How does a credit score go down?

A credit score in India typically decreases due to inconsistent financial habits. The primary factors reported to credit bureaus like CIBIL include:

• Late or missed EMI and credit card payments.
• High credit utilization, such as using over 30% of your total credit limit.
• Multiple hard inquiries from frequent loan or credit card applications in a short period.
• Closing old credit accounts, which shortens your credit history.
• Errors in your credit report or being a victim of identity theft.