How does my credit score go down?

Your credit score decreases primarily due to irregular repayment habits and excessive debt. According to RBI regulated credit bureaus, several factors can negatively impact your rating:

• Missing or delaying EMI and credit card payments.
• High credit utilization, specifically using more than 30% of your total credit limit.
• Multiple hard inquiries caused by frequent loan or credit card applications in a short span.
• Closing long-standing credit accounts, which shortens your credit history.
• Defaulting on loans where you are a co-signer or guarantor.