How To Determine Your Credit Score?

A credit score is a statistically derived numerical expression based on the level of analysis of a person’s ability to know if he or she can repay his or her debts. The Record is based on the person past credit history. A longer credit history will increase the credit score.

Payment History: Payment history is another key factor that plays a very effective role in your credit score. It should be nearly 35 percent. This determines whether you can be trusted to repay the money that is lent to you or not.

The payment made in less than 30 days is never reported to the credit bureaus. But often payments that are more than 60 days to 70 days late are considered to have a negative impact on your credit score. So make sure that you make your payments on time.

Balance Amount: Balance amount is equally important as that of payment history. It is estimated to be about 35 percent. It checks the ratio of credit available to you to the balance that you have on your lines of credit.

 It determines the amount of balances you owe. In simple terms, refers to how much of the available credit you have used. The less you use your balances; the better is your score.

Having a number of accounts is more likely to sometimes make payments late. Besides using numerous accounts, using only a small percent will add on a plus point to your credit score.

Read More :

RBI May Ease Rates Further: Chief Economic Advisor

FIIs Inflow Reaches Rs 21,000 Crore So Far In Jan