|WHAT IS A CREDIT SCORE?
It is a three-digit number that predicts the likelihood that you will make your loan and credit card payments on time, based on your previous credit and payment behavior.
The number ranges from 300 to 900. A low score indicates a higher risk, whereas a higher score indicates a lower risk.
Credit Score wise risk classification:
|WHAT IS A CREDIT SCORE USED FOR?
The Credit Score will help financial institutions make better-informed decisions, process credit card and loan applications faster and provide preferential benefits for those with high scores.
|HOW IS THE CREDIT SCORE CALCULATED?
The Credit Score is calculated using information from various sources, like banks, finance companies and telecom companies.
Your Credit Score is dynamic, and changes according to your credit and payment behavior. Missing or delaying a payment beyond the due date, frequently utilizing all your credit card limits, or taking on additional loans or credit cards may lower your Score.
However, reducing the number of credit cards, consistently reducing outstanding balances, and making payments on or before the due date will improve your Credit Score.