What factors impact my credit score?

In India, credit scores are calculated based on a number of factors, including:

1. Payment history: This is the most important factor and accounts for 35% of your credit score. Lenders want to see that you make payments on time and in full.

2. Credit utilization: This is the amount of credit you are using compared to the total credit available to you. High credit utilization can negatively impact your credit score.

3. Length of credit history: The longer your credit history, the better your credit score is likely to be.

4. Types of credit: Lenders want to see that you have experience managing different types of credit, such as credit cards, loans, and mortgages.

5. Recent credit activity: Opening several new credit accounts in a short period of time can negatively impact your credit score.

6. Credit mix: A mix of different types of credit, such as a credit card and a loan, can positively impact your credit score.