Unraveling Your Credit Score: Why It Changes & What Truly Matters

• Repayment history is the most significant factor (35-40%), emphasizing timely payments across all loans and credit cards.
• Credit utilization should ideally be kept below 30% of your total credit limit to avoid appearing over-reliant on credit.
• A long and consistent credit history, including old accounts, positively impacts your score and demonstrates reliability.
• A diverse mix of credit types (secured and unsecured loans) shows responsible management of various financial products.
• Too many credit applications and inaccuracies in your credit report can negatively affect your score; regular checks are vital.

Why It Matters: Your credit score reflects consistent financial habits like timely payments and wise borrowing.