multiple lenders.

5. A good credit mix between secured and unsecured loan helps build trust and positively impacts the score.

(Content on this page is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.)