Who issues a credit score or credit rating?

BAD CREDIT SCORE is a really scary phrase these days – since most lenders use this to make their credit decision. Here are a few factors which cause a negative effect on your credit score.

• Delay in payments : If there are any dues in your repayment track record, this will reflect poorly on your CIBIL™ score. Even a single default will have a negative effect on your score.
• Don’t carry too much of debt : When it comes to calculating what you owe to lenders, your repayment history and what amount you owe to lenders are 2 major considerations. If you utilize too much of your credit, your profile is considered to be “risky”.
• Length of credit history : The length of your credit comprises of 15% of your CIBIL™ score. If you have been servicing debt for a longer period of time responsibly i.e. by making payments on time, it will create a positive effect on your CIBIL™ score.
• Having too many newly opened accounts : Every time you apply for a new credit, banks and other NBFC’s run a bureau check and this reflects as an enquiry in your credit history.

Now that you know the major factors that affect your credit score, you must use all these to maximize your credit score. You can get your credit report online to know your CIBIL™ score and know how your credit score build up is progress. After all, having a good credit score is what helps you get multiple financing options.