Five Killer advice for Credit Score | CIBIL

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Five common credit score killers!

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• Credit score plays a very important role in your
  financial life.  When it comes to you availing a
  loan or credit card, your credit score plays a
  deciding factor. A credit score is a numerical
  representation of your creditworthiness. Credit
  score can make or break your financial future. A
  bad credit score will land you in deep trouble
  when it comes to getting a loan, rent or a credit
  card. It is important to have a good credit
  score.
• It so happens many times that your credit score
  would have dropped and you wouldnt even know
  about it. There are several factors that can
  bring down your credit score or even cause severe
  damage to it without you being aware of it. Lets
  explore the most common credit score killers.

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• Listed below are the most common factors that are
  likely to bring down your credit score
• 1. Your credit history
• 2. Maxing out on your credit card
• 3. Late payments
• 4. Cancelling credit cards
• 5. Too many credit card applications

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Your credit history

• Your credit history contributes to your credit
  score. Your credit history constitutes for 35 of
  your credit score. All the negative entries on
  your credit history will reflect on your credit
  score thus damaging your credit score.

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Maxing out on your credit card

• Maxing out on your credit card is never a good
  thing and is one of the main contributor to your
  low credit score. If you have maxed out on your
  credit card it will go on your credit report and
  the credit score is calculated based on your
  credit score. It is advised to not max out on
  your credit cards in order to maintain a good
  credit score.

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Late payments

• Late payments will knock off a lot of points from
  your credit score. Making late credit card and
  loan payments is never a good thing and can cause
  serious damage to your credit score.

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Cancelling credit cards

• Cancelling credit cards can have a huge impact on
  your credit score. Cancelling credit cards is
  never a good thing but at times it is inevitable.
  Cancelling your credit card lowers your total
  credit limit and increases your utilization
  ratio. Hence it is important to not cancel your
  credit cards.

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Too many credit card applications

• All your applications for credit cards will be
  recorded on your credit report. Applying for too
  many credit cards in a short period of time can
  have a bad impact on your credit score as it will
  make you seem desperate to avail credit.

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