Factors Which Impact Your Credit Score

Credit score, a three digit number, affects your life in a variety of ways like it is an important factor in determining your loan eligibility now and in future. Whether your application will be approved or not depends to a great extent on it. It gives lenders an assessment of your repayment capacity. Maintaining a good credit score is very important if you are looking for a loan. Several factors affecting your credit score are given below:

Your loan repayment history affects your credit score calculation. If you are paying all your loan EMIs on time your score will be good while late payments, bounces result in a bad credit score. Having a good mix of secured and unsecured loan is important as it denotes your expertise in handling various types of credit. Raising multiple loan queries in a short span of time affects your credit score. If your score is low try to pay all your loan EMIs and credit card bills on time. Also, avoid multiple loan queries. It is adviced that you do a thorough online comparison and select one or two lenders of your choice and then put forward an application. keeping these points in mind will surely help in improving your score.