Boost Your Credit Score: Top Factors that Positively Impact It

Credit score, or CIBIL score, is among the top concerns of financially awakened individuals. The score is representative of financial management abilities and speaks for the person’s ability to handle finance-related actions and decisions. The score is checked by bankers and lenders while providing the loan, making it important to maintain. Small actions and slight mismanagement can impact the credit score and lower the joy of important occasions due to the non-sanctioning of the loans. 

Therefore, here are some pointers to consider to help you improve and maintain your credit score. The first one among them is to get a CIBIL score check free from the CIBIL score app

Where Does Credit Score Come From?

The three-digit credit score ranging between 300 and 850 states the creditworthiness of the score holder. RBI has been permitted to provide the credit score by  the companies registered under the ‘Credit Information Companies (Regulation) Act, 2005.’ 

Currently, four main credit bureaus can issue credit scores. They are CIBIL™, Equifax, HighMark™, and Experian. CIBIL™ is India’s oldest and most popular bureau concerning credit score requests. Next to it, Experian and Equifax are the preferred ones. Therefore, all the lenders must compulsorily submit the data to these bureaus to calculate credit scores. 

Factors Positively Impacting the Credit Score

A credit score ranging between 600 to 850 is considered good, with increasing value increasing the owner’s creditworthiness. In the case of individuals possessing lower scores, they must focus on increasing the score. Similarly, it is important to maintain the same for the individuals with higher scores. 

The credit score is compiled with several factors being under consideration.Some of these include: 

  • Payment History: 35% effect 
  • Amounts Owed: 30% effect 
  • Length of Credit History: 15% effect
  • Types of credit used and new ones (if applied): 10% effect 

Role of Each Factor in Credit Score

Let us consider the role of each factor in credit score in detail.

Payment History

It holds the highest percentage in affecting your credit boost and depends on the history of payback of funds. The timely payment of dues positively impacts it, while late payments accompany the negative points. 

The payment history also includes sending accounts to collections, foreclosures, charge-offs, bankruptcies, lawsuits, debt settlements, public judgments, and wage garnishments. The absence or presence of these terms also contributes to credit scores. 

Amounts Owed

The owed amounts consider the usage of the credit utilisation ratio. It measures the debt of the owner compared to the available credit limits. It is modified by the amount of utilised credit, where the bankers or lenders positively consider a lower one. The responsible usage of mixed types of credit based on different types of accounts is preferable. 

Length of Credit History

The longer history has a positive impact. Therefore, regardless of the usage status of credit cards, keeping and leaving the account open is among the expert suggestions for effective finance management. The longer duration of the account increases the credit score, and likewise, early closure of the account leads to the downfall of the credit score. However, efficient handling of finances in the short term also helps maintain a positive impact on the credit score. Ensure doing the CIBIL score check free through the CIBIL score app for constant monitoring. 

New Credit

The number of newly opened accounts and the period of opening the account is an important consideration for credit score. Opening new credit accounts negatively influences credit scores. It indicates improper cash management and should be avoided. 

Types of Credit in Use

The mixture of credit accounts, which includes store accounts, mortgages, personal loans, and credit cards, also impacts the credit score. The lower impact of the component on credit scores makes it less considerable compared to top affecting factors. 


Credit scores are important considerations for long-term financial planning. Improving them is critical to leverage the benefits. It can be done by working on the major factors influencing the credit score. Moreover, constant monitoring of CIBIL score check free through the CIBIL score app provides peace and confidence in the chosen method of improvement and maintenance of credit score. 

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