how is credit score calculated

Your credit score is calculated by credit bureaus based on the information in your credit report. The key factors considered are:

• Payment History: Timely repayment of loans and credit cards.
• Credit Utilisation: The amount of credit you use compared to your total credit limit.
• Length of Credit History: How long your credit accounts have been active.
• Credit Mix: The combination of secured and unsecured loans you have.
• New Credit: Applying for or opening too many new accounts in a short period.

These factors are weighted to determine your final score, which typically ranges from 300 to 900.