how is credit score calculated in india

Credit scores in India, such as the CIBIL score which ranges from 300 to 900, are calculated by credit bureaus based on an individual's credit history. The score determines your creditworthiness.

• Payment History: Consistently paying EMIs and credit card bills on time holds the most weight.
• Credit Utilisation Ratio: Ideally, keep your usage below 30% of your total credit limit.
• Credit Mix and Length: A healthy mix of secured and unsecured loans, along with a longer credit history, positively influences your score.
• Hard Inquiries: Frequent applications for new credit in a short period can negatively impact your score.