A credit score is a 3 digit number between 300 to 900 that summarizes your credit history. Generally, a credit score of 750 and above is considered excellent by lenders. You will get loan approval with ease. You will also get the loan amount that you require, flexible loan tenures, and affordable interest rates. 80% of loans get approved with a credit score of 750. The closer your score is to 900, the higher your chances of loan approval and getting best terms for the loan.
Here are a few factors that influence your credit score. To improve or maintain your score, you should know about these factors:
Factors Affecting Credit Scores Positively
- Paying your credit card bills on time
- Paying loan EMIs on time
- Not just paying the minimum amount due but also the entire outstanding bill.
Factors Affecting Credit Scores Negatively
- Not paying your credit card bills and loan EMIs on time or paying them late.
- Exhausting your credit limit completely or using more than 75% of your credit limit.
- Simply paying the minimum amount due on credit cards.
- Having too much credit, especially lines of credit in unsecured form.