Your credit score is calculated and generated by credit bureaus who receive your credit information from the lenders. The computation of credit score varies from bureau to bureau due to the difference in the weightage given to the parameters. However, the variations may not be hugely different. Following is the range of weightage given to each parameter in credit score calculation.



 Payment History

 30% - 35%

 Credit History

 20% - 25%

 Credit Mix

 20% - 25%

 Hard Inquiries

 10% - 20%

 Credit Utilization   Ratio

 20% - 25%

As you can see, a major chunk of weightage goes to payment history, hence making on-time repayments is vital in improving your credit score. The lender has provided you a loan trusting your repayment ability and reliability. You can prove those virtues only through consistent repayment. Banks can make a decision as to give you a credit in the future or not only if your repayment history is positive. Even a single default or a late repayment can have a negative impact on your credit score as the weightage is higher on this segment. 

Ensure that you make on-time repayments without fail to have a good credit score. A credit score of 750 and above is considered a good credit score. If your credit score is less than that, take steps to find out the reasons and improve the credit score