Why Your Credit Score Matters?

Your credit score is your financial fingerprint — it tells lenders whether you’re reliable with money. In India, credit bureaus like CIBIL, Experian, CRIF High Mark, and Equifax generate scores ranging from 300 to 900. A score above 750 opens doors to faster loan approvals, better credit card limits, and lower interest rates.

Understanding what shapes your score is the first step to improving it. Let’s unpack the five core factors that influence your creditworthiness.

1. Payment History (35%)

Your payment history carries the most weight in your credit score. It shows whether you’ve consistently paid your bills, EMIs, and credit card dues on time.

What lenders look at:

• Late payments or defaults

• Loan write-offs or settlements

• Accounts sent to collections

Tip:

Set up autopay reminders and always pay at least the minimum due. Even one missed payment can dent your score for months. Consistency builds credibility with lenders.

2. Credit Utilization Ratio (30%)

Your credit utilization (also called amounts owed) measures how much of your available credit you actually use. A lower ratio shows that you rely less on credit.

How it’s calculated:

Credit Utilization = Total Outstanding Balance / Total Credit Limit x 100

Tip:

Keep utilization below 30%. Pay your credit card bills twice a month or request a limit increase without spending more. This keeps your score in the “safe zone.”

3. Length of Credit History (15%)

The age of your credit accounts helps lenders assess long-term behavior. This factor looks at both your oldest account and the average age of all accounts.

Tip:

Avoid closing old credit cards — even if you don’t use them often. Older accounts anchored with timely payments add stability to your profile.

4. New Credit Enquiries (10%)

Each time you apply for a new loan or card, lenders perform a hard inquiry, which temporarily lowers your score. Too many new accounts signal risk.

Tip:

Space out credit applications. Use pre-approval offers or soft inquiries to compare products without impacting your score. Apply for new credit only when truly necessary.

5. Credit Mix (10%)

A balanced credit portfolio strengthens your credit profile. It’s beneficial to have a mix of revolving credit (like credit cards) and installment credit (like car or home loans).

Tip:

Don’t rush to diversify. Let your credit mix evolve naturally as your needs change. Lenders reward borrowers who handle multiple credit types with ease.

How SCORE Ai Helps You Improve Your Score

At SCORE Ai, we analyze your credit report to pinpoint which of these five factors need the most improvement. Our AI-driven insights help you:

• Monitor changes in your score in real time

• Identify negative accounts affecting your profile

• Receive personalized dispute and repair strategies

We simplify credit improvement — so you can boost your score smartly and confidently.

Final Thoughts

Your credit score isn’t built overnight — it grows with discipline, consistency, and the right guidance. By managing these five factors wisely, you can transform your financial health and unlock better credit opportunities.

Take charge of your credit profile today with SCORE Ai — India’s trusted partner for smart credit improvement.